Bleak metrics to describe the oil price downturn are easy to come by. For instance: the oil price is down almost fifty percent from last year, and drilling rates in Western Canada are about half of last year’s levels.
Although there is wide disagreement on the future price of oil, there are some facts that almost everyone can agree on. First, that oil is an essential commodity (validated by the 94 million barrels of oil consumed in the world each day). Next, that economic growth drives oil demand in a reasonably predictable manner. And […]
The casualties of low oil price are stacking-up. Pink slips are being handed out at alarming rates, oil rigs are lying idle, and the list of cancelled mega projects is growing.
Despite the weak oil price, Canada’s oil sands will keep expanding. The milestones announced in today’s news demonstrate that fact, with Surmont 2 producing first oil and the next phase of Sunrise starting steaming operations. But do not be fooled into thinking that the oil sands are immune to the low oil price. They are […]
