Glossary entry (derived from question below)
English term or phrase:
higher price also means higher capital crude
English answer:
>>see explanation
Added to glossary by
mockingbird (X)
Aug 31, 2006 05:35
17 yrs ago
2 viewers *
English term
higher price also means higher capital crude
English
Other
Energy / Power Generation
general
The original language is so poorly written, so do you think the above phrases still make sense?
Indonesia is hoping that the prices will not be extremely low or high. The extremely high price may cause social political unrest in this country which will just lead the government in giving a bigger subsidy. HIGHER PRICE ALSO MEANS HIGHER CAPITAL CRUDE which will result in the increase in oil production costs.
Indonesia is hoping that the prices will not be extremely low or high. The extremely high price may cause social political unrest in this country which will just lead the government in giving a bigger subsidy. HIGHER PRICE ALSO MEANS HIGHER CAPITAL CRUDE which will result in the increase in oil production costs.
Responses
18 hrs
Selected
>>see explanation
This seems to be a government agency report. In such report they assess the impact of higher oil price. The sentence to me means this:
"higher price" = price paid at the pump for petrol or diesel;
"higher capital crude" = higher cost of drilling and pumping out the crude from the ground. In a country that has some exploration and drilling this also means that there is increased level of investment into drilling as the exploration companies get sufficient return when the prices are higher. To the government higher oil prices mean there will be higher capital spending in the oil industry.
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Note added at 18 hrs (2006-09-01 00:17:06 GMT)
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Just another thought - "higher capital crude" may refer to the ratio of exploration cost (capital spend) to the price achieved for the end product (capital return). In the rising market this ratio also rises.
"higher price" = price paid at the pump for petrol or diesel;
"higher capital crude" = higher cost of drilling and pumping out the crude from the ground. In a country that has some exploration and drilling this also means that there is increased level of investment into drilling as the exploration companies get sufficient return when the prices are higher. To the government higher oil prices mean there will be higher capital spending in the oil industry.
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Note added at 18 hrs (2006-09-01 00:17:06 GMT)
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Just another thought - "higher capital crude" may refer to the ratio of exploration cost (capital spend) to the price achieved for the end product (capital return). In the rising market this ratio also rises.
4 KudoZ points awarded for this answer.
Comment: "Thanks a lot for your explanation"
2 hrs
higher-capital crude (oil)
If you hyphenate higher-capital it clarifies the meaning a little. Adding oil to the sentence too makes a bit of a difference. Basically, I understand it to mean that as the cost of crude oil increases, so does the cost of production, which has a knock-on effect on the price of oil derivatives such as petrol/gasoline.
Peer comment(s):
disagree |
Lubosh Hanuska
: Higher oil price does not increase cost of production directly. It is the market cycle of supply and demand that does that. I can't see that being said in the context of such short sentence...
16 hrs
|
agree |
anastasia t (X)
1 day 20 hrs
|
3 hrs
higher priced gasoline is the result of higher priced crude oil
higher price also means higher capital crude => higher priced gasoline is the result of higher priced crude oil
Peer comment(s):
neutral |
Lubosh Hanuska
: This seeems rather simplistic.
14 hrs
|
why does it have to be complicated ??
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Discussion
a more likely cause and effect scenario. So my above guess, is just that,
a guess. Hopefully, somebody else has a better idea what "capital crude" means.
"Higher prices mean higher crude extraction costs" and while we are
seeing both higher prices and higher extraction costs in the present
world market, one does not necessarily...