Economics drive tar sands operations. Record highs in oil prices, though still fluctuating, will make tar sand oil ‘economical’ (read: profitable) well into the future. Government subsidies to this environmentally disastrous process remain in place from a time when the federal government was sponsoring research into the possibility of recovering this oil. Stock prices of tar sands developers grow the more conventional oil is scarce.
Tar sands stocks hit 52-week lows on financing fears
Carrie Tait, Financial Post Published: Monday, October 06, 2008
CALGARY -- A slew of Canada's most respected oil and gas outfits slammed into 52-week lows during Monday's tumultuous trading session, highlighting fears that companies in the oil patch face a struggle to rustle up the cash necessary to plow ahead with expensive projects.
Labour groups critical of Harper’s oilsands comments
Friday, October 10, 2008
By CAROL CHRISTIAN
Today staff
Recent election promises by Conservative Leader Stephen Harper focusing on oilsands irritated two labour groups fighting for Canadian job, and energy, security.
Both the national Communications, Energy and Paperworkers (CEP) Union and the Alberta Federation of Labour (AFL) claim Harper continues to ignore Canadian national energy security, and the jobs pouring out of the country.
Politicians vs. our last healthy industry
Mark Milke, For The Calgary Herald
Published: Friday, October 10, 2008
In a serendipitous release Wednesday, Statistics Canada published data on how much the oil and gas industry spends on extraction, i.e., getting oil and gas out of the ground so we can power our automobiles and heat our homes and offices, among other uses.
The numbers are staggering. In 2007, the industry spent $49.7 billion on capital expenditures. On the operating side, Canada's energy industry cut cheques worth $37.6 billion.
Ability of oilsands players to weather storm a question of timing: economist
The Canadian Press
October 10, 2008 - 12:44 a.m.
CALGARY - The ability of oilsands players to weather the recent economic tempest will in large part depend on timing, an economist says.
On Friday crude oil prices shrivelled to US$80 - break-even territory for many high-cost oilsands projects.
Derek Burleton of TD Economics says companies that started their projects a few years back will be in better shape, since their plans were based on crude prices not all that different from today's.
Next president could make huge oil sands deal with Canada
Posted: October 10, 2008, 11:13 AM by Jonathan Ratner
Energy
Enbridge spells DEFENCE
Posted: October 08, 2008, 1:01 PM by David Pett
Energy:
Enbridge Inc. is a good bet for those investors seeking refuge from beaten down markets of now.
At least, that's the conclusion set forth by two analysts, following Enbridge's Investor Day in Toronto on Tuesday.
"Enbridge made a strong case for its investment merits in today’s market, including a low risk profile, manageable capital requirements, and compelling earnings growth over the next 4-5 years," Grant Hofer of UBS said in a research note, reiterating his "buy" rating and $50 price target.
The Peak Oil Crisis: Bailouts & Shortages
Written by Tom Whipple
Thursday, 02 October 2008 11:19
We are witnessing one of the most eventful weeks in modern history. Stocks and oil prices plunged on Monday and bounced on Tuesday; credit markets seem to be freezing; the Congress remains in gridlock as members watch the approaching elections fearful of what could happen to their incumbency.
In the South gasoline supplies have been short for two weeks and prices there have bounced back to $4 a gallon. The economic news gets worse with every release of new numbers.
Very interesting line in here:
"Instead of building an upgrader such as at Fort Hills, which needs an oil price of around $90 a barrel to create returns, the returns are better if companies find a U.S. refining partner to take their bitumen production, he added."
This is essentially a statement that the financial collapse within the United States is leading the tar sands to export more bitumen directly without, in industry parlance "giving the value added here before moving the product downstream". This will definitely further inflame the Alberta Federation of Labour.
--M
Enbridge CEO says Harper bitumen plan no threat
Tue Oct 7, 2008 2:21pm EDT
By Cameron French
TORONTO, Oct 7 (Reuters) - Enbridge Inc Chief Executive Pat Daniel said on Tuesday that a campaign pledge by Canada's governing Conservatives to halt exports of tar-like bitumen to countries whose environmental record is weaker than Canada's is no threat to Enbridge's planned C$4.2 billion pipeline to the Pacific Coast.
Oil sands stocks take beating as Connacher shelves expansion
Carrie Tait, Financial Post Published: Monday, October 06, 2008
CALGARY -- Oil sands stocks were being clobbered Monday, an indication the market continues to doubt whether these companies will be able to secure financing to plow ahead with expensive projects.
Connacher Oil and Gas Ltd. admitted Monday it has shelved plans to expand capacity at its heavy oil refinery in Great Falls, Mont. It had wanted to jump from processing 9,500 barrels of oil a day to 35,000 barrels.
