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Hack&Lube · 02-07-2013, 09:35 AM

We may be in for a downturn for a couple years. All these pipelines are up in question and I know several traditional producers are trying very hard to wean themselves off their older reliance on LNG because the prices are going below subsistence for keeping a lot of these facilities online.

A lot of medium companies are banking on SAGD/Thermal projects to save them but as already been said, these projects take several years to build up and develop (not to mention many multi-millions in investment capital that has to be raised first) before you can even get to production so it's a longer-term goal (3-10 years) and who knows where we will be by then.

The hope for the pipelines is that they will open up new markets for LNG or open up a gateway to refineries in the gulf coast to stem the bleeding. The world population is ever increasing and the supply is finite (even though we keep finding new reserves or inventing new ways to extract O&G) so demand will go up again. It's just hard to say how far in the future that is.

02-07-2013, 09:35 AM	#31
Hack&Lube Atomic Nerd Join Date: Jul 2004 Location: Calgary Exp:	We may be in for a downturn for a couple years. All these pipelines are up in question and I know several traditional producers are trying very hard to wean themselves off their older reliance on LNG because the prices are going below subsistence for keeping a lot of these facilities online. A lot of medium companies are banking on SAGD/Thermal projects to save them but as already been said, these projects take several years to build up and develop (not to mention many multi-millions in investment capital that has to be raised first) before you can even get to production so it's a longer-term goal (3-10 years) and who knows where we will be by then. The hope for the pipelines is that they will open up new markets for LNG or open up a gateway to refineries in the gulf coast to stem the bleeding. The world population is ever increasing and the supply is finite (even though we keep finding new reserves or inventing new ways to extract O&G) so demand will go up again. It's just hard to say how far in the future that is. Last edited by Hack&Lube; 02-07-2013 at 09:37 AM.