macafie

Friends in Alberta, Canada are starting to sweat right now because of this. Good on ya for saving. its an unpredictable market right now.

I say sweat Ironically because its like -40 up here.

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Production costs far more now then it did 10 years ago. Producing at a loss will slow production. It doesnt matter if the infrastructure is there. Drilling is a fixed plus variable cost meaning for every barrel they pump out they need to invest a certain amount. When the breakeven point is $40 per barrel at Suncor they begin to slow production as WTI Crude is trading down currently at 53.93

Alberta is not running just as many rigs last year as I know for a fact that Nabors Drilling racked over a dozen rigs in the last 2 weeks and more are following. As OPEC continues to increase production the price will continue to fall meaning Alberta will have to slow down production due to the disadvantage in cost they have to OPEC. If you're not sweating in Alberta you are not properly informed.

At that point its the same somehow. I really dont understand why