Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
Another article from the green clowns at the NYT - petroleum coke is actually a useful by product that can be sold to other industries for may purposes.
You can call this "The Obama Stall"! "No he can't" Obama just does not seem to be capable on making any deals with the Republicans! No deals on Debt ceiling, No deals on Keystone, No deals on anything!! End result is a suffering economy!!! JMO
Buried in the IEA report about booming North American output is a warning for Canada: If the Keystone XL pipeline (TRP) isn’t built, prices for Alberta-sourced bitumen likely would remain depressed, investments to expand production could be deferred, and loading crude onto rail cars isn't a long-term solution to ease the bottleneck. The report goads officials in Edmonton and Ottawa to do more to promote the pipeline. [View news story]
Duuuu - Like Canada did not already know this! That is why they are looking at running/ increasing capacity of pipe west, east and north as well as the Keystone line. At least 2 of these additional lines will be built. Canada has quickly learned of the dangers of relying on one customer for a product and will be correcting the situation regardless of Keystone.
Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
Canada will soon (2- 3 years) have other alternatives for shipping oil as they hare looking east, west and north. So the price is going up either way. The difference is that keystone would provide oil from stable reliable source rather than having to buy it from nations that are not friendly to America and not that stable.
Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
There was a lot of hope when Obama was first elected but it soon became clear that his "yes we can" amounted to a "no I can't get anything done. He spends to much time trying to cater to the leftie environmental types and these people are IMO just not representative of main steam America. He is not capable of making any deal with the republicans who have stone walled him all the way. It is well known that the republicans want this pipeline and I expect would be willing to make concessions else where to get it but Obama - "NO HE CAN'T"
Turquoise Hill And Rio Tinto In Spotlight As Oyu Tolgoi Gets Ready To Rumble [View article]
Rio Tinto wrote off billions on the Alcan purchase and more billions on their coal purchase. Walking from OT would involve writing off 3 - 4 more billion and as such, I would not say they are "all in". Yes they want it to work out as it is a very large low cost long life deposit but if push comes to shove they are IMO more than willing to park it for a while or walk. Most of Tinto's profits come from iron ore and and OT write off for a 60 billion plus company will not be that major and not that negative for Walsh as most of the money was spent during Albanase's time at the helm of Rio Tinto. IMO Tinto has the upper hand here.
Turquoise Hill And Rio Tinto In Spotlight As Oyu Tolgoi Gets Ready To Rumble [View article]
With respect to "hiring of Sam Walsh in the early part of 2013" , Sam Walsh was head of the Iron ore division and was promoted to head the whole company. He was not hired. As for TRQ, the key rests with the GOM. If the GOM again gets stupid and starts making unreasonable demands, then Rio Tinto will seriously consider parking the project until the GOM gets reasonable. They discussed doing this once already in the early goings of negotiations with the GOM over the latest disagreements and anti foreign investment laws the GOM was looking at passing. The big leaver for TRQ and Rio Tinto is the fact that this project will represent 30% of Mongolian GDP and as such the GOM can not afford to screw it up. As bad as the GOM may want to gouge more that the 71% of project cash flow that the current investment agreement gives Mongolia, they have to be care full as the way the project goes is the way the Mongolian economy will go. The project is far more important to Mongolia than it is to Rio Tinto. The GOM in many ways has a third world government mentality and has a lot of corruption problems. JMO based on following this situation for 5 years or so.
If The Keystone XL Is Rejected, Canadian National Railway Will Benefit The Most [View article]
If Keystone gets rejected (which would be real dumb!!!) there are plans for routes East, North and West. South is not the only pipeline route. Rail would benefit in the intern till these other options are put in place. One way ore the other the oil will be produces and delivered to market. If built, there would still be a need for rail transport although much less. Rail is the most expensive option and pipelines are cheapest and safest. JMO
The Keystone XL Pipeline Being Delayed Until Late 2015 Is Good For Canada [View article]
I agree 100% - this will actually help increase the output of oil from the oil sands considerably as with diversified markets and pipelines running north, south, east, and west, plus rail transport that was unheard of a few years ago the market for Canadian oil will expand considerably with the price variation narrowing and staying closer to world prices.
Risky Stocks In A Complacent Market [View article]
Careful on MT - They have a big European division with governments and Unions that will not let then rationalize it or shut anything down. They also built their North American division (with the exception of Dofasco up in Canada which is perhaps the best steel plant in North America) by buying what I call all the garbage plants out of bankruptcy. They also decided to expand into Iron ore in a hot market and are now backing off - sold a chunk of the Baffin Land operation and 15% of their North American operation in an attempt to lower debt. They have made some mistakes along the way. JMO
Cook Up 7.5% Yields With Short 4-Year Mongolian Mining Bonds [View article]
with respect to" "Expressing confidence in the potential and future economic growth in Mongolia is Rio Tinto (RIO), one of the world's largest mining companies, which recently spent over 6 billion dollars to buy out Turquoise Hill Resources (TRQ) stake in the project and build the new Oyu Tolgoi copper and gold mine. " This is incorrect as Rio Tinto purchased 51% of TRQ which currently owns 66% of this project with the GOM owning the other 34%. Tintio is currently locked in a battle with the GOM (GOM wants to change original agreement after 6 billion invested in the mine by Tinto and TRQ). The actions of the GOM have made foreign investors leery of investing in Mongolia. Lots of info on SA - enter TRQ and look at the articles.
