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  • How Much Does It Cost To Produce 1 Barrel Of Oil From Oil Sands? - Part II [View article]
    without getting into details and having looked at the info supplied by some of these companies, I think that your numbers are way out to lunch on the high side.
    Nov 1, 2014. 09:08 AM | 3 Likes Like |Link to Comment
  • FP's Cattaneo: Energy East shows absurdity of Canada's energy regulations [View news story]
    They are doing what they need to do to get the job done. Nothing less would be acceptable.
    Oct 31, 2014. 01:00 PM | Likes Like |Link to Comment
  • Energy East project could open new route amid Keystone delays, Girling says [View news story]
    All the greens have done is made it way worse from any perspective that you may look at it from.
    - More options than ever for shipping bitumen.
    - Soon it will be shipped to both coasts for export anywhere in the world.
    - Rail shipping when from zero to substantial amounts with prices coming down as companies buy their own rail cars and dedicated shipping terminals come on line.
    Obama will soon be history as his term comes to an end and all these shipping options including Keystone means even more oil sands production and less say for any government outside of Canada.

    Good job greens. ;-)
    Oct 29, 2014. 10:56 AM | 3 Likes Like |Link to Comment
  • Keystone XL decision may come soon, Kerry hints [View news story]
    If they loose the senate, it will come real quick;-)!!!!!!!!!!!!!!... can only hope!!!!!
    Oct 28, 2014. 07:32 PM | 1 Like Like |Link to Comment
  • Coca-Cola Has Become Interesting Again [View article]
    Coke's soda market seems to be in a long term decline. Between the health concerns, changing tastes and the raised price of the product , people are choosing other options and their non soda businesses are not big enough to make up the difference. Eventually things will stabilize - question is when?? JMO
    Oct 27, 2014. 11:10 AM | 5 Likes Like |Link to Comment
  • Cenovus profit slips on Texas refinery outage, but cash flow improves [View news story]
    This company is a cash cow with very low oil sands production costs - have a look at their latest report. I am long.
    Oct 23, 2014. 11:05 AM | Likes Like |Link to Comment
  • Are Producers Haunted By Gas Price Drop Still Profitable? [View article]
    With respect to ECA's costs of producing oil , the only thing that can be said for certain is that they will drop substantially. They have recently moved into the Eagle Ford and Permian in a sizable way and plan on increasing production substantially while introducing newer techniques, like pad drilling and other advanced technologies. These coupled with economies of scale should result in lower production costs. Note that they have already used these techniques with their Natural gas properties where they have lower costs substantially. I have a long position in ECA - long term investment. JMO
    Oct 23, 2014. 11:03 AM | Likes Like |Link to Comment
  • Are Producers Haunted By Gas Price Drop Still Profitable? [View article]
    For cheap operating costs, I would suggest loooking at some of the oil sands producers (yes they have high capital costs but once those are payed for they can be cash flow generating machines). I am long CVE - in it for the long haul. Here are some operating costs from their latest report.

    Christina Lake

    Production

    Production at Christina Lake averaged 68,458 bbls/d net in the third quarter, 30% higher than in the same period a year earlier due to phase E reaching design capacity in the second quarter. In addition, in the third quarter of 2013 there was unplanned minor downtime related to the start-up of phase E that had an impact on production. Work to optimize phases C, D and E continues, with incremental production expected in 2015.
    The steam to oil ratio (SOR) at Christina Lake was 1.7 in the third quarter, an improvement from 1.9 in the same period a year earlier.
    Operating costs at Christina Lake were $10.40 per barrel (bbl) in the third quarter, a 9% decline from $11.46/bbl in the same period a year ago. This was primarily due to increased production, a lower SOR, improved performance at the company's facilities and a decline in fluid, waste handling and trucking costs. The decline in operating costs was partially offset by a rise in fuel expenses, consistent with higher natural gas prices, and increased workover activities related to well servicing.
    Non-fuel operating costs were $7.08/bbl, compared with $9.00/bbl in the third quarter of 2013.
    The netback the company received for its Christina Lake oil production declined 12% to $48.40/bbl in the third quarter compared with the same period of 2013, mainly due to lower crude oil benchmark prices.

