News, Market Trends & Updates

From Dynalloy Industries, Inc.

Decreased Capital Spending in the Oil Sands

Bad news, good news coming out of Canada.

The bad news, according to FuelFix, capital spending in the oil sands is being decreased due to the decreasing price of oil.  While this is not good news for continued growth of the region, which has both Oil and Gas and Mining influences, it has little effect on the daily operations of the area.

Which brings us to the good news:  Existing mines and oil production will remain at current capacity.  Simply put it is more expensive to shut them down.  Running them at the break even point or reducing shifts strengths to lower the break even point is the economical option.