Quote:
Originally Posted by crazy_eoj
While this is somewhat true, I think the much larger impact in Alberta in particular is increased taxes, fees, royalties, regulatory requirements, egress costs, etc. It all adds up.
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I would beg to differ.
Canada Oil and gas barrel production Cost, March 2016:
Gross taxes: $2.48
Capital spending: $9.69
Production costs: $11.56
Admin transport: $2.92
Total: $26.64
https://en.wikipedia.org/wiki/Price_of_oil
Yes, old numbers, but the bulk of the costs are in extraction and production, which are very energy intensive.