[Takchess]

Just to be clear about the following statement::

The initial estimate of the cost of the oil from the Missouri plant is $15 (£9) a barrel. The "lifting" price - how much it costs to get oil out of the ground - is very cheap in the Persian Gulf, around a dollar a barrel, while from Gulf of Mexico, North Sea or Alaska the "lifting" price is $8-12.

I am assuming that lifting price refers to the variable cost of lifting a barrel of oil. Labor special concerns for the environment etc.

It does not include special price of oil platforms etc what I would consider to be a fixed cost. I imagine the fixed cost of oil rigs has to be more expensive in cold/sea location that on hot/dry locations.

Is this true?

[AgentR]

It would be very unusual for an accountant to use the word "cost" without some disclaimer without including the costs of depreciation of the fixed assets involved in the activity.