At Business Insider: The Breakeven Oil Prices For Every Drilling Project In The World
(Click for full size)
Related – Alberta Gas – All Dressed Up and No Place to Go?
At Business Insider: The Breakeven Oil Prices For Every Drilling Project In The World
(Click for full size)
Related – Alberta Gas – All Dressed Up and No Place to Go?
Canada is in deep do-do. Where will the Equalization Payments come from? Will the West separate?
The federal and provincial governments could just reduce tax rates on the oil/NG sector, and on capital gains. Heresy, I know.
The good news is that the curve moves downward over time as technology improves. Whether it can move down far enough, that is hard to say. This will certainly put a lot of pressure on oil sands producers to innovate. Having a keystone pipeline to use will be a first cost-saving step.
I was told peek oil would hit us in 1985-1990, so what is this nonsense about increased production causing price drops:-))
But Wynn wants a wonderful “carbon tax” AKA another energy tax.
What’s that? My gas bill could drop in half this winter? Oh noes!
The price of gas in Leduc is 90.9 cents a liter. I love me some price wars.
Greenpeace freakos oppose drilling for oil claim this FRAGILE EARTH popycock and you can always expect some hollywood freako like ROBERT REDFORD to appear in junk mail from the Sierra Club or Greenpeace while Greenpeace uses Diseil fuel in their garbage scows RAINBOW WARRIOR II or ARCTIC SUNRISE
I fully expect the Progressive Conservative Party of Alberta to use the crashing energy prices to bring in a “point of sale” sales tax. They’re unable to cut back on expenses as Ralph Klein did, they’re not even seriously considering it.
Bring it on Mr. Prentice. Go to the next election with that millstone.
Wow poor souls who purchased average homes for over half a million bucks in Fort Mac, when oilsand development cuts back, as it will most certainly do at these oil prices.
I recall all the nodding heads assuring us the oil would be all gone by the late 90’s, and then the ice age. With overpopulation, no chance we could feed 5 billion. ssdd
Breaking OPEC, this is what is on the table.
The price of NG affects alternatives such as coal or oil…..
It seems that matters will sort themselves out…..which it seems Obola feared….and free market has sorted things out despite the Ombamination’s best efforts (blocking offshore drilling, drilling leases on federal lands etc)
Low energy prices certainly affects the ability to finance mischief….ISIS could be defeated without firing a shot…..
The watermelons’ biggest nightmare is reality. A huge NG field slap up against (or under ) the biggest NG market….the US North East.
“…ISIS could be defeated without firing a shot…”
I need some of what yer smokin’.
ISIS is armed by Obama, and he’s borrowing the money he spends arming them.
Remember that oil is priced in USD and the CAD has dropped 10 or 12%. Also, oil producers know they are overspending and this is a good price signal for them to start to cut costs. And finally, oil producers are notoriously conservative and do not always pay attention to new cost savings technologies as they are focused solely on maximizing volume not minimizing cost. Maybe now they will invest in better tech, focus on costs and carry on.
And those that cannot deserve to die and let a smart operator take them over.
Still a lot of money to be made by smart companies.
Oh, and a Keystone pipeline will not raise prices at all. US exporters will still insist on a discount. But a pipeline west, east, or my favourite, north to Tuk will allow us to capture full world price with no discounts.
looks like I do not have to worry about my grandkids having fuel to keep warm, unless the government does something stupid.
Now, the real question with this graph is whether these are incremental lifting costs, or if it includes the capitalized cost of initial well exploration and development. Exploration and development are considered to be sunk costs, and once the project is in production all that really counts is the lifting cost. As high as petroleum prices used to be, most of those projects have probably paid back all the E&D costs, so anything above lifting cost is just gravy.