Quote:
Originally Posted by The Goon
A piece on Global National tonight said that oil needs to be $90/barrel for the oilsands projects to be profitable.
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Thing is, that number is not independent on the price. Oil price comes down, steel, labour etc. comes down, break-even price of oil comes down. The guys who have cash will be able to build their upgraders cheaper in the current environment because the guys who don't will be out of the market. But still, the process of bringing the economy back into equilibrium will hurt.