    Expansions

    The company continues to make progress on the construction of phases F and G at Christina Lake.
    Total capital investment at Christina Lake was $198 million in the quarter, 22% higher compared with the same period a year earlier. Most of the investment was focused on expansion phases F and G and sustaining well programs.

    Foster Creek

    Production

    Foster Creek production averaged 56,631 bbls/d net in the quarter, 15% higher than the same period in 2013. The increase was partially due to additional production from wells using Wedge WellTM technology and to improved performance following the elimination of a backlog of well maintenance in 2013.
    The SOR at Foster Creek was 2.8 in the third quarter of 2014, compared with 2.5 in the same period of 2013. The SOR is expected to range between 2.6 and 3.0 until expansion phases F, G and H are completely ramped up. At that point, the SOR is expected to drop below 2.5.
    Operating costs at Foster Creek averaged $14.79/bbl in the third quarter, a 14% decrease from $17.12/bbl in the same period a year ago.
    Non-fuel operating costs were $10.48/bbl in the quarter compared with $14.65/bbl in the same period of 2013. The decrease was due, in part, to increased production and lower workover costs in 2014 compared with 2013 when the company was addressing a backlog of well maintenance. In addition, after a review of the company's 2014 re-drilling program at Foster Creek, it was determined that these activities were beyond normal maintenance and, in fact, enhanced future production capability and were normal capital expenditures. As a result, costs, which had been previously recognized as operating costs, have now been capitalized in the third quarter. This reduced operating costs in the quarter by $1.60/bbl.
    Fuel costs continued to have a significant impact on per-unit operating costs at Foster Creek during the quarter, increasing $1.84/bbl. The increase in fuel costs was consistent with higher natural gas prices and increased consumption compared with the same period in 2013.
    The netback the company received for its Foster Creek oil production fell 9% to $54.46/bbl in the third quarter from the same period in 2013, largely due to lower crude oil benchmark prices.
    Oct 23, 2014. 10:57 AM | Likes Like |Link to Comment
  • Oil Companies Sensitive To The Oil Price Decline And Those That Are Not [View article]
    When push comes to shove, some of the oil sands producers with their long life (40 plus year) asset can compete quite well with the saudi's. To illustrate this, I have copied a section out of CVE's latest results. They have lots of leeway to cut capital costs which are currently high as they are moving on a a number of projects. ( would suggest readers look at the complete report.

    Section copied below:

    Christina Lake

    Production

    Production at Christina Lake averaged 68,458 bbls/d net in the third quarter, 30% higher than in the same period a year earlier due to phase E reaching design capacity in the second quarter. In addition, in the third quarter of 2013 there was unplanned minor downtime related to the start-up of phase E that had an impact on production. Work to optimize phases C, D and E continues, with incremental production expected in 2015.
    The steam to oil ratio (SOR) at Christina Lake was 1.7 in the third quarter, an improvement from 1.9 in the same period a year earlier.
    Operating costs at Christina Lake were $10.40 per barrel (bbl) in the third quarter, a 9% decline from $11.46/bbl in the same period a year ago. This was primarily due to increased production, a lower SOR, improved performance at the company's facilities and a decline in fluid, waste handling and trucking costs. The decline in operating costs was partially offset by a rise in fuel expenses, consistent with higher natural gas prices, and increased workover activities related to well servicing.
    Non-fuel operating costs were $7.08/bbl, compared with $9.00/bbl in the third quarter of 2013.
    The netback the company received for its Christina Lake oil production declined 12% to $48.40/bbl in the third quarter compared with the same period of 2013, mainly due to lower crude oil benchmark prices.

    Expansions

    The company continues to make progress on the construction of phases F and G at Christina Lake.
    Total capital investment at Christina Lake was $198 million in the quarter, 22% higher compared with the same period a year earlier. Most of the investment was focused on expansion phases F and G and sustaining well programs.

