Lightstream Resources Ltd. LSTMF

Oil sands production

[whitehorn1]

There has been lots of talk of upcoming production being added in 2017 i.e. 500-800k bopd from projects that are currently in development from the oil sands. Now there are interesting scenarios from this from my experience in the forest industry when that sector hit a serious downturn in 2008. The oil companies may prolong the development by a couple of years i.e. 2019 and could look real smart if oil prices recover significantly. As building in the downturn and ready to go in better times. However, the other side of the story is if prices remain below 50 dollars at that time, those projects although finished will most likely get commissioned for a year then could be shut down i.e. mothballed till better economic conditions. For instance, lots of input capital is still required for those factories/plants and the per minute cost of production may be better to sideline i.e. costs too much money to run. Seen it in forestry, where brand new mills i.e. 250 million dollars were sidelined for 5 years or dismantled. Anyways, it is not a given that extra production will be put into the mix in 2017 contrary what all the "analysts" believe is written in stone. It will definitely be survival for lots of companies over the next couple of years and who can produce oil the cheapest.