Quote:
Originally Posted by CampbellsTransgressions
Here's a question.
If we're currently collecting most of our royalties at the gross revenue rate, will the projects that exist now and that were started over the last few years hit payout at current oil prices?
Can we expect to see our royalties go up, even though production levels might stay the same?
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At current commodity prices and with the cost of capital in the formula, I would expect most oil sands projects to never reach payout.
Obviously if prices go back up some will, but if prices go back up we'll see new projects...