Hyperinflation

The Oil Sands: Profiting from a Misunderstood Patch in the Oil Complex

Why do say there is lots of risk in the oils sands? I agree at first the capital requirements to begin projects was rather steep, but that is coming to an end as cap-ex requirements are substancially lower going forward. The risk is in the feasibility, as in whether or not it is profitable at any given time. This risk , however, has become the sands comparative advantage in that there reserves will soon be second to none. If You think OPEC had major influence, wait 3-5 years , and this group of oil companies will have even greater influence.
Additionally there are no trusts companies involved (at least to a meaningful degree) in the sands. Canada treats their resource companies like kings and rightfully so. I would argue they have tax advantages relative to others in the complex.

The Oil Sands: Profiting from a Misunderstood Patch in the Oil Complex

I don't see how that relates to the article or my response. Of course Oil could go to $50 and it could theorhetically go to $10. If you play that game of trying to predict short movements, you are bound to lose. I am talking about these as investments not trades. If you're so sure that it will drop significantly and it sounds like you are get extremely leveraged and sell futures. I would rather be dollar cost averaging positions and then possibly buying futures should oil go to 45 or so.

The Oil Sands: Profiting from a Misunderstood Patch in the Oil Complex

Its not like I can change what will happen will the dead fish, tress cut down, etc. I'm just saying if you believe oil is going back over 100 again, the oil sands will be extremely profitable for a long time to come. Many products are increasing output each year and significantly less cap-ex needs to spent going forward. Production costs aren't $80-$100! You obviously pulled that out of thin air. The Canadian Oil sands trust has production cost of $42 a barrel while others have slightly higher cost around 45-48. The highest I've come across is $52.

I didn't write this because I want all that land destroyed but a way to make money. I think cigarettes kill people, but I would buy a cigarette company. I would but a car company if i could make money, and cars kill a substantial number of people each year. Lawyers will not get involved with this because Canada is a natural resource country and they know the sands will be an integral part of their future. They also don't have a ridiculous judicial system as in the U.S. As for the trees did they own the land? Or the government? Should it be the latter, then go ahead, why should the government own anything to begin with? Like these companies, I pay taxes and would love to exploit so called public goods. The government has no right to tax ( as it infers no ownership of self) , just as it has no right to own anything. Perhaps you should be blaming the government and pushing for private property rights. This would have prevented any destruction of trees, ponds, etc.