RE: Solid Netback- that is because a lot of the CVE BLENDED BITUMEN barrels are LOW LOST SAGD Chistina Lake and Foster Creek BOP
* the MOST CAPITAL EFFICIENT crude oil production sites in ALL OF CANADA and SECOND LOWEST OPEX after MEG Energy Chistina Lake
- the SU SCO and BLENDED BITUMEN barrels are PRODUCED by HIGH COST UPGRADERS (HUGE OPEX due to MASSIVE MAINTENANCE EXPENSES) and MOSTLY HIGH-COST MINING BLENDED BITUMEN barrels (GIGANTIC OVERBURDEN COSTS are INCURRED to REMOVE the TOP JUNK EARTH LAYER to ACCESS the BOTTOM bitumen reserves and MONSTER OPEN PITS with HUMONGOUS TAILINGS PONDS)
* even though SCO is PRICED AT A PREMIUM to WTI but those upgraders are VAST MONEY PITS and OPERATIONALLY SENSITIVE to BITTER COLD WEATHER {NOT a problem for SAGD BOP}
* the MINING blended bitumen (Fort Hills) is priced at a PREMIUM to WCS due to their LOWER REQUIREMENT for DILUENT to be TRANSPORTED by pipeline and SOME of that MINEBIT is FED into the upgraders
* Suncor Energy also operates some SAGD sites as well (Firebag and Mackay River)
z173