Saudi oil is break even at $1 at the wellhead. That's hard to compete with.
Yeah but as I said before Western analysts have come out and publicly stated that SA is fudging it's reserves.
The Saudis admitted this summer that they could not increase capacity.
There are two components to increasing capacity; available unexploited reserves and the ability to bring them to market.
My research has revealed that 80% of Saudi oil is water pumped into the fields in order to squeaze out the remaining non pressurized oil. That is a classic example of a declining resource.
The future is not easily accessable and cheap sweat crude it is heavy oil in secure locations close to secure infrastructure.
Where will you find that? Canada.
"The future is not easily accessable and cheap sweat crude it is heavy oil in secure locations close to secure infrastructure."
Bastard sentence should read;
The future is not IN easily accessable, cheap sweat crude it is heavy oil in secure locations close to secure infrastructure.