Commodity Bubble Proponent

Oil Futures Market: Unwinding the Bubble

Nice piece...you should also point out that a large portion of the "run-up" in oil costs was due to the fact that guys like Transocean, Diamond, Schlumberger, etc. were getting ridiculous profit margins on their rigs. Once more of these things get built, the cost of production will naturally go down.

Oil rig builders do not need 50% IRRs to justify the development of new equipment.