RE:RE:RE:Sustaining Capitalhimmler wrote: That would depend on how you reached those numbers.Last year I recall some talking heads on BNN say that SU needs only $30bbl to break even..people forget to include its refining capabilities.I can believe that as its still the only oilco actively and openly pursuing aquisitions.The point is the market is so convoluted that not much makes sense anymore.E.g.. last week the world was coming to an end in oil because of china...today thats yesterdays news only to be replaced by the latest ..and greatest...that China never had anything to do with oil,neither did Iran,or the Saudis,or supply and demand.....DRUM ROLL PLEASE......IT WAS THE EVIL AMERICAN DOLLAR......DRUM ROLL STOP.!!
My guess is we settle at $30 bbl...WHY?...because its a nicer round number that sounds good .And thats about as accurate a guess as any experts LOL.
That's true. I think Steve Williams said $40 a barrel would be what they needed to make a profit if you include down stream operations. But I don't think that will effect the declines we will now see market wide. I personally feel Suncor is making acquisitions because of their share price. Suncor is trading at about 3x BNK per flowing barrel. I'm actually sitting here wondering how exactly Suncor will fund their Capex of 7 billion at 31 dollar oil. I think bnk is in a favorable position with low debt and has extreme leverage to oil for when we get a rebound later this year.