Interesting article. The price of cheap gas. $60 to $80 a barrel will cause a lot of budget cuts, lay-offs, and reduced royalties for Alberta, BC, Sask, and NL, NB. Not to mention the impact in the USA where they've increased production by over 3 million barrels a day, due almost exclusively to shale oil (and all that 'fracking'). Those wells have a break even point of $80 to $100 a barrel. The Oil Sands have similar break even pricing. I expect foreign nationals will use the opportunity to buy an even bigger piece of the Canadian oil industry as oil company shares fall.

OPEC will keep the prices down to curtail development of competition. Sure hope the rest of the economy picks up the slack. Low dollar, low fuel prices, no excuses. Are you listening Ontario & Quebec? Time to quit whining about Alberta and get after it ... Please ...

Then again, the Feds will bail out any Canadian oil companies like they did with the big manufacturers in Ontario. Right?

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Arab OPEC sources see oil back above $70 by end-2015
December 23, 16:57
Saudi Arabia's Oil Minister Ali al-Naimi talks to journalists before a meeting of OPEC oil ministers at OPEC's headquarters in Vienna November 27, 2014.Arab OPEC producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year as a global economic recovery revives demand, OPEC delegates said this week in the first indication of where the group expects oil markets to ‎stabilize in the medium term.The delegates, some of which are from core Gulf OPEC producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon. Once deemed a fair price by many major producers, $100 a barrel crude is encouraging too much new production from high cost producers outside the exporting group, some sources say, reuters reports.But they believe that once the breakneck growth of high cost producers such as U.S. shale patch slows and lower prices begin to stimulate demand, oil prices could begin finding a new equilibrium by the end of 2015 even in the absence of any production cuts by OPEC, something that has been repeatedly ruled out."‎The general thinking is that prices cant collapse, prices can touch $60 or a bit lower for some months then come back to an acceptable level which is $80 a barrel, but probably after eight months to a year," one Gulf oil source told Reuters.A separate Gulf OPEC source said: "We have to wait and see. We don't see 100 dollars for next year, unless there is a sudden supply disruption. But average of 70-80 dollars for next year yes.The comments are among the first to indicate how big producers see oil markets playing out next year, after the current slump that has almost halved prices since June. Global benchmark Brent closed at around $60 a barrel on Monday.Their internal view on the market outlook will provide welcome insight to oil company executives, analysts and traders, who were caught out by what was seen by some as a shift in Saudi policy two months ago and have struggled since then to understand how and when the market will find its feet.Iraqi oil minister Adel Abdel Mehdi told Reuters in an interview on Monday he thought prices would stabilize now at about $60 a barrel but could rise to over $70 by mid-next year."I believe that m‎arket has started to stabilize itself now," Falah al-Amiri, head of Iraq state oil marketing SOMO told Reuters in Abu Dhabi. "‎The future for next year, I don't think there would be much optimism in the market that the price would go to $80 or above. But I don't even think prices would reach $80," said Amiri, citing a resilient shale oil production to current prices.

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Note that I appreciate the low gas prices as much as the next guy. Just wish the local gas stations would get with the program. Gas in Salmon Arm is still 105.9. 60 miles away in Kamloops it's 94.9. Diesel is still 129.9 in most places in Salmon Arm.