Peak Oil

$19 Billion Oil Merger Bid

By RTH Staff
Published March 24, 2009

A lot of ink is being spilled over Suncor Energy's $19.1 billion share-swap bid to buy Petro-Canada, which is part of a longer trend of consolidation in the oil industry over the past decade.

For Suncor it's a chance to diversify as its oilsands assets struggle to break even with oil trading at less than $50 a share. For PetroCan it's a chance to shake off a decade-long sluggish market performance.

The new firm can take the next couple of years to consolidate its operations and find efficiencies so it will be ready to scale up its oilsands operations once the economy comes out of its funk.

It's entirely conceivable that oil will exceed $200 per barrel during the next growth cycle and predictable run-up in prices, as rising demand once again strains against a production rate limited by the hard geological realities of peak oil.

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By Frank (registered) | Posted March 24, 2009 at 12:07:42

I fail to see the correlation between the two pieces of information... Two articles in one?

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By seancb (registered) - website | Posted March 24, 2009 at 12:29:11

what two pieces?

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By surfing analogizer (anonymous) | Posted March 24, 2009 at 14:56:11

@Frank ...seems clear to me, Suncor is trying to position itself to ride out the next two years then ride in on the oilsands wave once the economy takes off again.

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By Frank (registered) | Posted March 24, 2009 at 15:12:21

It might make sense but the two ideas aren't properly tied together. Just worded weirdly I guess.

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