Quote:
Originally Posted by Ozy_Flame
Wthout knowing the intricate details of oil production, is this a good thing that an international juggernaut like Shell is selling to Canadian firms?
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I would say yes and no. It shows that you need economies of scale to be viable in the oilsands right now, and with this deal its a significant shot in the arm for CNRL. It increases a few factors for them which is great.
The other side of the coin is that this, combined with the write-down we saw from Exxon is showing that the super-majors don't see viability here. It's not just today, but over the coming decade that the oilsands aren't economically viable for new production. That is a bit scary to say the least.