Quote:
Originally Posted by Harry Lime
The issue may be a bit more complicated than that graph indicates. From the looks of it, as long as we keep the price of oil below $75, we should be able to push everybody out of the Arctic, because the most valuable commodity would be walrus tusk.
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Sub $75 would absolutely keep everybody out of most of the arctic.
The big losers in this price war are not the shale guys. They might lose short term, but in the long run its the mega projects (deep offshore, greenfield oil sands). This price war brings volatility and uncertainty that will drive up the risk premium for capital to fund them, thereby bringing up the breakeven price of oil for these projects.