Leaner and Meaner After The Crash, Oil Sands Industry Expands

27 Jan 2017   Tar Sands

This time last year, businesses operating in the oil sands of Alberta seemed pretty much done for. Canadian crude sold for less than US$20, and there was no chance of higher prices as OPEC had dug its heels in, pumping ever-increasing amounts of crude, and environmental opposition towards the industry kept growing and getting louder. A year later, those that made it through the worst of the price crisis are leaner due to heavy cost cuts, and also meaner, capable of adapting to a consistently lower price environment. Ironically, they have OPEC to thank. The cartel, which seemed determined to drown shale boomers and oil sands producers along with them in cheap oil, eventually discovered that it would suffer as well, and may possibly suffer to a greater extent than its target, so it struck a production cut agreement that pushed prices up above US$50 a barrel. At US$50 […]

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