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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