RE:RE:RE:RE:RE:RE:Chevron buys Hessmatt2018 wrote: Z ..... 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
M...
oilsands, shale oil, and deepwater oil are all different balls of wax.