Posted on 10/13/2015 6:58:56 AM PDT by Lorianne
FORT McMURRAY, Alberta — At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.
Despite a severe economic downturn in a region whose growth once seemed limitless, many energy companies have too much invested in the oil sands to slow down or turn off the taps. In addition to the continued operation of existing plants, construction persists on projects that began before the price fell, largely because billions of dollars have already been spent on them. Oil sands projects are based on 40-year investment time frames, so their owners are being forced to wait out slumps.
“It really is tough right now,” said Greg Stringham, the vice president for markets and oil sands at the Canadian Association of Petroleum Producers, a trade group that generally speaks for the industry in Alberta. “We see kind of a lot of volatility over the next four or five years.”
After an extraordinary boom that attracted many of the world’s largest energy companies and about $200 billion worth of investments to oil sands development over the last 15 years, the industry is in a state of financial stasis, and navigating the decline has proved challenging. Pipeline plans that would create new export markets, including Keystone XL, have been hampered by environmental concerns and political opposition. The hazy outlook is creating turmoil in a province and a country that has become dependent on the energy business.
(Excerpt) Read more at nytimes.com ...
I believe as many Freepers have speculated this is designed to weaken US producers so Buffet or his ilk swoop in to buy up their finds and gain control over US production
I have family in the oil business. Cheap oil is costing lots of jobs in the industry.
So the oil is still there just not profitable right now? With the way things are going in the middle east it might be a good investment at today's rates.
Yeah, I was thinking that all it would take would be a shooting war .... oh, wait.
Oil pumped out of the ground in Saudi Arabia was around $20-30/barrel to produce, while oil sands are closer to $70/barrel to produce - and that’s with fracking technologies that made it cheaper.
Yes, it is better to buy from Canada than the Middle East, but customers prefer lower prices in general.
Only hoping this does not result in the election of that leftist butthead Justin Trudeau.
Oil sands do not use fracking, as the sludge do not flow; they strip-mine the oil-soaked dirt with massive scoops and conveyors.
Wait till the first Russian plane gets shot down, thanks to Bamster arming his buddies al-Qaeda ...oil prices will shoot up again.
“Our Friends” the Saudi’s are pumping oil at the same rate. They have decided they can drive the price of oil down and with a little help from the Greens, put fracking out of business.
That would be correct. It costs more to extract the oil than it will sell for.
Petroleum extraction in the Arctic region shows the highest breakeven price of $75 per barrel. On the other hand, Middle Eastern countries have the lowest price at $27 per barrel. US shale oil producers have a breakeven price of $65 per barrel.
Saudi is like China, their labor costs are nothing compared to us.
And yet why would it need to be just Buffett, why not someone like Trump. Trillionaire anyone? And it would be in friendlier hands.
That may be true but oil sands extraction is completely different from fracking ... much more expensive.
The Oil will still be there when price goes up ,money in the Bank
As much as he has done and with all that is on the air how would he do that??
Besides, when he is Prez all of his assets go into trust, he has nothing to do with them...
If he were through them to somehow become that which he is not, your point may be valid...
Unfortunately I feel the real nature of your comment is envy at his success as you measured in Trillions...
What does that have to do with this?
Please, Envy is a major sin...
The greens don’t like oil sand either. The are waiting on unicorn milk.
I don’t think the Greens have anything to do with this. These are business decisions.
Temporary only. Those resources are not going anywhere, and will be ready when prices return or added technology is begun.
Yes when oil price is high enough it will make good business sense to pursue those resources. It doesn’t make sense right now.
It really does not matter what “greens” or anyone else thinks. It is simply a business decision.
it was just my opinion.
time and the Saudi output will prove me right or wrong.
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