RE:RE:RE:RE:RE:Chevron buys HessZ ..... the labour intensity oil sands mining you mention need to take into account costs per barrel vs the Guyana offshore costs that are challenging and typically up to 3 times more than on shore production.
Major factor when you are calculating energy companies valuation.
Hess costs per barrel quite higher than Suncor.
From recent Oil & Gas Journal article.....
"Hess’s portfolio was expected to grow production by an average 12% over the next 5 years “with a portfolio break-even targeted below $50/bbl Brent by 2027" ztransforms173 wrote:
matt2018:
- Suncor Energy is more of a MINING and INDUSTRIAL PROCESS company rather than an EXPLORATION and DEVELOPMENT company EVEN if you EXCLUDED the 4 CRUDE OIL REFINERIES, one ETHANOL plant and the 1800+ GASOLINE SERVICE STATIONS plus the ASSOCIATED DISTRIBUTION
- PUMPING OUT the LIGHT (API of 32) LOW SULFUR {less than 0.6 %} crude oil off the Guyana coast is a LOT EASIER than the HARD GRIND of MINING the the THICK HEAVY HIGH-SULFUR (3.5+%) BITUMEN and then the EVEN MORE ENERGY INTENSIVE PROCESS of UPGRADING IT WITH SUBSTANTIAL MAINTENACE CAPEX
- NO, on a PER UNIT COP BARREL BASIS; it is WORTH PAYING MUCH MORE for a Guyana OFFSHORE crude barrel COMPARED to the HEAVY OIL BARREL in Alberta
* this already TAKES INTO ACCOUNT the HIGHER VALUE SCO versus the WTI-LIKE crude oil
- MANY Canadians simply DO NOT UNDERSTAND the HARD WORK REQUIRED to TURN RAW BITUMEN into the HIGHLY-DESIRABLE SYNTHETIC CRUDE OIL (SCO) and Suncor Energy is a PRO AT IT
z173