Quote:
Originally Posted by burn_this_city
We already saw signs of that before oil prices tanked. Companies shelved major projects and began to examine a staged growth strategy with incremental expansions. People also forget the sustaining capital is still a massive chunk of money that will be spent annually regardless of the broader health of the industry.
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I'll add to that that companies also started to focus on how to modularize oil sands development. We've mostly got that nut cracked for in-situ now but its going to be tough to figure it out for mines. Mines, by nature, realize significant benefits through economies of scale.