Canada Ping!
Posted on 09/17/2015 3:11:24 PM PDT by bananaman22
That low oil prices are squeezing out oil sands producers is not breaking news. But in spite of a grim oil price outlook, production out of Calgary has continued to grow, defying both expectations and logic. The implications are serious, not just for the future of Canada’s energy industry and economy, but also North American energy relations.
In June 2015, the Canadian Association of Petroleum Producers (CAPP) revised down its 2030 production forecast to 5.3 million barrels per day (mbd). A year earlier the group predicted Canada would be able to produce 6.4 mbd by 2030. This is compared to the 3.7 mbd produced in 2014. Most experts agree that capital intensive oil sands projects are marginal – if not loss-making – in the $45 – $60 range. Yet production continues apace.
Of course, the nature of capital intensive operations such as the oil sands is that they are also prohibitively expensive to shut down. Producers are left in limbo, praying that prices will rise.
(Excerpt) Read more at oilprice.com ...
there is no death.
the province is rich in resources, and will do just fine.
short term problems abound, but over the longer term, they can have the largest oil field in the Americas.
It’s not enough to have lots of oil, you have to be able to get it to market too.
Environmentalists figured that out, that why they manage to bog down any new pipeline proposals in years of red tape.
This type of economic extortion has to change for North American energy to grow.
In time, all that will be overcome.
Resource rich areas will always be able to prosper over the longer term.
Just two years ago Goldman’s commodities expert predicted$150 oil. Today he predicted $20 oil and a glut for the next 15 years as from 1986.
The experts seem to be consistently forecasting the current conditions.
IEA and EIA data both suggest production will fall below supply in the next year. Their production forecasts look optimistic and the consumption looks pessimistic since they are both mostly a forecast of the present.
I doubt Goldman is correct and I don’t trust them at all.
I’m losing interest in the whole affair. I’ll ride it out another year and then plan on going to he farm for good.
BTTT.
Canada Ping!
Petro Ping.
I suspect a decade or two ago, the coal rich areas thought the same.
From the article:
One way to ease an oversupply in the U.S. - and make room for even more Canadian crude - would be to reverse the outdated crude oil export ban.
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Very true. Importing their cheap heavy crude while exporting our expensive light sweet from Shale keeps us with dependable supply and a positive trade balance in the exchange.
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