Fracking Marijuana – How the Oil Markets Show the Future Price of Cannabis

In some ways, marijuana is like oil; there is a cost to get it out of the ground, there are heavy investments in fixed assets to get it out of the ground, and as long as the price is greater than the cost to get it out of the ground, the effort generates cash for the business. Whaaat??? Assume for a moment that the variable cost to get your commodity out of the ground is $20 and you sell it for $80.