Alberta oil too costly: Saudi official

Calgary Herald ^ | 11/14/07

[Dane]

Alberta oil too costly: Saudi official Energy minister says Middle East a better investment than oilsands Shaun Polczer, Calgary Herald Published: Wednesday, November 14, 2007

Canada is one of the world's costliest oil producers and requires high prices to remain viable, Saudi Arabia's oil minister said in Riyadh on Tuesday, suggesting Saudi Arabia is a better value for investors.

Commenting in Arabic, Ali Al-Naimi noted that the "sands of oil" in northern Alberta need prices to be at least $40 to $60 US a barrel to develop the massive reserves, which are pegged as second only to Saudi Arabia's.

"Today, the price of oil is proper for producers there," he said at a news conference to kick off the third OPEC summit.

"If you can show me that investing and producing a barrel from the sands in Canada is better than investing and producing a barrel in Saudi Arabia, then I would go there, but it doesn't," Al-Naimi said bluntly.

[thackney]

For more information about how much coal is currently moved, from where to where, what it is used for and how it is moved, look at:

http://www.eia.doe.gov/cneaf/coal/page/coaldistrib/2005/o_05state.pdf

[dennisw]

Start with producing more of them and remove President Clinton's designation of a Monument that removed valuable coal resources from being available to produce. I think coal liquefaction will be used more in the future. I see limited use for it to make methane or hydrogen as transportation fuel. It is cheaper to transport coal by rail a thousand miles than it is to wheel the electricity through enlarged power lines.

Agree in all respects.

The economics seems better to transport Western coal to make electric in many cities close to the Montana/Wyoming coal. But some has to do with the near impossibility of getting new power lines permitted

BTW Kansas denied a  new coal fired plant because of global warming. A Texas company killed 6 future coal fired plants. The green traitors despise coal

[Ouderkirk]

Well, that’s not quite true. The Saudi’s accept market value for their oil as defined by the commodities gamblers, but there is nothing stopping them from saying we will take $30 a barrel for oil.

[thackney]

The economics seems better to transport Western coal to make electric in many cities close to the Montana/Wyoming coal.

It is not. Transport by train does not consume the amount of energy lost in electrical line losses.

[bert]

No, the man is issuing sound advice.

[jrsmc]

It doesn't matter where we get our oil, the price is headed up.

Mostly due to the falling dollar which has been printed in excess of demand.

Geopolitical and extraction expenses are only secondary effects.

[dennisw]

No—— I agree with you on train transport

[dennisw]

That is ridiculous. First of all there is more oil "elsewhere" than we ever imagined (see Brazils offshore discovery last week for example). Secondly, by exporting trillions of U.S. dollars to our enemies now--Saudi, Venezuelan and Iranian--we permit them to buy up all of our assets on the cheap and insure that the future will be one of slavery to foreigners.

Lots of Freepers and other Americans don't mind toiling for foreign masters just so long as there are jobs jobs jobs. I remember how various states competed in give aways to Toyota, Honda and others to locate new plants there

Chinese have invested in Blackstone and are trying to invest in a few other American firms who specialize in takeovers& makeovers. China just might start buying up a lot of the USA. Dubai and other Arabs are looking at the same

My solution is to start exploiting our Western coal reserves full throttle.

[thackney]

Mostly due to the falling dollar which has been printed in excess of demand.

The rise in oil prices over the last 12 months have been about 4 times greater than the drop in dollar value.

[Tennessean4Bush]

what is OPEC actually selling for these days?

Oil is a commodity. They sell it at market prices, not significantly more or less.

[Hydroshock]

Exactly, the higher the price the more economically viable do these sources adn alternative energy become. And since oil has been up over $50 a barrel for al but a few weeks since Katrina then they are lookign real good in the long haul.

[HamiltonJay]

Sand oil from CA is nice, but I want to see them tapping the shale oil out west in the US... we sit on one of the largest oil reserve known to man, its right here in the US, but its not been tapped.

[thackney]

Shell has been running a pilot plant for a while in shale oil. A couple others are getting ready to start.

[Red Boots]

At some point the people who are investing in alternative energy schemes are going to find themselves producing product which is not price competitive even with vast government subsidies.

We're already there aren't we ? It's just that nobody will say it. It's the rare article about alternative fuels that even dares to compare prices, and I find those who tout them the most highly generally give you a blank look when asked about comparative costs.

These days are just like the Jimmy Carter debacle days, expect that I'm afraid another Ronald Regan isn't waiting in the wings to bring economic sanity back to the discussion.

[mvpel]

[Vn_survivor_67-68]

futures.....kind of like puts and calls, but no escape unless negotiated.......independent of whatever is paid to the supplier.......I DOUBT if any actual supplier such as saudi etc ever sold a tanker load for $96.00 per 40 gals of crude.

If you can show me that they have, please do....

[Tennessean4Bush]

Sorry about that, I wasn’t sure what you were asking. I have no idea what their margin is off the futures market price. I am sure there is a margin, but I bet it tracks the futures market tightly. I have never been in the oil business, but I have worked in businesses that manufactured commodity products. Our sales people set their prices off the market every morning.

[hawkaw]

And don't forget those folks from Saskatchewan as well in the west.

And in a couple more years watch out for Newfoundland oil really making a splash on its citizens as that province is really turning the corner.

[Landru]

"Alberta oil too costly: Saudi official Energy minister says Middle East a better investment than oilsands...Canada is one of the world's costliest oil producers and requires high prices to remain viable, Saudi Arabia's oil minister said in Riyadh on Tuesday, suggesting Saudi Arabia is a better value for investors...Commenting in Arabic, Ali Al-Naimi noted that the 'sands of oil' in northern Alberta need prices to be at least $40 to $60 US a barrel to develop the massive reserves, which are pegged as second only to Saudi Arabia's."

BWAHAAA!!!!!

~eh, Sheiky?
Don't look now, pal.

...we're *therrrreeeee*. :o)

[rb22982]

There isn’t much available room for SA to up production enough that quickly to really damper prices to anywhere close to even $50 / barrel at the moment.