Monthly Archives: January 2015

How Much Control the Middle East Can Have Over North America

January 27, 2015 1 Comments

We often hear about the United States entering Middle Eastern countries and utilizing force, but the forces at play in the opposite direction can be overlooked. The Middle East has sent a clear economic message to the United States and Canada by pressuring commodity prices which have far reaching effects into other areas of the economy. OPEC has majority control over oil prices in the current market, and can largely affect US drilling by keeping prices down.

Read more on some of the global forces at play in the current oil and gas market on Rigzone.

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Does Geographic Area Matter When Selling Oil at Depressed Pricing?

January 18, 2015 2 Comments

According to a recent article on Rigzone, Bakken area producers (North Dakota) need oil prices around $55 per barrel to sustain production. In comparison to other high-producing locations, however, the Bakken area is in a relatively cheap and easy geographic location to produce oil. Northern Alberta and Northern British Columbia’s crude production is held hostage financially simply because of geographic considerations, not to mention the oilseeds of Fort MacMurray.

Oil Price Needed to Break Even in Alberta/BC Geographic Area

So, if the Bakken area needs a price of $55 – what would Albertan and British Columbian oil producers need to see price-wise to break even at current production levels? Share your thoughts below.

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