2 ms·
Sounds like the US oil industry. Many wells that should be shut down as uneconomical at current oil prices are still producing. This is to service an estimated
by peter303 11y ago
Sounds like the US oil industry. Many wells that should be shut down as uneconomical at current oil prices are still producing. This is to service an estimated $150 billion in loans from banks and hedge funds.
- bpodgursky 11y agoJust because it's uneconomical to drill a well at a given price doesn't mean it's not profitable at the margin to keep pumping from it, given that the drilling is a sunk cost.