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Canada’s Oil Industry Doomed If Prices Fall Lower

By Nick Cunningham – Aug 20, 2017, 6:00 PM CDT

Canada’s oil industry has faced a lot of strain lately. The list of oil majors selling off assets and withdrawing from high-cost oil sands is long. ConocoPhillips, Royal Dutch Shell, Marathon Oil, Murphy Oil and Statoil have sold upwards of $25 billion worth of oil sands assets this year. ExxonMobil also wrote down more than 3.5 billion barrels of oil reserves in Canada at the beginning of 2017. The companies viewed Alberta’s bitumen and heavy oil as no longer competitive in a $50 market, and many of them are focusing on other types of production, such as shale. FULL ARTICLE

1 Comment on “Canada’s Oil Industry Doomed If Prices Fall Lower”

  1. #1 Christopher Ives
    on Aug 21st, 2017 at 17:39

    Look at the amazing amount of oil available in Texas – Chris.

    “From peak oil to energy abundance. Energy expert now says the Permian Basin is a permanent, near-infinite resource”.

    Mark J. Perry @Mark_J_Perry – August 21, 2017 1:05 am | AEIdeas

    http://www.aei.org/publication/we-should-view-americas-most-prolific-oil-field-the-permian-basin-as-a-permanent-near-infinite-resource/

    EXCERPT – Allen Gilmer, Co-Founder and Executive Chairman at DrillingInfo is not a man who minces words, an attribute that has served him well during a long career in the oil and gas industry. When it comes to the Permian Basin in West Texas and the amount of oil and gas resource contained in it, he becomes positively loquacious. “We should view the Permian Basin as a permanent resource,” he says, “The Permian is best viewed as a near infinite resource – we will never produce the last drop of economic oil from the Basin”.

    No one disputes that the resource in the Permian is huge, but ‘infinite’ is a big word. I asked him to expand on that concept. “That is the practical reality with the amount of resource that is in the ground,” he says, “The research we’ve done indicates that we have at least half a trillion barrels in the Permian at reasonable economics, and it could be as high as 2 trillion barrels. That is, as a practical matter, an infinite amount of resource, and it is something that has huge geopolitical consequence for the United States, in a very good way. It has a huge consequence in terms of GDP, and right now it is creating an American energy global ascendancy.”

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