We continue to consume over 90 million barrels of oil a day and the outlook for 2016 is that we will consume even more. That said, the world's oil industry continues to produce more. Major world events that, 20 years ago would have caused huge spikes in the price of oil, barely register. While North American production will continue to drop over the next twelve months, due to strong downward pricing pressure, other lower cost producers will continue to fill the void, resulting in little change to the price of oil. There will be some significant consolidation in small oil producers and service companies here in Alberta, in the hope that being larger will allow them to wait out the price collapse.
Simon Batcup (click to see Simon's profile)
Principal
