Stable supply is more important than low price IMO. Besides, the cost of extracting the Alberta oil will go down as the extraction technology improves.
I was talking to a Canadian engineer who was in Tokyo trying to line up Japanese expertise and investors and he was getting a lot of attention from some powerful companies here.
If I knew my gasoline was derived from Canadian oil sands and not Saudi crude, I would gladly pay $3 a gallon at the pump.
OK Mr Suadi...then put them out of business by dropping the price of your oil to $30.00...otherwise STFU
We passed that up about $40 ago.
what is OPEC actually selling for these days?
Maybe they realize that they have allowed the price to go too high?
I think they need to start bringing more oil to market quickly if they want to stifle the new kid on the block. Once the initial infrastructure to develop Alberta oil is in place, the cost to bring it to market in the US will be a lot less.
The product is there. The need is there. The technology to develop it will follow.
A theory I have, is the US is intent on paying what seems to be expensive prices today, buying overseas, to save our own hemisphere stocks for later. Smart plan, and allows for a very large strategic oil reserve.
This is like me eating my sisters lunch first, then mine. The other way around, I always had to eat my food really fast, and I’d only get about half of hers.
Saudi oil money comes back to us in car bombs and radical jihad. Canadian oil money comes back to us in vacationing Albertans and British Columbians getting medical treatment. Which should we prefer?
When will the US get it’s head out of it’s ASS and drill locally? Screw imports!!!!!!!!!!!!!!!!!!
Just wait...the largest oil field/s in the ME will be in Iraq. The crude will be an extremely high grade. Sunni territory...saddamn wouldn’t open up this area...that’s why the Sunnis’ are against al qeada...exploration companies require no violence...
Exact-o-mundo, my friend. They want us to be vulnerable to extortion. Oil independence is not in THEIR favor.
Well, Saudi oil is certainly much, much cheaper, as long as it lasts. But what does he mean by saying that it is a better investment? The major US oil companies invested in Arabia, and the Arabs nationalized the operation.
So, how is it a better investment to put your money in a part of the world where terror is common, the locals are too lazy to do their own work, and any money you put in will be confiscated?
Sure, you can go and work for the Saudis, and get paid well because it's such an unpleasant place. But invest?
Too expensive for WHOM? Not for them, they’re not buying. I think it is worth it and 20%, just to disengage from the sand-pounders.
Energy independence is one of the most important planks of any war on terror. We shouldn’t have to depend on what some Middle Eastern (or South American) (or Eastern) dictator says to be able to get ourselves to our jobs.
no kidding. anyone with familiarity knows the arabs can put you out of business in the blink of a camel’s lash. thats why we have such a keen interest in the region’s politics.
There is a saying that one should never get in an argument with somebody who buys ink by the barrel.
Similarly, one should never get in a price war with a nation which can produce oil for $2 per barrel. 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.
“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.”
At the rate OPEC is going, Canadian oil will soon be very price competitive.
Ablerta oil sands facilities have gotten the cost way cheaper than that.
There are $150 Billion in new projects are various stages ongoing.
Inventory of Major Alberta Projects
http://www.alberta-canada.com/statpub/albertaConstructionProjects/mpgetem.cfm