Shell sells nearly all oil sands interests to CNRL
- Thread starter -lenny-
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catalac
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Seems odd that shell would have a short term approach to oil sands, with 100 year+ reserve and the realization that political landscapes change often long term should be solid.... Guess not maybe (like Trudope thinks) we will be filing up our cars with unicorn dust 20 years from now.
LNG is not going to happen until natural gas gets closer to $8.00 - and the price may never top $5.00 again (just too much around).
After Fort Hills, it could be a long time until the next oilsands project. The long term outlook on oil is weak, not nearly enough to support new investment. There has been 15 plus years of construction, maybe time for a break.
After Fort Hills, it could be a long time until the next oilsands project. The long term outlook on oil is weak, not nearly enough to support new investment. There has been 15 plus years of construction, maybe time for a break.
Caper11
Active VIP Member
We'll probably never see another new open pit oilsands mine again, but in-situ projects will keep popping up, like second and third phases of these projects taking off.
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rightsideup
Active VIP Member
I worked for a power company that serves over 70 per cent of the land mass in alberta including ft mac. Cnrl took over a lot of companies in my career and created a lot of employment they did not seem to make unintelligent engineering decisions as a lot of the us companies would cannot vouch for how they treat there employees but there growth really boosted a lot of other industries and private business and yes other us companies pulled out of canada well before notely's reigh of stupidity. Please vote her out.
Snowdin
Active VIP Member
This is totaly not true. Avg gas production thse days is 10 mmcf/d at $3.00/mcf that is $30,000.00/day. Don't take long to payout with that rate. There are many wells make muych more productin that as well as condy.
DRD
Active VIP Member
Lifting costs are one thing, LNG is another. There currently is no infrastructure to pipeline to a port, liquefy, store, transport to a tanker and ship to overseas markets. We should have started when the Aussies and the Yanks did, we missed the tanker.....
Unicorn dust? Hardly. Have you seen the projections for electric vehicles? It pains me to say it, but I don't think my pre-teen kids are going to be driving gasoline vehicles. Combine that with Trump implementing border taxes to penalize Canadian oil while supporting US shale and new oilsands mines are done.
DRD
Active VIP Member
An average gas well is far from 10Mm/day in production. Only the Best Montney wells are that good and after 1yr they are down by 50% and by the end of yr 2, down to 25%. We do not get $3.00 for our gas either (that is WTI pricing). We get either AECO at about $2 or Station 2 in BC which sold for under $1 for most of the year. There will be no dry gas wells drilled in the near future-they just don't pay (a Montney well costs at least $7Mm). The only wells that will be drilled will be liquids rich (oil or condy). The SAGD or Oilsands do not even cover Operational costs at ($50 oil because they get $35 WCS for the poorer quality-the reason diligent pays a premium to oil in AB).
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Good insitu companies are breaking even at low $30's so all hope is not lost for SAGD guys. Greenfield SAGD can and are being built for $55 WTI, don't forget about the CAD/USD exchange/bonus.
ABMax24
Active VIP Member
Electric cars are still a long way off from mainstream, remember when everyone thought hybrids were the answer and the Prius would take over the world? This still hasn't happened.
Electric cars work great in warm climates when people are satisfied with short ranges per charge. But cold batteries don't work and using battery power to heat the batteries is so inefficient it can't compete with internal combustion engines. Not to mention that we can't pull Lithium out of the ground anywhere near fast enough to replace fossil fuel burning cars.
snowcannon
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skegpro
Active VIP Member
The Glory days in Alberta are gone, I can't believe the grennies took us on our own turf.
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scrfce
Active VIP Member
suncor is even at or around $28 bbl at base plant, so open pit isn't going anywhere either. Now i understand thats because infrastructure is basically paid for but theres a long mine life still, especially with the leases they acquired on the east side of the river when they became the majority shareholder in syncrude. I do agree though that barring a major shift in the oil n gas sectors global environment new open pit mine projects in the oil sands have probably ended with fort hills, and any new investment will be in SAGD and similar processes.
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