Quote:
Originally Posted by Flacker
My understanding is that the costs to restart Sagd is astronomically high, so I'm sure that is factored into the overall timing of pulling the pin. I'm sure there are lots of engineers here that can chime in.
The fuel cost, and carbon footprint of having to reheat the entire system can't be insignificant. And if there is risk of long term production degradation, risky to say the least.
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Yep this is true. Which is why I think that most Sagd producers would have hedged enough of 2016 production to survive the $20 oil scenario. The downside risk is just too high if you were forced to shut in.