Decline in oil prices still no major threat

The further slide in world crude oil prices has prompted speculation that Canada's booming energy sector may soon swing into reverse, dragging the economy under with it. But even if oil prices remain at current levels, that would still leave them above the marginal cost of domestic production (in the range of US$60 to US$80 per barrel). Consequently, we think prices would have to fall further and remain low before posing a dangerous threat to economic prospects.