Friday, December 21, 2012

Are Oil Sands Projects Screwed?

The activities on Oil Sands projects in Alberta has attracted many people to this province in the past 5 years or more. As well have kept many people active around the globe. Manufacturers and service providers from Korea to the UK and from the US to all industrial provinces of Canada are benefiting form these projects but seems lack of proper transportation media has significant affect on the projects.
The XL Keystone Pipeline which is planned to take the crude from Alberta to Texas has not been approved. At the same time there was another one on the schedule which was supposed to take Alberta's oil to the coasts of British Columbia and that one, the Gateway Pipeline is in holding pattern as well simply because B. C. wants more than Alberta is offering (levy, etc) and Alberta is not giving that much away.
So the current situation in oil industry of Canada is pretty much similar to Iran's! That country faces sanctions that not only prevents the oil industry from investing and renewal but also does not let them to export as much as normally is done.
I even heard the oil sand recently has been sold for $45 a barrel while the conventional oil is around $90 a barrel. I don't know how transporting goods could affect the price of an item this much! It could be possibly because of not being able to meet delivery date deadlines.
I also noticed the day before that the price of gasoline has gone down significantly and below $1 for every litre and that I can say happened for the first time since summer of 2010, as far back as I remember. While the temperature is too low now, currently around -17 °C and considering windchill it feels around -24 °C (I was out walking for about 20 minutes!) and snowfall has caused issues in many European countries, it is not known why the price of oil has gone so low.
So this is another reason that no one is immune to the economy here in Canada. I feel bad for the dickheads who just after a year and a half working bought houses for $650,000 and up and have to pay mortgage for the next 35 to 40 years. In a way I don't feel bad for them because that's what is going to happen to suckers! How guarantees a job for 35 years here in Canada? Wal-Mart may be does that!
(Photo: Two maps here the one on the left shows the Gateway Pipeline which goes through northern Alberta and British Columbia and the one on the right, the XL Keystone which is supposed to take the oil of Alberta to the south coast of the US to feed the refineries)

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