Quote:
Originally Posted by GGG
Our barrels are actually pretty cheap to produce. They are very capitally intensive to expand production but sustaining existing production is relatively low cost.
We have long reserve life relatively low capital intensity sustaining production compared to something like Shale oils. The pipelines also already exist so depending on what they do with the capital recovery portion of the fee it would be interesting to see the opex shipping cost.
So while no investment in a declining price environment would avoid Canada CNRL will continue pumping out production to the last barrel.
Canada is well positioned to produce the worlds latest life barrels.
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It's not just production, though. There's the pipeline thing, along with needing condensate, then long distance shipping. If demand drops something like 20%, our oil looks a lot less attractive globally because the nearest resource will make more sense, and we will be competing against new energy sources for cost as well.