Americans call oilsands oil useless

[maryjane48]

Last year, U.S. energy firms wrote off 8.2 billion barrels of foreign oil as no longer economically feasible, thanks to low oil prices. Of those, 7.7 billion were in Canada’s oilsands.

That’s according to a new briefing note from the U.S. Energy Information Administration, which tracked the proved oil reserves of 68 publicly-traded U.S. energy companies. (That doesn’t include such privately-held giants as Koch Industries.)

“Proved reserves” are those which it makes financial sense to extract. When oil prices drop, some of those proved reserves become unaffordable for producers, and they write off those assets — at least until prices pick up again.

Canada saw by far the largest write-down among U.S. companies’ holdings of foreign oil.


http://m.huffpost.com/ca/entry/17060168?ir=Canada

[f/22]

That's a big 'duh.'

The standing joke 'back in the day' about keeping your bags packed and how to turn Ft. Mac into a ghost town.

(No comments on the fire now, please.)

[bob vernon]

It's the cost of production. Oil Sands(tm) oil comes out of the ground as oil mixed with sand. It has to be dug up, shoveled into big trucks, hauled to a plant, separated from the sand, and then shipped to a refinery. Conventional oil flows out of a well and is sent to a refinery.

The current cost of production of Oil Sands(tm) oil at the Syncrude plant is about $50 per barrel. If the price per barrel keeps falling to about $35 a barrel as predicted, they are losing big money. But the newer plants are losing even more. the newer plants cost of production, because they aren't paid for yet, is up near $70 per barrel. So they are losing their shirts right now.

This all cascades down to the provincial gummint. Conventional oil still earns Albertans some royalties and taxes. But the Oil Sands(tm) is a big loser. For decades the conservatives ruled Alberta and didn't save for a rainy day. Now it's pouring.
Where'd all the money go? To head office in Houston. Now Houston's getting out. Ft Mac is looking more and more like a giant white elephant.

[Jflem1983]

You 3 are out to lunch . Time for a little lesson. Formations like the bakken and eagle Ford. Are frac zones . Fracking produces ultra light oil. That ultra light oil . Is then blended with tar sands oil or other heavy oil . To produce an intermediate blend . Basically it is co symbiotic relationship.

[Jflem1983]

Why do you hate working people so badly mj.

[the truth]

Why do you hate working people so badly mj.

[vegas1500]

Why do you hate working people so badly mj.

X3

[MrSandman]

cuz they took er jerbs!

[hobbyguy]

In the meantime, proactive companies like Suncor have taken steps to significantly reduce their costs.

Yes, it was about $35/bbl - making the product marginal at the lower oil prices, but Suncor have dropped their costs to the $24-27/bbl range. That makes the product much more viable in current markets.

http://www.oilsandsmagazine.com/news/2016/11/17/suncor-energy-sees-higher-production-and-lower-costs-in-2017

[Terris]

Great news...

Now we can get on with cleaning up after this party...

https://www.theglobeandmail.com/report- ... e34912511/

[jimmy4321]

Great news...

Now we can get on with cleaning up after this party...

https://www.theglobeandmail.com/report- ... e34912511/

Considering the hefty cleanup bill and whatever other associated cost, i wonder what the return was or is?

[f/22]

A company executive's wife once suggested to me that we should reclaim it as golf resorts with artificial lakes. Watch out Okanagan!