Oil companies in Canada, the world’s fifth-largest crude producer, are not showing any signs of cutting down output, despite fuel prices more than halving in the past six months.
Kaiser believes the easiest way to bolster the sector, which exists to provide capital to find and develop new mines, is to abolish Accredited Investor Exemption rules that currently restrict non-rich people from giving money directly to the treasuries of these companies.
It may be difficult to look beyond the current pricing environment for oil, but the depletion of low-cost reserves and the increasing inability to find major new discoveries ensures a future of expensive oil.