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It's not the yield, but the profit. Statoil makes huge margins on their oil because once the tricky rig was set up, it just comes out like Gold. Most other na
by sonnyblarney 8y ago
It's not the yield, but the profit.
Statoil makes huge margins on their oil because once the tricky rig was set up, it just comes out like Gold.
Most other natural resources have much thinner margins due to processing, overhead.
'Sweet Crude' i.e. the kind you get in the desert, and 'sweet once it's setup to be' i.e. Statoil ... this is a different thing together from other natural resources.
Norway is like Kuwait, it's almost impossible to compare it to anything else.
They can leave the Oil in the ground for now because they are very rich and have more money than they know what to do with.
- cygx 8y agoYou know what also comes out like gold? Actual gold :p As far as I'm aware, profit margins on iron aren't too shabby either, though I'd have to do some digging how this all shapes up in these specific cases (Norwegian oil vs Australian gold, iron and coal).
- mises 8y agoThe difference is not just profit margins, but very different capex and opex. Capex on oil rigs is large (especially offshore), but opex is pretty reasonable. I would imagine iron mining has much higher opex. A better approach it may be to loot at the graphs of average fixed/variable/total cost, which are very different.