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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (49866)	5/9/2009 4:20:49 PM
From: energyplay	1 Recommendation Read Replies (2) \| Respond to of 219713

One of the possible negatives for tar sands, is the Bakken Shale in North Dakota, Montana and Saskachewan. The Bakken is becoming a good oil producer, and this supply sits between Alberta and refineries in the rest of the US. Right now, the Bakken is a minor factor - less than 2 % of tar sands. I am assuming we will see even more development of fracking technology. I think that's a reasonable assumption. If the Bakken supply increases faster than pipeline capacity can be added, the Bakken and tar sands crude will compete for pipeline space, pushing down prices. More pipeline capacity going West for export would really help avoid this situation. The part of Bakken in Canada is not as deep, and is thus cheaper to drill. Rigth now, the Bakken is a moderate size play, nowhere near as big as the tar sands. But the development of the Bakken with fracking is early. Either improved production technoloy or finding more areas with high permabitlity could send production very high. en.wikipedia.org Nice article on the economics in the oil drum. Toward the end of the article there is a chart showing the ramp in production- theoildrum.com A later article (January) with some romanticized hype - seekingalpha.com