Quote:
Originally Posted by username
You think oil at today's prices is the reason global companies are taking their money and investing it in the same product elsewhere?
Same product.....same price......what's different? what changed?????
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The capital intensity of our projects is significantly higher than shale. The drilling cost reductions on the shale side were far more significant than the facility cost reductions realized on the SAGD sides. Long timelines for payback compared to shale where you get your money in and out quickly. The best reservoir being owned by currently producing assets and the realization that marginal assets at current prices do not warrant a 20-40 year investment.