Dondon:

Unfortunately, oil is interconnected in a supply demand framework which is not independent of the law of supply and demand and marginal production.. To automatically assume that oil consumption will not fall below the level supporting economical consumption of oil sands production, is a sign of product arrogance which may not be supported by the supply/demand metrics of justifiable consumption. To argue otherwise is an arrogance which may not be supported by the unfolding of economic reality. What hapens if Europe and America are hit by a major depressionary event? Do you honestly think that if the US and Europe were to suffer a major depressionary event?, such would not impact demand levels in the rest of the world with attendant major impact for international economic activity? As such, oilsands production considering its positioning as a high cost process for petroleum production would likely fall outside of the justifiable supply/demand cost justification. Just as it did following the crash of 2008 with catastrophic consequences for not only Connacher but, the oil sands in general. Due to the weakened financial position of Connacher and other producers in the sands, it is likely industry survival would be possible for only the strongest capitalized oil sands producers. A category which does not include Connacher!

Brian