Economy 52,864 Posted December 6, 2014 Share Posted December 6, 2014 http://www.marketwatch.com/story/plunging-oil-prices-will-starve-the-world-of-its-economic-fuel-2014-12-05 http://business.financialpost.com/2014/12/04/oil-projects-worth-more-than-150-billion-face-the-axe-in-2015-because-of-plunging-prices/?__lsa=6b7e-c2b4 US and Canadas oil is among the most mos expensive to produce in the world because oil sands and shale is mucu more complex than simply pumping liquid oil With the current low prices making many projects uneconomical, just a few months since the collapse of oil prices already expantion plans are stallingIn the US permits for oil fields developments fell by over 40% from October to November alone. And in Canada many multi-billion dollar companies have announced they are postponing projects for expansion until prices and demand shows signs of stabalizing Link to post Share on other sites More sharing options...
APPLAUSE4YOU 454 Posted December 6, 2014 Share Posted December 6, 2014 What does this mean? Prices are about to rise again? Or continue dropping? Link to post Share on other sites More sharing options...
Economy 52,864 Posted December 6, 2014 Author Share Posted December 6, 2014 What does this mean? Prices are about to rise again? Or continue dropping?it means plans to expand production in north america have been delayed until prices rise further. This is likely to cause prices to go up later on depending on supply from other countries but there are delaying factors Canadas Oil sands are even more expensive to develop than US shale and require higher prices to be profitable... On the other hand US Shale requires more regular investment cause fields dont last as long so production could fall faster in the US Canada might see even more cancelations of projects than the US because even fewer projects are economical now than in the US. But because Canadian fields last longer on average once developed, they can keep pumpin oil without investing more money for a while so production wont fall here as fast Its hard to say tho cuz every company and every area has different operating costs. Even some oil sands are still economical now just as some shale isnt. Depends on the efficiency of the company and how difficult the fields they get are :shrug: Link to post Share on other sites More sharing options...
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