RE:RE:RE:RE:RE:RE:RE:RE:RE:Strengths / weaknesses you are incorrect to say husky oilsand assets are high cost. In fact, they are quite low considering they aren't even large projects and haven't scaled up yet. Many of husky sagd projects targeting ~10,000 bbl/day range, which husky can rinse and repeat with cookie cutter engineering, saving alot of engineering and facility fabrication cost. Note that husky was in better financial shape than CVE during the merger. HSE saved CVE, not the other way around. Eigen like to tout christina lake as total representative CVE's oilsand portfolio which is not.
Husky reports rising production and higher operating costs out of its thermal portfolio | Oil Sands Magazine
quite from above report. Back in 2017, tucker and sunrise not even ramped up yet, meaning opcost today wouldn't be much higher than back in 2017. So, is < $CAD15/bbl opcost high in current oil price?
OPERATING COSTS ON THE RISE
Thermal bitumen production from Lloyd, Tucker and Sunrise averaged 123,200 bbl/day in the first quarter (net to Husky), up 2,300 bbl/day from the previous quarter. Overall thermal operating costs were reported at $11.54 per barrel in Q1, up from $9.83 in Q4/2017.
SHayden wrote: The existing cve oil sands assets are excellent I was referring the the hse oil sands assets as high cost. Your correct on the refining the two refineries are phillips 66 not cop my error.
Eigen337 wrote: SHayden - (7/10/2021 9:47:32 PM)
RE:RE:RE:RE:RE:RE:Strengths / weaknesses
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"The other thing we need to consider is CVE is not an experienced refiner, all the prior refining operations have been managed by COP. So they need to get up to speed quickly at running their new refineries and upgraders."
"Optimizing the high-cost Oil Sands assets and integrating the refining operations are the two main operational priorities at this time. "
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The WRB Refining Partnership {Wood River/Borger refineries} unit is OPERATED by PSX (Phillips 66 - NYSE) and NOT COP (ConocoPhillips - NYSE) !!!
The OILSANDS assets are NOT HIGH-COST !!!
The LONG LIFE / LOW DECLINE crude oil reserves are CAPITAL-INTENSIVE to DEVELOP {and EVEN this is being DRAMATICALLY-REDUCED by well pad design changes and LONGER laterals} but have LOW OPERATING and MAINTENANCE and SUSTAINING CAPEX production costs !!!
In fact, the Christina Lake (CL) SAGD property has the LOWEST SOR (steam to oil ratio) per unit barrel of production of any SAGD operation in Canada and the SECOND-LOWEST non-energy operating expenses after MEG Energy !!!
'Chances' (?????) are that they are KEEPING the Atlantic OFFSHORE as there were MEDIA reports weeks ago that CVE is INCREASING their stake in Terra Nova along with OPERATOR Suncor !!!
In Brent USD 65+ per barrel crude oil pricing environment, EAST COAST offshore is VERY PROFITABLE for their owners !!!
This is my opinion only.
Eigen337