He’s bluffing. They can make money at $34/BBL in Canada, and that price is dropping every year.
At these prices, it will be Fortress North America within three years. Europe is looking very seriously at coal conversion rather than oil/gasoline importation.
Stability is a HUGE consideration. Witness the pipeline deal made between Poland and the Ukraine done specifically to bypass Russia.
Countries have had it with these morons.
New slurry hydrocracking technology allows for greater use of hard-to-process heavy crude oil and oil sands bitumen primarily found in Canada, Venezuela and the United States
DES PLAINES, Ill.--(BUSINESS WIRE)--UOP LLC, a Honeywell (NYSE: HON) company, announced today that it has expanded its portfolio of technologies to help refiners produce clean gasoline from heavier crude oil.
UOP’s new slurry hydrocracking process, based on a technology licensed from Natural Resources Canada (NRCan), is designed to upgrade bitumen, a heavy, tar-like, highly contaminated oil derived from oil sands commonly found in Canada, Venezuela and the United States, as well as other heavy, highly contaminated feeds found in other parts of South America and the Middle East.
“As demand for oil continues to grow and light conventional crudes become less available, there are more opportunities to tap a vast supply of heavy crudes,” said Ashis Banerji, director of refining technology for UOP’s Process, Technology and Equipment business unit. “Our new technology allows refiners greater ability to process more difficult crudes and completes UOP’s residue upgrading portfolio. Combined with our hydroprocessing technology solutions, it enables us to offer our customers a complete range of solutions not previously available to help them optimize production while meeting growing demand for ultra-clean gasoline and ultra-low sulfur diesel.”
“The Government of Canada has decades of science and technology experience in developing oil sands technologies to meet the special challenges of upgrading bitumen,” said the Honourable Gary Lunn, Minister of Natural Resources. “Through groundbreaking partnerships, such as this one with UOP, we are taking full advantage of the immense energy resources that lie buried on our own doorstep.”
Oil sands, also known as tar sands, are a mixture of sand, water, clay, and bitumen. The bitumen extracted from oil sands is nearly in solid form, making it difficult and expensive to process into gasoline, diesel fuel and other products, and many of these heavy crude oils contain high concentrations of metals such as nickel and vanadium as well as complex hydrocarbons that make conventional processing methods uneconomic. UOP’s slurry hydrocracking process utilizes a slurry catalyst to upgrade bitumen and heavy crudes to lighter distillates that can then be used to produce clean gasoline and ultra-low sulfur diesel.
UOP’s slurry hydrocracking technology is based on a technology originally developed by NRCan that develops innovation and expertise in earth sciences, forestry, energy and minerals and metals to ensure the responsible and sustainable development of natural resources. It was further developed and proven commercially viable at the Petro-Canada facility in Montreal over a 15-year period starting in 1985. High availability of cost-effective lighter crudes at that time left little demand for the technology, but feedstock availability is now shifting. The volume of non-OPEC heavy crude supplied to the market increased 23 percent between 2000 and 2004 while the volume of light crude oil dropped 10 percent over that same period.
According to the U.S. Energy Information Association, roughly 80 percent of the world’s bitumen is located in Canada. Independent energy industry consultant Purvin & Gertz predicts that bitumen-derived synthetic crude oil production will increase from the approximately one million barrels per day (bpd) produced today to four million bpd by 2015.
UOP’s residue upgrading portfolio currently includes a wide range of solutions to convert petroleum residues to ultra-clean gasoline, jet fuel and diesel. UOP has licensed more than 200 hydrocracking units and residue hydrotreaters worldwide, with more than 120 in production today.
UOP LLC, headquartered in Des Plaines, Illinois, USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywell’s Specialty Materials strategic business group. For more information, go to www.uop.com.
Honeywell International is a $34 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index. For additional information, please visit www.honeywell.com.
This release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
The Brazilians think they have 80 BILLION barrels in their new field off their coast. Looks like the Saudis may have shot themselves in the foot with $95/bbl oil. I’d much rather give the Canadians and Brazilians my money than our enemies in the Middle East.
I would pay 10 cents more per gallon if I could be assured that every penny went to Canada and NONE to Arab vermin or Chavez.
If Canada wants to reject investors and try economic isolation, so be it. First, the oil taxes/royalties scandal, and now this.
High loonie could take bite out of economy, Bank of Canada warns
http://www.theglobeandmail.com/servlet/story/RTGAM.20071114.wjenkinsstaff1114/BNStory/Business/columnists
UPDATE 1-Canadian dollar sags after Jenkins speech
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-11-14T175429Z_01_N14178572_RTRIDST_0_MARKETS-CANADA-DOLLAR-BONDS-UPDATE-1.XML
Uh...and just why is he bringing this up? Fear of competition, maybe? The last thing they want is for the US to get oil from Canada instead of Saudi Arabia, so they’ll say anything to discredit the Canadian oil industry.
I swear...oil, money, Arabs, and Islam has got to be the worst combination of things possible to exist within one country.
K*ss emeq to the Saudis. Let them go back to cooking their food over camel shi’ite..
Require prices between $40-60 a barrel. Hell, we are at $100 now.
Has the sheik checked the price of a barrel of oil lately?
Noticed yesterday, that Honda will begin leasing the first production all-hydrogen fuel cell car next year in America.
Hydrogen is after all, what?
A really good ... battery. Perhaps the formula isn’t as simple as whether this oil or that oil, is cheapest.
Perhaps the world is moving toward the actual sale of energy itself, in the *form* of hydrogen.
Could it be, we will import energy from the national grid of efficient nuclear power plants running the country of ... our new friend Sarkozy.
In of all places. France. :)
and this internet thingy will neeeeever take off...
No, the man is issuing sound advice.
Mostly due to the falling dollar which has been printed in excess of demand.
Geopolitical and extraction expenses are only secondary effects.
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.
BWAHAAA!!!!!
~eh, Sheiky?
Don't look now, pal.
...we're *therrrreeeee*. :o)
Saudi oil is possibly as much as $10 a barrel to lift. Oil sands are $40 a barrel to produce. How's the profit margin?
Well then how fortunate for Canada that the OPEC gang and the inability for any ME nation to have a stable and sane populace have driven the price to nearly 100$ a barrel..
BTW Oil is fungible so while you may not make as much on the investment in canada to consumers its all the same.. And some of the extraction cost has to be worth stability