Canada’s Oil Industry Doomed If Prices Fall Lower

21 Aug 2017   Canada

Canada’s oil industry has faced a lot of strain lately. The list of oil majors selling off assets and withdrawing from high-cost oil sands is long. ConocoPhillips, Royal Dutch Shell, Marathon Oil, Murphy Oil and Statoil have sold upwards of $25 billion worth of oil sands assets this year. ExxonMobil also wrote down more than 3.5 billion barrels of oil reserves in Canada at the beginning of 2017. The companies viewed Alberta’s bitumen and heavy oil as no longer competitive in a $50 market, and many of them are focusing on other types of production, such as shale. Of course, that doesn’t mean that those projects are getting shut down. The purchasers were some of the same Canadian-based oil sands producers that have long dominated the market, such as Cenovus Energy and Suncor Energy. And by all accounts, Suncor Energy is actually doing pretty well . It will actually […]

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