Killer new business thread!

[Rolo]

Production cost for oil is $2-$10 per barrel, so the current price is highly speculative. Also there will be much more talk in the news to get the oil price down - things like:

Sept. 27 (Bloomberg) -- Saudi Arabia's oil minister and the president of Exxon Mobil Corp. said world petroleum reserves are enough to last for decades, seeking to ease concern about supplies and near-record prices.
Saudi Arabia, the world's largest oil producer, will ``soon'' almost double its proven reserve base, said Oil Minister Ali al- Naimi. That will add 200 billion barrels to the current estimate of 264 billion, he said. Exxon Mobil President Rex Tillerson said the world may still have more than 3 trillion barrels from conventional oil fields, oil sands deposits and other sources.

``There will be plenty of oil available to meet future demand,'' al-Naimi said today in Johannesburg. Prices are high now because ``the petroleum industry faces infrastructure constraints and bottlenecks that are causing market volatility and restricting its ability to bring oil from the ground to the consumer

http://quote.bloomberg.com/apps/news...A3A&refer=home

Then you got possible slowdown of world economy due to the high oil price, which will lower the demand for oil. And lets not forget news from the technology sector about better production, better consumption and even other energy forms, which could increase available oil.

Personally I would love to see a high oil price, because it will make investments in other energy areas possible (less depended on the middle east + creating local jobs), however I do not think that the oil price will rise in double digits per barrel in the next years, unless some major terror or revolt in saudi arabia.

"it will make investments in other energy areas possible (less depended on the middle east + creating local jobs"
That would be the tar sands in Canada. The largest oil reserve on the planet. Other energy sources are so far removed from the possibliites the tar sands offer. So be nice to Canada. Most of America's oil comes from Canada, not Saudia.

[Rolo]

Originally Posted by Unregistered

So be nice to Canada. Most of America's oil comes from Canada, not Saudia.

All you have to do is ask

Yeah, blue eyed Arabs.

Originally Posted by Unregistered

Yeah, blue eyed Arabs.

But much smarter.

[Rolo]

Originally Posted by Unregistered

Yeah, blue eyed Arabs.

I think thats the norwegians - http://www.eia.doe.gov/emeu/cabs/topworldtables1_2.html

Top World Oil Producers, 2004
7) Norway 3.18 million barrels per day

Top World Oil Net Exporters, 2004
3) Norway 2.91 million barrels per day

wrong....
Canada has world's largest oil reserves

15-01-02 The worlds largest oil reserve is not lying under Saudi Arabian deserts or under the sea, it is clinging to grains of sand in the Canadian boreal forest of Northern Alberta. Between 1.7 tn and 2.5 tn barrels of crude oil, 300 bn of which are expected to be recoverable, are spread like topsoil across thousands of sq km of Alberta forest and tundra.
And thanks to new technology being developed by many large oil groups, it may offer a seemingly limitless supply of North American petroleum products with the scoop of a steam shovel. "Alberta is in a very enviable position to supply its own needs and those of its trading partners over the next 50-100 years," Murray Smith, Albertas Minister of Energy said ahead of his speech to a conference on North American energy in Washington.

And for energy-thirsty Americans, the reserves may be key to President George W. Bush's desire to rely more on a continental energy plan, rather than its oil supplies from the turbulent Middle East. "Security of supply is always a key issue among members of [the US] Congress. We have to reduce our dependence on foreign oil, but that's very difficult to do," said Robert Ebel, director of Energy and National Security at the Centre for Strategic and International Studies (CSIS) in Washington. The centre is hosting the energy forum. "There are a lot of people in the US who need educating on the importance of Canada as an energy supplier to the US in oil and natural gas," he added.

Collective investment in the Alberta oil sands has become one of the worlds largest ongoing engineering projects with more than $ 6.3 bn spent over the last three years to upgrade recovery operations and refining technologies. Another $ 10 bn is in the works and a further $ 19 bn in development proposals from companies like Imperial Oil, Petro-Canada, Suncor, Syncrude, Shell, Chevron and Conoco awaits regulatory scrutiny and approval.
"We've seen tremendous investment from US firms in the oil sands. It has clearly become an important piece of the North American energy puzzle," said provincial energy minister Smith. Biggest drawback is high production costs The development has turned the small city of Fort McMurray into Canada's hottest marketplace with housing costs that rival the country's biggest cities and skilled labour commanding premium wages.

But the biggest drawback for oil sands development is the high production cost associated with extracting the heavy, gooey bitumen -- a petroleum product that can be refined into gasoline or other products -- stuck to every grain of sand.
Production costs, although significantly cheaper than a decade ago, still range from $ 11 to $ 18 per barrel of oil sands bitumen. This is considerably more expensive than producing conventional Persian Gulf light crude which costs less than $ 2 a barrel to recover.
Companies use Steam Assisted Gravity Drainage, which works by drilling parallel pipe wells into oil sands that sit below rock caps. Steam is forced through one well that heats the oil sands and releases the bitumen from the sand to drip into the return well and be pumped to the surface.

If it all plays out as planned, oil sands production will more than triple from the current level of 600 000 bpd to more than 2 mm bpd of oil by the next decade. Allan Ross, an energy analyst based in Calgary, says with 20 mm bpd needed to satisfy the energy-thirsty United States, ample supply from a friendly trading partner will be important in the coming years if oil prices remain high.
Currently, Canada supplies 1.8 mm bpd of oil to the United States. "Oil sands are too crucial for the Americans to ignore. President Bush has said they need reliable sources of energy. "Oil sands are rock solid. It'll be there day-in, day-out for many presidential terms," Ross said.

Source: AFP

President Bush has said they need reliable sources of energy. "Oil sands are rock solid. It'll be there day-in, day-out for many presidential terms,"


Maybe

[Rolo]

Originally Posted by Unregistered

wrong....

I was refering to the fact that Norway is and have been one of the largest exporters of oil, and the fact that there is a high frequency of blue eyes in Scandinavia ;-))... ofcourse if you were refering to the "blue-eyed innocence", then we know by now that canadians are innocent, pure and good by default, while anyone else is guilty, dirty and evil

[Robin]

Originally Posted by Unregistered

wrong....
Canada has world's largest oil reserves

15-01-02 The worlds largest oil reserve is not lying under Saudi Arabian deserts or under the sea, it is clinging to grains of sand in the Canadian boreal forest of Northern Alberta. Between 1.7 tn and 2.5 tn barrels of crude oil, 300 bn of which are expected to be recoverable, are spread like topsoil across thousands of sq km of Alberta forest and tundra.

Bingo!

Research ECA - Not got to the Es in my blog yet, but ECA will skyrocket off the back of Canadian oil sands.

[Robin]

Originally Posted by Rolo

however I do not think that the oil price will rise in double digits per barrel in the next years, unless some major terror or revolt in saudi arabia.

If we are at 'Peak Oil' then the easiest oil has been produced. From now onwards less and less will be produced and demand will far outstrip supply. The thing is, though, everyone needs energy, so there will always be enough demand for however much oil remains. The price is not based on production cost but on limited supply.

Also, the Arabs have inflated their reserve figures by up to 400% for years because their OPEC agreements only allow them to produce proportionally to their reserves, so they lie to be able to sell more oil. And they all do it. Don't listen to what the Arabs or any politicians say. Listen to what the scientists are telling us.