An Ode to FAR....., page-94

My guess will be POO rises first. Cost to extract oil from Canadian sands is around $90 a barrel yet Suncore have offered in the vicinity of 6 billion dollars to buy more oil sands and this with them only getting $8 a barrel currently due to lack of storage.

Can you guess where Suncore believe the price will be going when they are making acquisitions where they can only turn a profit above $90?

USA offshore is only profitable above $57 and shale above $73. Note that these are averages and there are cheaper oil plays but what do you think that means for the most expensive plays?

A lot of companies are extracting oil even though it's not economical to do so because once the operation is shut down it takes enormous capital to restart. So they are still producing but HOPING that someone else is in worse financial position and blinks first.

None of this even takes into account the 380 billion worth of project that have now been delayed a minimum of 10 YEARS!

Those that have capital and survive will reap great financial rewards for years to come.

I'm hoping that little old FAR will be among them.