Today’s Rout Is a Far Cry From Wildcat Years for Oil Sands
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The collapse in the market for Canada’s heavy crude below $30 a barrel last week is hammering home a harsh reality for the nation’s oil-sands producers: There’s no one to save them this time.
Unlike previous market crashes that were relatively short-lived, the combination of persistent oversupplies and weakening demand are dealing a severe setback to what’s been one of the biggest growth stories in global energy markets. Oil-sands companies such as Suncor Energy Inc. already have been rethinking major developments that can require more than C$10 billion ($8 billion) in investment. Now even existing projects are barely covering costs or in a losing position.