World oil prices have fallen so low that producers in Canada are being advised not to spend any money on drilling and, in some cases, to stop producing crude oil from existing wells.
Benchmark U.S. crude oil prices rebounded Thursday from near-20-year-lows on Wednesday but remained near US$25 per barrel, a level at which conserving cash is the only way to ensure survival, according to a report entitled “A World Without Rigs” from Tudor, Pickering, Holt and Co. “If you believe prices are staying this low forever then we really don’t have an industry, but I think all of us believe there will be a recovery at some point in time,” said report author Jordan McNiven, a Calgary-based analyst, in an interview. “It’s about hunkering down and making