Sentences with phrase «price of oil sands»

Share prices of oil sands players are down by roughly half since the recession and have shown few signs of perking up for the last several years running.

Not exact matches

When the oil - demand peak came, Shell believed, petroleum prices might begin a slow slide, dipping too low to cover the costs of oil - sands production.

The Panel excluded any discussion of the environmental impacts of oil sands development, although they did allow the consideration of increased oil prices generated by the pipeline on the taxes and royalties associated with forecast future oil sands production.

The letter also argues that the chiefs of some of the biggest companies involved in Alberta's oil sands industry have publicly come out in favor of such stricter carbon pricing.

And as the Bank of Canada noted in its policy statement, prices are higher in part because of supply disruptions, including the Alberta oil sands.

The future viability of oil sands projects depends not just on your view of world oil prices — it depends just as much on how these factors evolve, in particular discounts to Canadian heavy products and the Canadian dollar.

First, I want to look at how the changes not just in oil prices, but also changes in diluent costs, discounts for oil sands crude relative to light crude and, in particular, the fall of the Canadian dollar have changed the outlook for new oil sands projects — for those under construction, and for those currently operating.

In order to understand the impact of the oil price crash on oil sands, you need to look at the implications for each of these categories.

If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 - year oil sands project is a lot of risk for less than a 10 % rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.

Here, in part one of three, are my notes on oil sands project viability in this new, low - price environment.

In preparation for testimony before the House of Commons finance committee in Ottawa on March 10, I pulled together some thoughts on three aspects of the impact of the oil - price crash on oil sands projects and policies, and I thought I'd share them with you here over this and the next couple of posts.

Helms also said that oil sands production levels could dip below one million per day before the end of 2016, if prices stay below the $ 50 / bbl.

If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 year oil sands project is a lot of risk for less than a 10 per cent rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.

The extraordinary cost reductions achieved by North American oil and gas companies have likely reached their limit, and any boost in profitability for much of the U.S. shale and Canadian oil sands industries will have to come from higher oil prices, according to a new report from Moody's Investors Service.

The report does envision scenarios in which oil sands development is curbed by a combination of lower oil prices and a lack of pipeline capacity.

The difference between Brent and a barrel of Western Canadian Select, the benchmark price for oil sands product, was even more significant, a fact that had caused considerable hand wringing in downtown Calgary as well as on Parliament Hill.

When prices go up it opens the door to new sources of supply that were previously too expensive to extract (Alberta's oil sands are a case in point).

Oil sands players, as well as U.S. producers in North Dakota, have been clamouring for pipeline approvals, claiming that all of the political foot dragging around pipeline projects weakened pricing power and critically hampered their operations.

As I wrote in my blog over a year ago, («Oil Price Spread Costing Canadian producers big bucks,» November 10, 2011), oil sands producers have been continually getting short - changed for their oil by refineries in Cushing, Oklahoma, where most of the product from the oil sands floOil Price Spread Costing Canadian producers big bucks,» November 10, 2011), oil sands producers have been continually getting short - changed for their oil by refineries in Cushing, Oklahoma, where most of the product from the oil sands flooil sands producers have been continually getting short - changed for their oil by refineries in Cushing, Oklahoma, where most of the product from the oil sands flooil by refineries in Cushing, Oklahoma, where most of the product from the oil sands flooil sands flows.

At the root of today's problem is global demand that is no longer growing quickly enough to support the prices necessary to keep expanding expensive unconventional sources of supply like the oil sands.

The recent surge in growth in North American non-conventional oil production, whether it's light oil from North Dakota or the heavy stuff that comes out of Alberta's oil sands, is made possible by high oil prices, which are in turn linked to world demand remaining robust.

However, it's certainly incorrect to assume that the existence of single pipeline impacts all oil sands supply costs, or that not allowing it would render that oil supply unavailable at any price.

Let me give you a simple example — suppose the marginal barrel of oil globally is, in fact, an oil sands barrel, and so an increase in oil sands supply (i.e. more barrels available at a lower price) would increase world oil production and consumption.

The price of Canada's oil sands crude, Western Canadian Select, trades at a discount to WTI.

Earlier this year, for instance, Western Canadian Select, the benchmark price for bitumen from the oil sands, traded at nearly half the price of Brent crude.

Posted by Nick Falvo under Bank of Canada, banks, budgets, Conservative government, consumers, deficits, economic growth, economic models, economic thought, employment, Europe, exchange rates, federal budget, fiscal policy, household debt, housing, inflation, interest rates, monetary policy, oil and gas, prices, Role of government, social indicators, tar sands, US.

It remains to be seen, therefore, what sort of carbon price signal an individual oil sands operation would be exposed to under the Alberta Plan and whether it will be sufficient to drive technological innovation in the sector.

