THeBlueCashew

Quote from: "Gary Oak"EU is a pansy that moves boxes for a living. He does not know anything about business and industry. PU hates Canada and loves Muslim slime.

Why Canadian oil producers will buck the descent in prices

http://business.financialpost.com/2014/10/01/why-canadian-oil-producers-will-buck-the-descent-in-prices/

Quote from: "Azhya Aryola"Alberta is da bomb! ac_biggrin

Quote from: "Azhya Aryola"I hope to see the northern areas some day, Shen.  ac_cool

Quote from: "Azhya Aryola"Alberta is da bomb! ac_biggrin

Quote from: "Fashionista"

Quote from: "Gary Oak"EU is a pansy that moves boxes for a living. He does not know anything about business and industry. PU hates Canada and loves Muslim slime.

Why Canadian oil producers will buck the descent in prices

http://business.financialpost.com/2014/10/01/why-canadian-oil-producers-will-buck-the-descent-in-prices/

Gary, his handle is EU and he is partially right about what he is saying..



My husband is an electrician and a field superintendent for an oilfield service company that supplies the electrical systems for drilling rig top drives..



They don't  have Fort McMurray customers, but they have customers in South East Alberta, Saskatchewan, North Dakota,  along the foothills of Alberta, North East BC, Newfoundland and on every continent as well..



They are already feeling international sales especially drop..



They have frozen hiring and will probably lay off electrical apprentices if declining sales continue much longer..



My husband will not be laid off, but he will not get a raise or receive a bonus it this continues much longer..



He was supposed to go to Norway 10 days ago, but their customer there cancelled the sale because of declining prices for oil in that country..



My husband says the Fort McMurray bitumen will be able to last out the price decline because they are on longer term contracts, but conventional oil like my husband's company does, relies on short term capital spending and it is being slashed right now..



This will have an affect on my job too if low revenues remain for a while..



Provincial civil servant wages and hiring will be frozen too..



We are moving towards some difficult times, but we have been there before..



I hope other people are able to cope with this downturn as well as we will and have in the past.

Quote from: "reel"
That said, EU is not wrong in that the production cost of the oil sands is substantially higher per barrel than many conventional means of extraction, so a drop in price makes many projects infeasible.  Offshore is similar.  They are the first to slow down growth and development when prices drop, which doesn't affect operations so much, but does affect new capital expenditures, so growth, acquisitions, etc. will also be affected in the oil sands.

Quote from: "Shen Li"

Quote from: "reel"
That said, EU is not wrong in that the production cost of the oil sands is substantially higher per barrel than many conventional means of extraction, so a drop in price makes many projects infeasible.  Offshore is similar.  They are the first to slow down growth and development when prices drop, which doesn't affect operations so much, but does affect new capital expenditures, so growth, acquisitions, etc. will also be affected in the oil sands.

Reel, I love ya dude, but I think you are giving far too much credit to an idiot who accepts everything posted by his union on the lunchroom BB as gospel truth. Anywa, he was not talking about our costs, but the discounts we receive on all grades of oil in Western Canada.



Too many people see pics of an aging open-pit Syncrude mine with a huge upgrader beside it and say ah ha, that is the "tar sands". Nothing could be further from the truth. In fact, that part of the Athabasca oilsands is going the way of the t-rex. There are so many different ways of extracting bitumen now that have reduced our environmental impact and improved our bottom line. In 2007, Shell reported profits of $21.75 per barrel from the oil sands. Its average worldwide profit from crude-oil production was $12.41 per barrel. It has only gotten better since then. I could give you so many more examples too if you are interested and even from my own facility near Cold Lake.



I actually welcome a lull in development to bring our labour costs under control.  As you mentioned Norway, we are experiencing the same cost pressures here. A period of slowing expansion in new activity would do the industry a lot of good.

Quote from: "Obvious Li"this current price drop is a result of many factors..