    Foster Creek

    Production

    Foster Creek production averaged 56,631 bbls/d net in the quarter, 15% higher than the same period in 2013. The increase was partially due to additional production from wells using Wedge WellTM technology and to improved performance following the elimination of a backlog of well maintenance in 2013.
    The SOR at Foster Creek was 2.8 in the third quarter of 2014, compared with 2.5 in the same period of 2013. The SOR is expected to range between 2.6 and 3.0 until expansion phases F, G and H are completely ramped up. At that point, the SOR is expected to drop below 2.5.
    Operating costs at Foster Creek averaged $14.79/bbl in the third quarter, a 14% decrease from $17.12/bbl in the same period a year ago.
    Non-fuel operating costs were $10.48/bbl in the quarter compared with $14.65/bbl in the same period of 2013. The decrease was due, in part, to increased production and lower workover costs in 2014 compared with 2013 when the company was addressing a backlog of well maintenance. In addition, after a review of the company's 2014 re-drilling program at Foster Creek, it was determined that these activities were beyond normal maintenance and, in fact, enhanced future production capability and were normal capital expenditures. As a result, costs, which had been previously recognized as operating costs, have now been capitalized in the third quarter. This reduced operating costs in the quarter by $1.60/bbl.
    Fuel costs continued to have a significant impact on per-unit operating costs at Foster Creek during the quarter, increasing $1.84/bbl. The increase in fuel costs was consistent with higher natural gas prices and increased consumption compared with the same period in 2013.
    The netback the company received for its Foster Creek oil production fell 9% to $54.46/bbl in the third quarter from the same period in 2013, largely due to lower crude oil benchmark prices.
    Oct 23, 2014. 10:46 AM | 2 Likes Like |Link to Comment
  • Cliffs pops 5.5% at the open as Credit Suisse turns bullish [View news story]
    Bullish on a dog that is a high cost producer about to wipe out all share holders equity????? They must need to unload or something????? Mind you its just a matter of time before some one bites on all the low quality assets Cliffs is trying to sell and we get a dead cat bounce!!! JMO
    Oct 22, 2014. 10:52 AM | Likes Like |Link to Comment
  • 8 Major Reasons Why The Current Low Oil Price Is Not Here To Stay [View article]
    The big question in "Shale Land" is will the oil producers make the same mistake as the gas producers did a few years back and "keep drilling their brains out"??? Short term gain for long term pain??? Also it should be noted that a lot of oil sands producers are very competitive - CVE for example (steam injection based production) produces from the oil sands for well under $40 per barrel. Oil sands plants are capital intensive to build but once built are very long life with reasonable operating costs.

    Good Article with lots of info.
    Oct 22, 2014. 10:46 AM | 6 Likes Like |Link to Comment
  • Encana Should Grow After Reshuffling Its Assets [View article]
    CVE is mostly an oilsands producer with refining capacity and some minimal gas production. There is considerable difference between oil sands production and the liquids and oil being produced by ECA. JMO
    Oct 21, 2014. 05:56 PM | Likes Like |Link to Comment
  • Keystone pipeline alternative embroiled in feud that could kill the project [View news story]
    As the article in the Financial post shows, Gaz Metro, Enbridge and Spectra are just whining and do not have much of a leg to stand on as East coast storage is 100% full for the first time ever and TRP's line is running way below capacity. Their is a huge amount of U.S. gas available with in a short transportation distance which makes it far more competitive than gas that has to be shipped from western Canada. The regulators should see through the whiners scam fairly quickly. JMO

    Link Below

    http://bit.ly/1sKSyqG
    Oct 21, 2014. 10:47 AM | 4 Likes Like |Link to Comment
  • BMO Fall Home Buying Report: Two Percentage Point Rise in Interest Rates Would Strain Affordability for Majority of Home-Buyers [View article]
    Duuuu no kidding?? 2% amounts to a 30 - 50% increase depending on the term. The reality in Canada is that housing is so overpriced in the big markets that price could drop by 30% or more and the builders could still make money and allow people to buy. JMO
    Oct 20, 2014. 01:57 PM | Likes Like |Link to Comment
  • Opposition builds against TransCanada’s Energy East project [View news story]
    Gas Metro is just sour grapes. The conversion would actually lower prices as a lot of TRP's line is currently very underutilized and the fixed costs are included in the transportation charges. Also lots of US gas is available for the eastern Ontario and Quebec market.
    Oct 16, 2014. 05:24 PM | 1 Like Like |Link to Comment
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