Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: thackney

Glad to see that Canada is thinking ahead. Of course, they have a vested interest in doing so since oil is one of their biggest exports. Obviously, they see demand rising and want to be ready for it. $150 billion is not a lot of money considering the price of oil and the demand. Two offshore drilling rigs cost $1.5 billion. And the Saudis pump 8 million bbls a day. Even at $90 a bbl that is $720 million a day in sales.


65 posted on 01/24/2008 1:54:09 PM PST by kabar
[ Post Reply | Private Reply | To 64 | View Replies ]


To: kabar
$150 billion is not a lot of money considering the price of oil

Can you name a single area in the world of comparable size getting more?

Two offshore drilling rigs cost $1.5 billion.

Continue that comparison. There are 59 offshore oil rigs working in the US. If your price is correct, that is 340% more being invested in the Alberta oil sands than all US operating offshore drill rigs in operation. Or more than 2/3's the rest of the world's offshore drill rigs being invested in one area.

http://www.bakerhughes.com/investor/rig/excel/US_Rig_Report_011808.xls

http://www.bakerhughes.com/investor/rig/excel/International_Rig_Count_December_2007.xls

The industry is greatly willing to invest in places that give reliable access to resources. This is a huge amount and it is because of the willingness of Canada government to work with the industry. Canada as well is investing in large infrastructure expansions to support the growing business and residence expansion in the same area due to job growth.

66 posted on 01/24/2008 2:10:56 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 65 | View Replies ]

To: kabar
Let me give you another demonstration of the size of that investment. Back almost 2 years ago when they were only anticipating $100 billion in investment, the anticipated worker shortfall was estimated to be 350,000 for the area.

Oil sands take over center stage
http://www.petroleumnews.com/pnads/265124051.shtml
Conference Board of Canada bets on C$105B in upstream, upgrader spending over 10 years; by 2008 annual spending at C$15 billion; worker shortfall could hit 350,000 by 2025

67 posted on 01/24/2008 2:19:51 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 65 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson