Quote:
Originally Posted by fotze
But lets not forget about the horrible oil price of $112 that we are going to hear about today because it has really slashed our surplus. Never thought I'd see the day the oil price was as low as $112.
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I am not sure if you meant to have this in green or not
The projected drop in our surplus is due to a projection of $145 us/bbl crude which is now around $115. It'll still be a hefty surplus.
Oil/gas has bubble written over it just like real estate. Hype and speculation have driven up both markets beyond what they can realistically sustain.
That being said, anything above $50/bbl for crude still feeds our surplus and keeps jobs/investments in Alberta. Once it gets lower than $50/bbl the oil sands aren't as economical due to the high refining costs.