Quote:
Originally Posted by burn_this_city
I'm getting worried if oil sinks below $70 a lot of oilsands projects in the planning stages will be cancelled.
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I think you'll see a lot of stuff post-poned as opposed to cancelled. The funny thing about oil prices is that as they sag so does the Canadian dollar. It somewhat protects producers as a bit of a natural hedge. Also there's going to be a glut of construction workers and laid off workers from completed project phases (Ie Long Lake, Horizon) who will need employment and will work for less than a millionaire's salary. In a low commodity price/US recession environment you'll find a lot of the inputs whose increasing costs pushed break-even economics to $70/bbl in the first place will start to come down and push down the required oil price to make them economic. I'm not too worried about $70 oil.