If OPEC priced its oil based on how much it costs to get it out of the ground, we’d be swimming in it right now. Or, more precisely, we would have been swimming in it, until we used it all up. The peak would have come long ago.
When the market prices oil, the cost is based on the scarcity, which is higher than the cost of production. You use less. It last longer. Won’t last forever this way, but this approach to pricing stretches out the resource a bit.
Water? Not so much, as this discussion in the city of Santa Fe exemplifies:
The City Council late Wednesday narrowly approved an 8.2 percent boost in base rates for each of the next five years, allowing water managers to execute a 10-year plan to upgrade and maintain the community system.
The pricing discussion here is entirely about how to meet the costs of delivering the water. Which here in the West we are using up at an alarming rate.