Sask Oil Shale - High Margins RepostHey Bounce; this one's for u...there is significant difference between US oil shale and Sask oil shale. Sask oil shale deposits are near surface and can be stripped mined at low cost, which translates into very attractive margins compared to US oil shale.
Found this info useful...
BQIOil Shale Numbers from
2004
HIGH GROSS MARGINS
•Afterrefining the petrochemical feedstocks in thePasquia Hills OilShaleproject (see below) have an estimated potentialvalue of $84 perbarrel
• With an estmated extraction and refining costof $25, leaving a gross margin of $59 per barrel
• The components ofthe $84 estimated value, using the average price over the last sevenyears of each feedstock component, are
? Styrene #2 $47.15
Usedasacomponent for plastics, styrene-butadiene rubber andlatex,unsaturatedpolyester resins, ABS resins. Major producers ofstyreneincludeSterling Chemicals, Chevron-Phillips, Dow Chemicals,NovaChemicals,BP, Lyondell Chemicals, General Electric Corp.
? Styrene #1 $13.96
?Naptha $14.78 Blended to make gasoline. Also used to dissolve rubberand to thin paints and varnish.
?Benzene$4.35 A component forplastics. Worldwide major producersincludeExxon-Mobile,Chevron-Phillips, BP, Equistar Chemicals, KochIndustries,Shell andDow Chemicals
? Toulene $3.65 Rawmaterial to producebenzoic acid,used as a preservative for foods,beverages and cosmetics..Also usedas a lacquer solvent and in themanufacture of dyes andperfumes.
?Total $83.90
PROPERTY LOCATION & SIZE
Pasquia Hills Oil ShaleProject
• Covers 1 million acres located in Central Saskatchewan,Canada
•Includesthe 50,000-acre mine site containing a resource of4.3 billionbarrels ofshale oil, which contain 59% aromatics, byweight. FirebagEast --potential for several billions barrels of oil
• Project located within the Athabasca Tar Sands* (see below)
•Comprises 1,600,000 acres (2180 square miles)
• Is the largest landholding in the Athabasca Tar Sands
• Is adjacent to four World
ClassOilSand projects, including Suncor,which have reported reserves of14billion barrels oil with plannedproduction of 500,000 barrels oilperday
• Geologic mapping as well asdrill data confirm the same potential on the Firebag East Lands
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