TSX:HSE.PR.B - Post by User
Comment by
smarmyon Nov 16, 2001 9:40am
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Post# 4412891
RE: too simple.........
RE: too simple.........you are spot on, Bigmomma - our Canadian production includes a fair swack of East Coast oil, and Suncor (bless their magnanimous hearts) just announced spending to result in a 150% increase in their tar sands production. Their cost of production is now about $8.00/bbl; in 1986 it was approximately $17.00. Pardon my techno-speak, but that's tons and tons of oil!
It's really simple - supply and demand! Although in this case it has a lot to do with perception of supply and demand. North America can do its part to cut production through voluntary production restrictions on the part of some of the larger producers, or on the part of all producers for that matter (although the small guys' cuts wouldn't contribute significantly).