Oil Sands Exec: Industry "Death Spiral" Unless They Can Cut Costs Even More

[hatrack]

As the world’s oil glut continues to build, wiping out hopes of a price recovery, the head of one of Canada’s largest oilsands operators is warning the industry faces a “death spiral” if it doesn’t figure out how to cut costs.

Speaking before the Chamber of Commerce in Fort McMurray, Steve Laut, president of Canadian Natural Resources Ltd. (CNRL), said oilsands companies can still return to health, but only if they aggressively begin to cut costs.

Costs have risen so far, so fast that oil producers were making three times as much profit in 2004, when oil was at $40 a barrel, than they were a few years ago when oil was at $100 a barrel, Laut said, as quoted at the Globe and Mail.

Laut’s call for cost cutting may be seen by some as a prelude to layoffs and project cancellations, but so far North America’s oil industry is largely maintaining production levels.

EDIT

http://www.huffingtonpost.ca/2015/02/20/oilsands-death-spiral-laut-cnrl_n_6721664.html

[Panich52]

1. I've a great way to cut costs: leave the super toxic crap in the ground

[djean111]

2. The costs cut will be manpower and safety. As usual.

[hatrack]

3. And I'm sure they're working on ways to cut pipeline construction costs!!

[on point]

4. And environment of course

[hunter]

5. I suggest euthanasia.

It's time for this industry to die.

Pay off the workers and clean up the mess.