Oil production costs double

Supply lag reaches 5-7 years: He told a Gold Coast conference that the cost of steel, oil rigs and staffing was doubling. "Development of supply generally comes with a lag of three to five years," Voelte said. "This year we’re talking five to seven years.

Rigs priced at $500,000 a day: "We as an industry are struggling to meet demand. We just contracted a rig for $500,000 per day and we’ve got between five to 10 rigs (operating) at a time."

Ergon wants higher electricity price: Meanwhile, Ergon Energy chair Keith Hilless told the conference consumers were not paying enough for their electricity although the cost of coal and oil kept increasing. "We’re selling the stuff too cheap," he said.

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