Alberta Oil Patch producers face tough times ahead Energy Aspects Analyst

Alberta Oil Patch producers face tough times ahead; Energy Aspects Analyst by News Staff Posted Jan 6, 2015 7:46 am MDT One oil analyst says most, if not all of the Alberta Oil Patch producers are no longer breaking even, and it’s all thanks to the plunging price of crude.Energy Aspects analyst Virendra Chauhan says oil has fallen below the profitability threshold for most producers.Chauhan tells 660news things are not expected to improve until the end of 2015, at the earliest.“Do we go back to a hundred dollars per barrel by the end of the year, probably not,” he said, “it’s looking more like an 18 to 24 month play.”But, it’s not all doom and gloom.“You have to make the investments today, in order to get the oil out in three or five years’ time,” Chauhan said.Experts say industry investments today will likely be popular in the hope they impact longer-term supplies.The U-K based analyst adds some in the patch need $70 dollar per barrel oil just to break-even, “cash flows are under pressure, earnings are under pressure and so it’s fair to say it’s going to be a challenging six to 12 months for producers.” AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email

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