Oil war

[chuckChuck]

What's the per barrel cost of new open pit mines in the oil sands?

Integrated oil companies that refine have been doing quite well during the downturn in prices and did not support the production cuts.

But at these prices all bets are off the table.

I bet Albertans and Kenney wish they had a few hundred billions in their heritage fund and a more diverse economy. All that incredible wealth of resources and they can't balance the books when oil prices come down from their peak. Norway is looking pretty good right now.

Even Saudi Arabia has been planning to diversify away from oil over the next decades.

[flea beetle]

What's the per barrel cost of new open pit mines in the oil sands?

Integrated oil companies that refine have been doing quite well during the downturn in prices and did not support the production cuts.

But at these prices all bets are off the table.

I bet Albertans and Kenney wish they had a few hundred billions in their heritage fund and a more diverse economy. All that incredible wealth of resources and they can't balance the books when oil prices come down from their peak. Norway is looking pretty good right now.

Even Saudi Arabia has been planning to diversify away from oil over the next decades.

I bet Norway doesn't have an equalization scheme where the lazy and corrupt part of the nation is given billions while the productive part of the nation flips the bill for said equalization. Had Alberta been able to keep the profits at home, I bet there would be a multi billion $ heritage fund. Instead Quebec gets to say they have a balanced budget because of the handout, and look down their nose at Alberta.

[blackpowder]

We are guilty of poor planning. But Norway comparisons are getting old and are stupid.

[Integrity_Farmer]

Yes some people are in denial but here is an article from the Financial Post October 2018 when west Texas crude was over $70 a barrel

Oilsands bitumen prices are actually in negative territory for the first time ever, analyst says

A financial analyst says prices being paid for Western Canadian oilsands bitumen have fallen so far that producers are losing money on every barrel sold

“It’s not the actual realizations these producers are getting … you’re losing money before you even produce that barrel at current differential levels.”Condensate, a type of light oil often used to dilute bitumen, was selling for about US$63 per barrel in Edmonton on Thursday, which means the bitumen part of a WCS barrel composed of 30 to 40 per cent diluent was actually fetching between negative 11 cents US and negative 28 cents US per barrel, he said.


https://business.financialpost.com/commodities/energy/oilands-bitumen-prices-are-actually-in-negative-territory-analyst-calculates

[TASFarms]

Yes some people are in denial but here is an article from the Financial Post October 2018 when west Texas crude was over $70 a barrel

Oilsands bitumen prices are actually in negative territory for the first time ever, analyst says

A financial analyst says prices being paid for Western Canadian oilsands bitumen have fallen so far that producers are losing money on every barrel sold

“It’s not the actual realizations these producers are getting … you’re losing money before you even produce that barrel at current differential levels.”Condensate, a type of light oil often used to dilute bitumen, was selling for about US$63 per barrel in Edmonton on Thursday, which means the bitumen part of a WCS barrel composed of 30 to 40 per cent diluent was actually fetching between negative 11 cents US and negative 28 cents US per barrel, he said.


https://business.financialpost.com/commodities/energy/oilands-bitumen-prices-are-actually-in-negative-territory-analyst-calculates

Do you know what Condensate is?

[macdon02]

Likely looking at a May low here, no rush to book fuel.

If you guys aren't gonna talk about the 3-2-1 crack spread you have no business talking economics of refining or what's feasible as far as crude. Talk to someone at the hedge desk if you want to know. I don't. Never bet against someone that can thread a needle from 3 miles away.

[oneoff]

"On the contrary. Just because its cheaper doesn't mean I will use more. I am committed to reducing use as much as possible. Lower priced inputs mean higher profits for the farmer. Are you in favour of higher fuel prices and giving more of your profit to the oil companies? Quote

When we miss some of the details of the "big picture"; we don't always see clearly; or maybe it clouds one's perspective.

Apparently you can be in favor of accepting new surface leases at the same time biting the hand of those bad oil companies who you might claim are sustained by government "subsidies".

It's all in how you develop those opinions and rationalize your behavior.

[Oliver88]

Yes, thinking we might have jumped the gun filling the storage tanks. Rack price down 10 cents since then
Oh well...

Diesel fuel price down 13 cents in 2 weeks.