Cook Up 7.5% Yields With Short 4-Year Mongolian Mining Bonds [View article]
There are lots of problems in Mongolia due to the lack of stability in the Government of Mongolia's policy towards foreign investment. As such, even though the country has huge untapped natural resources of coal, copper, precious metals and more it has seen foreign investment has dropped by almost 20% this year (government figures and I actually suspect it is worse than that). The GOM issued 1.5 billion in what they dubbed the Chingis bond not that long ago. Shortly after issuing the bond they ramped up their attack on foreign investment (specifically mining) by passing some very foreign investment unfriendly regulations. The bond tanked. Khan resources and South Gobi Energy are two companies that have had lots of problems in Mongolia over the past few years and Rio Tinto and TRQ who are developing a huge copper gold deposit seem to also be looked in a constant battle with the GOM. Rio Tinto and TRQ after sinking 6 billion into this project are actually considering delaying production (scheduled for this June) if they can not come to an acceptable conclusion with the GOM. The stories of these 3 are well documented by various news sources and publications on the internet including SA. For myself, I monitor the struggle between Rio Tinto and the GOM and use it as a barometer to the political situation in Mongolia as this project is expected to produce 30% plus of Mongolia's GDP and so as it goes Mongolia will go. There has been some recent softening in the GOM's position here but the GOM has also been know for quickly changing its tune.The bottom line is to tread very carefully on Mongolian investments as there is a lot of corruption in Mongolia and government policy is not very stable. I do own TRQ shares.
Canada continues to turn up the heat on the Obama administration, as natural resources minister Joe Oliver says a U.S. rejection of the proposed Keystone (TRP) pipeline “would represent a serious reversal in our long-standing energy relationship.” On environmental objections, Oliver says Keystone crude would displace Venezuelan and other heavy oil and "not increase greenhouse gas emissions at all.” [View news story]
It is about time that Obama wakes up and approves this pipeline as it is the right thing to do for America!
More on Cenovus' (CVE) Q1 results: Cash flow was $971M, up 7% Y/Y mainly due to strength in its refining business. Combined oil sands production at Foster Creek and Christina Lake averaged more than 100K bbl/day, up 22% Y/Y. Conventional oil production, including Pelican Lake, averaged nearly 80K bbl/day, up 7%. [View news story]
I suspect that it got caught in the overall down market with the rest of the oil stocks. if you look at operating profits they actually beat expectations at I believe it was 0.52.
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
Initial Jobless Claims: +32K to 360K vs. 330K consensus, 328K prior (revised). Continuing claims -4K to 3.00M. [View news story]
Buried in the IEA report about booming North American output is a warning for Canada: If the Keystone XL pipeline (TRP) isn’t built, prices for Alberta-sourced bitumen likely would remain depressed, investments to expand production could be deferred, and loading crude onto rail cars isn't a long-term solution to ease the bottleneck. The report goads officials in Edmonton and Ottawa to do more to promote the pipeline. [View news story]
Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
Turquoise Hill And Rio Tinto In Spotlight As Oyu Tolgoi Gets Ready To Rumble [View article]
Turquoise Hill And Rio Tinto In Spotlight As Oyu Tolgoi Gets Ready To Rumble [View article]
Turquoise Hill And Rio Tinto In Spotlight As Oyu Tolgoi Gets Ready To Rumble [View article]
As for TRQ, the key rests with the GOM. If the GOM again gets stupid and starts making unreasonable demands, then Rio Tinto will seriously consider parking the project until the GOM gets reasonable. They discussed doing this once already in the early goings of negotiations with the GOM over the latest disagreements and anti foreign investment laws the GOM was looking at passing. The big leaver for TRQ and Rio Tinto is the fact that this project will represent 30% of Mongolian GDP and as such the GOM can not afford to screw it up. As bad as the GOM may want to gouge more that the 71% of project cash flow that the current investment agreement gives Mongolia, they have to be care full as the way the project goes is the way the Mongolian economy will go. The project is far more important to Mongolia than it is to Rio Tinto.
The GOM in many ways has a third world government mentality and has a lot of corruption problems. JMO based on following this situation for 5 years or so.
If The Keystone XL Is Rejected, Canadian National Railway Will Benefit The Most [View article]
The Keystone XL Pipeline Being Delayed Until Late 2015 Is Good For Canada [View article]
Risky Stocks In A Complacent Market [View article]
Cook Up 7.5% Yields With Short 4-Year Mongolian Mining Bonds [View article]
"Expressing confidence in the potential and future economic growth in Mongolia is Rio Tinto (RIO), one of the world's largest mining companies, which recently spent over 6 billion dollars to buy out Turquoise Hill Resources (TRQ) stake in the project and build the new Oyu Tolgoi copper and gold mine. "
This is incorrect as Rio Tinto purchased 51% of TRQ which currently owns 66% of this project with the GOM owning the other 34%. Tintio is currently locked in a battle with the GOM (GOM wants to change original agreement after 6 billion invested in the mine by Tinto and TRQ). The actions of the GOM have made foreign investors leery of investing in Mongolia. Lots of info on SA - enter TRQ and look at the articles.
Cook Up 7.5% Yields With Short 4-Year Mongolian Mining Bonds [View article]
Canada continues to turn up the heat on the Obama administration, as natural resources minister Joe Oliver says a U.S. rejection of the proposed Keystone (TRP) pipeline “would represent a serious reversal in our long-standing energy relationship.” On environmental objections, Oliver says Keystone crude would displace Venezuelan and other heavy oil and "not increase greenhouse gas emissions at all.” [View news story]
More on Cenovus' (CVE) Q1 results: Cash flow was $971M, up 7% Y/Y mainly due to strength in its refining business. Combined oil sands production at Foster Creek and Christina Lake averaged more than 100K bbl/day, up 22% Y/Y. Conventional oil production, including Pelican Lake, averaged nearly 80K bbl/day, up 7%. [View news story]