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Oil Prices have Dropped, so Deepwater Drilling Just isn't Worth the Money

Between July and November 2008, oil prices fell from $150 to <$55 per barrel. While prices were phenomenally high, deepwater exploration was a useful and profitable technology, as it allowed oil companies to expand production while margins could be high. Now that prices have fallen by nearly 200%, deepwater exploration is much less profitable; its costs are on par with tar sands production costs, which can run as high as $90 per barrel. Clearly, with crude prices hovering in the region below $60/bbl, deepwater exploration isn't worth the money anymore.

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