Quote:
Originally Posted by fredinno
Oil Sands production is the least profitable and the first to drop off the market.
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The costs include a huge chunk of already spent fixed costs though. For many projects, the marginal costs between choosing to produce 100 million barrels at an existing oil sands plant versus 100 million barrels at an incremental project elsewhere, oil sands wins. Likely even when chasing net zero via carbon capture. The hurdle for new investment is just so high compared to continuing to use an existing asset.
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