RE: RE: RE: Potential earnings @ full productionIf these guys are so smart, then why don't they include the oil to gas price ratio which is above 20!!! When oil was at $150/bl and gas was $12 mmbtu, profits weren't that much better than they are now.
Everyone looks at oil prices to compare oil company profits. Now if you're running a bunch of diesel burning equipement, then ok, maybe. SAGD is another story....operating costs are not only tied to oil prices but are also directly related to nat gas prices. And all upgraders need to crack and make hydrogen and consume copious amounts of natural gas......or syngas.
Oil producers aren't stupid, they know what kind of profits they are making right now and the making is good.
I'd take that article with a grain of salt.
Giver