It would seem there are two issues....... drilling and production.
Past drilling or oil sands development have resulted in serious increases in production.
New projects will cost too much to bring on line at prices resulting from the new supply.
But, we have a fantastic production increase already. The question then becomes why attempt further increase if the
costs make the effort unprofitable?
It would seem that fracking made oil sands uneconomic.
The drillers seem to have had their day and the frenzy is waning
Only some of the oil sands (and it is more than just hydro frac'ng). Some of the oil sands, as this article states, are economic down at $40/bbl.
The same thing applies with the US shale oil production. There are areas that are economic at the lower prices and some that are not. The average break-even price will move down because the more marginal (expensive) areas will no longer be pursued.