- Joined
- Aug 22, 2008
- Messages
- 428
-Canadian oil companies that only months ago were struggling to keep up with demand are facing having to shut in huge quantities of their production if oil prices continue to weaken. -"With demand vanishing across all key oil consuming regions, a strong rebound in prices in the first half of 2009 is unlikely," Merrill Lynch commodities strategists said.
-Canada`s oil and gas industry produces 2.7 million barrels a day, from fields in Alberta, Saskatchewan and Newfoundland. Such a decline in volumes would not only devastate private companies but decimate the budgets of provincial governments that derive a large part of their revenues from royalties. While $38 a barrel oil would have been unthinkable weeks ago, it is less than $6 dollars away from yesterday`s closing price in New York of $43.67, off $3.12.
-Oil prices have already declined more than $100 since July. The brokerage predicted an average of $43 a barrel in the first quarter and $45 in the second quarter, rising to $56 in the second half of 2009 and to $70 in 2010. It said a temporary drop below $30 a barrel is technically possible if the global recession extends to China and the Organization of Petroleum Exporting countries fails to make sufficient cuts.
-New oil sands projects need oil prices to be above $80 a barrel because the cost of building them has escalated.
Link: http://www.financialpost.com/story.html?id=1033887
-Canada`s oil and gas industry produces 2.7 million barrels a day, from fields in Alberta, Saskatchewan and Newfoundland. Such a decline in volumes would not only devastate private companies but decimate the budgets of provincial governments that derive a large part of their revenues from royalties. While $38 a barrel oil would have been unthinkable weeks ago, it is less than $6 dollars away from yesterday`s closing price in New York of $43.67, off $3.12.
-Oil prices have already declined more than $100 since July. The brokerage predicted an average of $43 a barrel in the first quarter and $45 in the second quarter, rising to $56 in the second half of 2009 and to $70 in 2010. It said a temporary drop below $30 a barrel is technically possible if the global recession extends to China and the Organization of Petroleum Exporting countries fails to make sufficient cuts.
-New oil sands projects need oil prices to be above $80 a barrel because the cost of building them has escalated.
Link: http://www.financialpost.com/story.html?id=1033887