Looked at the futures markets for light crude and Brent crude. By 2021 Brent futures are under $83. By 2021 light crude is under $76, I think. Another site said that Canadian tar sands oil production is not practical for less that $95 except for less than 10% of production which can go as low as $75. With that situation, the Keystone XL Pipeline may loose momentum.
I read reports in Barrons suggesting that oil could go as low as $35 and be relatively stable around $65. Can’t wait to see the future.
On the oil sands, although perhaps not on every part, I think established companies can make money she oil is only going for $40/barrel. There’s no exploration when it is this low, but what has been developed can still be profitable.
That is just silly. Their production rate climbed for decades at lower prices. The growth will be slower at $60 than $100, but it will still continue growing.
Not all oil sands projects are created equal, of course. Cenovus, which uses super-hot bursts of steam to melt seams of bitumen buried too deep to mine, says it can coax oil from the sands for between $35 and $65 (U.S.) per barrel, depending on geology and other input costs.