Quote:
Originally Posted by Frequitude
Matt, that's a great chart. The most important thing to take away from that is that the theoretical stable long term price of oil is about $65-$70 (The point at which current demand of 90-90mmbpd crosses the supply line).
Correct. Not to sustain existing production, that's in the $30-$40 range. But including return on capital we need at least $70 for new growth.
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I am admittedly out of my element here, but if that is the case, isn't it looking like it will be awhile before oil hits that level again?
Is new growth in Alberta's energy sector something that is desperately needed, or is it desperately needed to continue as a boom period?