Oil war

[bucket]

I wonder what bullshit excuses will come out for the price of fuel to stay where it is? Gas at the pumps should be 40 cents a liter by 8 am, if the price of oil went up 30% overnight they would be slamming ladders up against signs immediately to jump prices.

If fuel prices don't drop.....just imagine the price when it gets back to 50 bucks a barrel...gouging and collusion....used to be illegal...

Federated co-op has made a billion dollar profit in each of the last 2 years...which is enough to balance the budget in Saskatchewan...and yet no one questions where that money disappears to....it is not coming back to the people that support them and it's not going into local facilities...poof gone...

[TASFarms]

If fuel prices don't drop.....just imagine the price when it gets back to 50 bucks a barrel...gouging and collusion....used to be illegal...

Federated co-op has made a billion dollar profit in each of the last 2 years...which is enough to balance the budget in Saskatchewan...and yet no one questions where that money disappears to....it is not coming back to the people that support them and it's not going into local facilities...poof gone...

I thought Federated gave $750 million back to the coop branches

[Integrity_Farmer]

You need to learn a lot more about this industry before you are qualified to make that judgement.

These companies often use capital from other operations to subsidize the operation to knock down the initial infrastructure costs. Once those are in line the break even price falls in half.

an oil sands mine has a 40 yr life it's profits multiply in the latter half.

Any one operating up there for more than 20yrs and went thru the price surge 10yrs ago is already in that zone. Suncor and Syncrude have been operating since the 70s.

You honestly think they are losing $30 a bbl and just keep doing it for fun?

Husky Imperial oil and Suncore all refine. I was speaking specifically about the Trudeau taxpayer paid Trans Mountain Pipeline to Burnaby. This pipeline was never economically viable and never will be. Why was it sold to the Trudeau government? Should the taxpayers fund this dog?

[Taiga]

Why was the pipeline ‘not economically viable’ according to you?
Do you believe the same regarding the existing line, of which they are simply twinning?
You realize the pipeline companies simply charge a fee for transmission through their pipelines, to which oil producers had over subscribed to be put on a waiting list to use the pipeline? Contracts signed for 20+ years.
The pipeline company gets paid irregardless of oil prices.
What are you even talking about? It is one of the most basic business models, simple to comprehend. You liberals are so brain dead it isn’t even funny.

[Oliver88]

Husky Imperial oil and Suncore all refine. I was speaking specifically about the Trudeau taxpayer paid Trans Mountain Pipeline to Burnaby. This pipeline was never economically viable and never will be. Why was it sold to the Trudeau government? Should the taxpayers fund this dog?

It was viable....this is why a private company planned to pay 100% of the cost!!!

Trudeau should of stayed the hell out of the way and the private sector would of paid for the pipeline.
He bought the pipeline for virtue signalling his carbon tax and gaining lefty environmentalists voters.

The pipeline is a huge benefit for the Canadian economy and every grain farmer will benefit with oil pipelines by not having the railways plugged up with oil.

[Integrity_Farmer]

From oil sands magazine Factoring in blending and transportation, WTI equivalent costs increase to US$60.52 for SAGD and US$75.73 for a stand-alone mine. Those numbers are down 25% and 16%, respectively. The big jump in SAGD breakeven costs reflect the high price of diluent required to blend the bitumen product. Diluent (typically condensate) trades almost at par with WTI.

Those prices convert to $82.53 to $103.00 a barrel in Canadian dollars Reply With Quote

[blackpowder]

Yes. For profit corporations were playing an elaborate hoax all along just to swindle the govt. Thankfully a decade of buggery by govt has not been as expensive as all that devious development. Time for a Canadian Oil Board. Put those evil corporations in their place once and for all.
I'm sure citizens will rally to the call for higher taxes. But who are they gonna work for??? Today not in 2050.

[Integrity_Farmer]

Factoring in blending and transportation, WTI equivalent costs increase to US$60.52 for SAGD and US$75.73 for a stand-alone mine. Those numbers are down 25% and 16%, respectively. The big jump in SAGD breakeven costs reflect the high price of diluent required to blend the bitumen product. Diluent (typically condensate) trades almost at par with WTI.

CERI therefore concludes that no greenfield oil sands project is economically feasible under the current pricing environment.

However, the author concedes the same could be said for any new oil development around the world, and profitability will improve considerably when (not if) oil prices eventually recover.


Those prices convert to $82.53 to $103.00 a barrel in Canadian dollars

https://www.oilsandsmagazine.com/news/2017/2/9/oil-sands-breakeven-prices-decline-since-2015

[Zephyr]

Factoring in blending and transportation, WTI equivalent costs increase to US$60.52 for SAGD and US$75.73 for a stand-alone mine. Those numbers are down 25% and 16%, respectively. The big jump in SAGD breakeven costs reflect the high price of diluent required to blend the bitumen product. Diluent (typically condensate) trades almost at par with WTI.

CERI therefore concludes that no greenfield oil sands project is economically feasible under the current pricing environment.

However, the author concedes the same could be said for any new oil development around the world, and profitability will improve considerably when (not if) oil prices eventually recover.


Those prices convert to $82.53 to $103.00 a barrel in Canadian dollars

https://www.oilsandsmagazine.com/news/2017/2/9/oil-sands-breakeven-prices-decline-since-2015

Yeah...

Except.

This is CNRL's production costs for in-situ oilsands.





Also the Trans Canada pipeline is over subscribed by 28-36% every month.

Right there is your business case for it being profitable


Any pipe to tidewater or rail line to tidewater is a license to print money

[jazz]

From oil sands magazine Factoring in blending and transportation, WTI equivalent costs increase to US$60.52 for SAGD and US$75.73 for a stand-alone mine. Those numbers are down 25% and 16%, respectively. The big jump in SAGD breakeven costs reflect the high price of diluent required to blend the bitumen product. Diluent (typically condensate) trades almost at par with WTI.

Those prices convert to $82.53 to $103.00 a barrel in Canadian dollars Reply With Quote

You are looking at the numbers wrong. That would be the cost if just some random dude decided to start an oil sands mine from scratch.

These companies have a blended cost of operations just like you do with your first quarter of land vs your last quarter and the all in development costs for many of AB producers are in the $30 USD a bbl range.

From yesterdays NP:

On average, Canadian producers break even pumping oil if the price of a West Texas barrel is somewhere in the high-US$30 range. But that’s an average break-even threshold for an industry with a wide variation in costs; that means at that level about half the companies can’t pay their bills and half are treading water.

You do know that there are literally thousands of individual wells all over Ab and Sk that their production costs would be just about zero? Many have been pumping for 40 yrs. Sunk costs recovered many times over. Gets a workover every decade and a daily visit from a company employee and that's about it.

Either way, govts nor private citizens should be telling anyone what the economics of their venture are. TMX project was 4.5B when they walked. Govt had to buy it and the old pipeline which brought the cost to $7.5B, delays, court challenges added another $2B and the pure incompetence of Trudeau brought the total cost to $12B now. Don't blame the private sector.