How much does oil sands cost?
According to a 2019 economic review document published by the Government of Alberta, “the breakeven [WTI] price for a new stand‑alone mine is currently within the US$75‑85/ bbl range,” while in-situ production is lower, at around US$55 or US$60 per barrel — still way above WTI oil prices as of late.
How much is the oil price today?
| WTI Crude •2 days | 68.74 | +1.32 |
|---|---|---|
| Brent Crude •2 days | 72.70 | +1.63 |
| Natural Gas •2 days | 4.370 | +0.186 |
| Heating Oil •2 days | 2.109 | +0.026 |
| Gasoline •2 days | 2.274 | +0.019 |
Why is oil sands expensive?
The oil sands may contain 167 billion barrels of accessible oil but it is one of the most expensive sources in the world given the amount of energy production requires. Oil impregnated sand must be either dug up for processing or heated in place allowing the oil to flow for extraction.
What is break even price for oil sands?
Oil sands projects on average require a break-even price of $52 per barrel of oil. None of the facilities are profitable at current prices, forcing producers to cut back capital expenditure.
Why is Canadian crude oil so cheap?
Canadian heavy crude has become so cheap that the cost of shipping it to refineries exceeds the value of the oil itself, a situation that may result in even more oil-sands producers shutting operations. Synthetic crude, produced from oil-sands bitumen that’s been run through an upgrader, fell to $9.56 a barrel.
How much is a barrel of oil 2020?
WTI Crude Oil Prices – 10 Year Daily Chart
| Crude Oil Prices – Historical Annual Data | ||
|---|---|---|
| Year | Average Closing Price | Year High |
| 2020 | $39.68 | $63.27 |
| 2019 | $56.99 | $66.24 |
| 2018 | $65.23 | $77.41 |
Why does Canada sell oil to the US?
Canada also exports refined petroleum products to the U.S. whether it’s funding for health care, education, or a variety of other important services that give us one of the highest living standards in the world. That’s why it’s so important that we continue building pipelines to export our oil (and gas).
Why is WCS oil so cheap?
Since the oil in WCS is much heavier than WTI (which is a light oil), and further away from main markets, WCS is priced at a further discount to WTI. Other oil streams produced from the oil sands are also priced at a discount to WTI or WCS.
What are the costs of oil sands in Canada?
According to Wood Mackenzie, the costs in Canada’s oil sands are at the upper end of the curve, even if international benchmark oil prices weren’t so low.
What’s the breakeven price for the oil sands?
Feb 9. In their 11th annual review of oil sands supply costs, the Canadian Energy Research Institute (CERI) pegs breakeven costs at $43.31/bbl for SAGD projects (steam-assisted gravity drainage) and $70.08/bbl for a stand-alone mine.
Why are SAGD costs so high in oil sands?
The big jump in SAGD breakeven costs reflect the high price of diluent required to blend the bitumen product. Diluent (typically condensate) trades almost at par with WTI. CERI therefore concludes that no greenfield oil sands project is economically feasible under the current pricing environment.
Is it economically feasible to develop oil sands?
CERI therefore concludes that no greenfield oil sands project is economically feasible under the current pricing environment. However, the author concedes the same could be said for any new oil development around the world, and profitability will improve considerably when (not if) oil prices eventually recover.
