Re:Norway Is Walking Away from Billions of Barrels of Oil
by mises on Monday April 08, 2019 @07:10PM
(#19610055)
The difference is not just profit margins, but very different capex and opex. Capex on oil rigs is large (especially offshore), but opex is pretty reasonable. I would imagine iron mining has much higher opex. A better approach it may be to loot at the graphs of average fixed/variable/total cost, which are very different.
As far as I'm aware, profit margins on iron aren't too shabby either, though I'd have to do some digging how this all shapes up in these specific cases (Norwegian oil vs Australian gold, iron and coal).