Because of speculation, today’s oil prices of about $100 a barrel have become disconnected from the costs of extraction, which average $11 a barrel worldwide.
Here I have a modest suggestion. If Representative Kennedy knows a way to go out and produce another barrel of oil somewhere in the world for $11 a barrel, he would do a world of good if he would actually go out and do it himself, as opposed to simply asserting confidently in the pages of the New York Times that it can be done. People with far more modest fortunes than Kennedy inherited are out there using their resources to try to bring more of the physical product out of the ground.
And many, many more would be attempting the feat if it were remotely possible to produce a new barrel of oil for anywhere close to $11.
If you want to prove me wrong, Mr. Kennedy, then don’t talk about how easy it is to produce more oil– just go do it.