Alberta's oil sands growth has slowed with the decline in the price of oil and there was stiff environmental opposition in the French - speaking province of Quebec.

The break - even price of tar sands oil is around $ 100 per barrel if transported by rail, according to Anthony Swift, a staff attorney at NRDC (which publishes

If there's a bright spot for the province, however, it's that the ongoing disruption of Alberta oil sands production — estimated by the Conference Board of Canada to be about 1.2 million barrels a day, comprising nearly $ 1 billion in economic activity — has contributed to a rally in global oil prices that could give producers, and therefore the Alberta economy, a badly - needed lift once production is finally back on - line (assuming, of course, the fires are eventually extinguished and oil sands operations escape serious damage).

If the price of a barrel drops too much, future oil sand plans are at risk and modular buildings won't be needed at that point.

The Alberta government received the final report from the independent panel led by University of Alberta economics professor Andrew Leach and announced its plans to phase out coal burning electricity plants, phase in a price on carbon, introduce a limit on overall emissions from the oil sands and introduce an energy efficiency strategy.

How else could she argue, as she did in 2016, that Alberta would not support the federal government's pan-Canadian carbon price of $ 50 per tonne (in the year 2022) unless the federal government first approved an oil sands pipeline to tidewater, while also arguing that British Columbia's proposed oil spill safety measures contravene the federal government's clear jurisdiction over interprovincial pipelines?

The EIA in February reported that Canada pumped an average of 4.5 million barrels a day in 2015, and predicted this would rise to 4.8 million in 2017 as oil sands projects under construction when oil prices began to fall in 2014 come on line.

In a world of falling prices, however, it will be high cost production from shale formations and the oil sands, not the low cost conventional crude from places such as Saudi Arabia and Iran that will be hit the hardest.

That can easily happen in a world of $ 100 oil, because such high prices offer enough incentive for producers to bring on new supplies from expensive sources such as the Bakken or Alberta's oil sands.

The price for a barrel of bitumen, the tar - like oil sands that comes from Alberta, fell to just over $ 8 per barrel this week.

However, the fact that the average quantity of frack sand used per well has more than doubled in recent years — which has helped lower the breakeven price of U.S. shale oil — should help insulate the industry from the worst of the oil crash.

The result is what Marc Lee refers to as an «all of the above» policy — we have carbon pricing and various climate - related regulation, even while committing to significantly expanded oil sands production and promising new bitumen pipelines.

Short - to - medium - term cash flow stabilized by attractive and profitable contracts While demand for frack sand is likely to decline due to the crashing price of oil, there is cause for optimism that the decline in demand might not be as severe as the overall decline in new oil drilling.

After my post last night got me reading Budget 1980 and the National Energy Program, I stumbled upon something completely fascinating: the hated National Energy Program proposed an indexed price for synthetic crude from oil sands projects which, had it been followed until today, would have been above the Canadian dollar price of WTI in -LSB-...]

For every barrel of extra oil taken from tar sands as a result of the pipeline, world oil consumption would rise by 0.6 barrels, as the added production would lower prices (Nature Climate Change, doi.org/t52).

Pres. Barack Obama vetoed a bill to approve construction of the Keystone XL Pipeline on February 24 — not because of climate change, not because of low oil prices and not because of the risks from leaking diluted bitumen from the tar sands.

For every barrel of extra oil obtained from tar sands as a result of the pipeline, global oil consumption would increase by 0.6 barrels, because the extra oil would lower oil prices and encourage people to use more.

Whether such a quantity can be produced from tar sands and oil shale at a price near (never mind below) $ 30 per barrel is highly uncertain, but more suggestive of Lomborgs confusion in any case is that the price he mentions is higher (according to his own Figure 65) than the price of oil has been for any prolonged period in the last 120 years except for 1979 - 86, in the aftermath of the second (1979) Arab - OPEC oil - price shock.3 This means resources of tar sands and oil shale that would be economically exploitable only at prices around $ 30 per barrel are in fact more expensive than oil has been for nearly all of the last century.

Nathan says high prices have made it increasingly economically viable to extract more unconventional forms of oil, in particular the asphaltlike tar sands (also known as oil sand, or extremely heavy crude oil) plentiful in northern Alberta, Canada.

Oil sent on the planned line could supplant much of those imports and give oil sands producers access to high - priced Atlantic markets for the first tiOil sent on the planned line could supplant much of those imports and give oil sands producers access to high - priced Atlantic markets for the first tioil sands producers access to high - priced Atlantic markets for the first time.

Tar sands, deep oil and fracking have severely blunted the oil peak, reduced fuel prices and have actually reduced CO2 because of the natural gas that comes with them.

If the price of a barrel drops too much, future oil sand plans are at risk and modular buildings won't be needed at that point.

With so much of their economy based on oil sands, fracking, and refineries, Canada depends on a decent global oil price in order to be economically stable.