Canada’s biggest oil-sands miners say they’re not cutting production, even with oil at less than $50 a barrel, and they won’t need to in order to reduce costs.
The companies have already invested billions in upfront costs to create the massive industrial complex needed to produce oil, according to The Wall Street Journal. In order to maintain production in the United States’ shale formations, producers must constantly drill new wells. But once an oil-sands site is developed its production will remain steady at tens of thousands of barrels, and possibly even hundreds of thousands, each day.
Canadian Natural Resources Ltd. reported Monday it will reduce spending on new projects because of low prices, but the company expects overall production to increase by 7 percent over 2014.