1. worldwide demand has dropped dramatically as a result of the global downturn...especially in Europe

2. As a result of shale oil technology and fracking in the USA they now produce enough to satisfy their domestic need coupled with the fact domestic demand for world oil peaked a couple of years ago.

3. Middle eastern OPEC producers are forcing the price down to make the shale gas and oil industry in the USA unprofitable or marginal at best to force a lot of those producers out of business

4. Canadian oil sands production is increasing at the same time all these other events are occurring



SL is correct in her points regarding the loss of funds due to lack of pipeline capacity from Alberta to tide water....cost of production has dropped dramatically in the oil sands...the biggest problem we have in NA is lack of refinery capacity and delivery systems (pipelines)...the cost to refine a litre of gasoline is the reason the price is so high..not getting it to the refinery.....unfortunately there is a segment of society that would be quite happy to see the price of a litre of gas at $6.00.....sick fucks

QuoteCrude oil isn't flowing but hyperbole certainly is.



Last week, the U.S. House of Representatives gave its blessing to the long-delayed multibillion-dollar Alberta-to-Nebraska segment of TransCanada's Keystone XL pipeline — the ninth time this has happened.



The saga returns to the Senate, with a vote scheduled Tuesday. If approved there, the matter returns to the desk of U.S. President Barack Obama, whose consent is required because the pipeline project crosses the international boundary.



He raised eyebrows Friday, when he appeared to suggest he would not approve the pipeline no matter what Congress says. "Understand what this project is: It is providing the ability of Canada to pump their oil, send it through our land, down to the Gulf, where it will be sold everywhere else," Obama said during a visit to Myanmar before attending this weekend's G20 summit in Brisbane, Australia.



He previously questioned the project's ability to create permanent jobs, reduce gas prices and generally be good for Americans' pocketbooks — implying Keystone would do none of those things.



What Obama said Friday is true ... except he left out a lot of other truths.



On what the pipeline will carry, he neglected home-grown benefits from Keystone's northern segment, which would help carry Bakken oil to refineries in Louisiana — both boons to the American economy. Besides, domestic energy production is a central plank of Obama's administration, with its All-of-the-Above Energy Strategy touted as a means of making the U.S. "more energy independent" while "supporting jobs" — including those related to fossil fuel.



Obama has backed not-so-green jobs in the past.



This summer, he exhorted Republicans to join Democrats to support the Highway Trust Fund as a means of keeping hundreds of thousands of people employed.



Is the quality and longevity of road construction jobs any better than those opportunities generated by Keystone?



The White House trumpets the revival of the U.S. auto industry as one of its success stories. Last time I checked, Cookie Monster's zero-emissions, imagination-fuelled vehicle isn't really a thing. So building roads, bridges and cars is good, domestic fracking and extracting Bakken crude is good ... but Keystone is bad.



Obama's recent musings only inflated Keystone's already overrated impact on the environment.



This lone pipeline has become the symbol of an oil-addicted, self-destructing world. Blocking it is seen as a step in warding off imminent environmental disaster.



It has yet to be demonstrated how Keystone's construction or cancellation would alter the behaviour of consumers — the individuals whose choices are the real drivers of energy consumption and the resulting greenhouse gas emissions.



The hyperbole doesn't stop at the border: Canadians mustn't succumb to overstatement, either.



Keystone is not a panacea.



A direct pipeline to the Gulf would make it easier to close the gap between the price of West Texas Intermediate and Western Canada Select.



But even without a pipeline, the price of oilsands crude has been slowly rising as firms found other methods to move their product to market.



Given the recent drop in world oil prices, the discount for oilsands crude is now only about 10.5%. A year ago, the discount was almost 34%.



And it's worth noting a new pipeline to the U.S. would do nothing to address how Alberta manages the money it receives from its immense oil wealth.



Whether Keystone's a go or no, it won't be the end of the world.

http://www.edmontonsun.com/2014/11/18/talk-cheap-on-pipeline