Oil ?

[ASRG]

It's starting to get a bit ugly out there!
Western Canadian Select (a mixture of heavey oil/synthetic oil/condensate)is at a pretty low price.....$55/bl......compared to the benchmark West Texas Intermediate at $87!
Upgraded bitumen is about $33....synthetic oil is $86.25...condensate is probably much higher....blended together....$55!
Horizontal multi stage hydro fracked light crude (think the Bakken in N. Dakota) needs a $70/bl.
With the price of Western Canadian Select at $55 regular oil sands are not viable, while SAGD (steam assist) oilsand are barely viable.
Doesn't look too good for Alberta!

[per]

Help me out here ASRG. Is this is a reflection of the basis to West Texas? The new reality until we have markets (transportation) off the continent?

[Horse]

I sure wouldnt worry to much for the oil business they always find a way to keep thier life style where they are very comfortable.
If farming was run like the patch bly would be at least $10 and beef $30 like lobster.
I would venture a guess that it is a tossup who is more ineficent the patch or the Gov. They all know where the money tree is.

[ASRG]

per....it gets worse Western Canadian Select closed at $48/bbl on friday.
Even if we get pipeline capacity to the west (or east) coast the royalty is paid at the well head (or mine). It doesn't really matter where it goes because any increase in price (Brent price) is going totally to the oil company.
Just found out the condensate used in the mix (WCS)is worth a bit more than $100/bbl and most of the condensate from the shale plays is heading to Fort Mac to be blended!

[perfecho]

Probably not a popular opinion, however I would like to see a bit of a slowdown ....have some people realize what "normal" is...put some reality into to wages and availability of services and people. It is great to have a healthy economy, however a number of people believe they are entitled to such a gtrand lifestyle.

[Horse]

perfecho I agree 100%