costs $40-60/bbl to produce oil from tarsands....Energy and resources is such a big part of canadas economy that im wondering what will happen to canada and their dollar...
i can see a 70c. dollar. government unrest, plunging commodity prices...which will only get worse. recently this week the us markets rallied, but tsx didn't. don't see any upside til after jan. when government/parliament reconvenes. we presently, have no plan to deal with the recession.
Tar sand costs fell below 40 because natural gas which is their highest operatin cost has gone down as well They still make money but not as much
Current production is probably ok above $35, but at those prices my understanding is virtually all new development comes to a screeching halt. A number of projects have already been cancelled, a pattern repeating in mining. Commodity bears do quite a number on the Canadian economy.