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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (6869)	2/16/2005 1:21:14 PM
From: Gulo	Read Replies (1) \| Respond to of 23958

The oil in the ground is all bitumen, a very heavy (8 API) sour crude. In fact, it is heavy enough that the oil sands can be (and have been) used to pave roads as-is. Many of the projects either upgrade the bitumen to a light sweet synthetic crude (aka syn-crude) with on-site upgraders or they ship the bitumen to upgraders farther south. For example, when Syncrude Canada Ltd lists operating costs of $CDN18/bbl ($US14.50/bbl), they are referring to their production of Syncrude Sweet Blend. Syncrude sweet blend is sold at higher price than West Texas Intermediate. Bitumen itself sells for about $10/bbl less than regular crudes in Western Canada. The following presentation reviews the economics of non-conventional oil (mostly oil sands). It is a year old and uses dated 2002 numbers, but the gist is the same. "Oil price <$15 would blunt non-conv. supply". I'm not worried about $15 oil any time soon. iea.org -g