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Oilpatch faces project cancellations with crude at $82

Oil spill in northern Alberta.

Oil spill in northern Alberta.

As earnings season approaches, analysts weigh investment prospects for next year

CBC News, Oct 20, 2014

The falling price of oil will likely result in a round of project cancellations and disappointing results in the Canadian oilpatch, analysts say.

As oil companies bring in third quarter earnings, starting toward the end of this week,  they’re facing oil priced at just above $80, down about 20 per cent since June of this year.

Today West Texas Intermediate oil contracts seem to have stabilized at $82.71 US a barrel, down four cents on the day. That’s up from the lows below $80 set last week. Western Canada Select, the price received by many Canadian oil producers, is at $69.10.

“When the price falls to where it is now, certainly a lot of crude oil producers are having a second look at future projects for expanding the oilsands until they see where things shake out,” says Michael Ervin, of petroleum consultancy M.J. Ervin & Assoc. Read the rest of this entry