Other Things Equal, Extracting Oil from Shale Becomes Economically Viable

question 53

Multiple Choice

Other things equal, extracting oil from shale becomes economically viable (same or lower cost than using conventionally extracted oil) when oil prices reach _____ or more per barrel.

• A)$80
• B)$110
• C)$50
• D)$40

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Definitions:

Compounded Monthly

Refers to the process where interest is calculated and added to the principal balance on a monthly basis, leading to interest on interest.

Future Value

The future date value of an asset or cash that matches a given sum today.

Equal Amount

A quantity that is the same in value, size, or measure as another.

Compounded Annually

This involves the calculation of interest added to the principal sum of a loan or deposit once per year, where each year's interest is added to the principal for the calculation of future interest.