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For Canadian Oil Sands Itís Adapt Or Die
Oilprice.com ^ | 17-09-2015 | Albert

Posted on 09/17/2015 3:11:24 PM PDT by bananaman22

That low oil prices are squeezing out oil sands producers is not breaking news. But in spite of a grim oil price outlook, production out of Calgary has continued to grow, defying both expectations and logic. The implications are serious, not just for the future of Canada’s energy industry and economy, but also North American energy relations.

In June 2015, the Canadian Association of Petroleum Producers (CAPP) revised down its 2030 production forecast to 5.3 million barrels per day (mbd). A year earlier the group predicted Canada would be able to produce 6.4 mbd by 2030. This is compared to the 3.7 mbd produced in 2014. Most experts agree that capital intensive oil sands projects are marginal – if not loss-making – in the $45 – $60 range. Yet production continues apace.

Of course, the nature of capital intensive operations such as the oil sands is that they are also prohibitively expensive to shut down. Producers are left in limbo, praying that prices will rise.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy
KEYWORDS: canada; energy; epa; globalwarminghoax; methane; oil; oilprice; oilsands; opec; petroleum; popefrancis; romancatholicism

1 posted on 09/17/2015 3:11:24 PM PDT by bananaman22
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To: bananaman22

there is no death.

the province is rich in resources, and will do just fine.

short term problems abound, but over the longer term, they can have the largest oil field in the Americas.


2 posted on 09/17/2015 4:37:16 PM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: bestintxas

It’s not enough to have lots of oil, you have to be able to get it to market too.

Environmentalists figured that out, that why they manage to bog down any new pipeline proposals in years of red tape.

This type of economic extortion has to change for North American energy to grow.


3 posted on 09/17/2015 5:00:46 PM PDT by canuck_conservative
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To: canuck_conservative

In time, all that will be overcome.

Resource rich areas will always be able to prosper over the longer term.


4 posted on 09/17/2015 5:24:50 PM PDT by bestintxas (every time a RINO loses, a founding father gets his wings.)
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To: bananaman22

Just two years ago Goldman’s commodities expert predicted$150 oil. Today he predicted $20 oil and a glut for the next 15 years as from 1986.

The experts seem to be consistently forecasting the current conditions.

IEA and EIA data both suggest production will fall below supply in the next year. Their production forecasts look optimistic and the consumption looks pessimistic since they are both mostly a forecast of the present.

I doubt Goldman is correct and I don’t trust them at all.

I’m losing interest in the whole affair. I’ll ride it out another year and then plan on going to he farm for good.


5 posted on 09/17/2015 7:10:55 PM PDT by Sequoyah101 (It feels like we have exchaned our dreams for survival. We just have a few days that don't suck.)
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To: bananaman22; Squawk 8888

BTTT.


6 posted on 09/17/2015 11:46:38 PM PDT by Tolerance Sucks Rocks (Democrats and GOP-e: a difference of degree, not philosophy)
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To: bananaman22; Clive; exg; Alberta's Child; albertabound; AntiKev; Byron_the_Aussie; ...

Canada Ping!

7 posted on 09/18/2015 8:11:30 AM PDT by Squawk 8888 (I don't run; if you see me running, you should run too.)
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To: thackney

Petro Ping.


8 posted on 09/18/2015 8:45:11 AM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: bestintxas
Resource rich areas will always be able to prosper over the longer term.

I suspect a decade or two ago, the coal rich areas thought the same.

9 posted on 09/18/2015 8:51:44 AM PDT by thackney (life is fragile, handle with prayer)
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To: Army Air Corps

From the article:

One way to ease an oversupply in the U.S. - and make room for even more Canadian crude - would be to reverse the outdated crude oil export ban.

- - - - - -

Very true. Importing their cheap heavy crude while exporting our expensive light sweet from Shale keeps us with dependable supply and a positive trade balance in the exchange.


10 posted on 09/18/2015 8:53:11 AM PDT by thackney (life is fragile, handle with prayer)
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