RE:RE:RE:RE:RE:RE:U.S. Shale's Dirty (Big) Secret
One article by one biased writer and the paranoia grows once again. You shouldn't believe everything you read without first considering all sides of the argument. But then that takes work and everyone is here just for fun.. or do you actually want to make a profit in Cdn oilcos? So far, I am up 27% over the past 6 months. I have been 100% cash prior to that for the past 3 years. Maybe 40 years in the business with an MBA in energy economics and running a few junior oilcos is a good place to start before you commit any of your hard earned cash into the spin of the roulette wheel.
The oil sands continue to import 500,000 bbl/dof shale oil, as a diluent, from the US. and producers receive a $2/bbl premium over WTI or $82/bbl Cdn. WCS is $34US/bbl ($44Cdn). The shale (light tight) oil (LTO) production in Canada today is less than 500,000 bbl/d. With high field declines and only, at best, a 10% annual growth in production, how many years before we are oversuppled with light oil?
Yes, the US refineries are designed for 30' API oil but 2 million bbl/d of light oil is being exported to world refineries who want gasoline feedstock. And, keep in mind that the US is still a net importer of 8 million bbl/d. US LTO is about 6 million bbl/d....go figure.
At least take the time to go to the Arc Energy Research Institute website and try to understand all the graphs there. You will then be smarter than the average bear and see the upside in LTO oil.