Obama's Policy of Energy Starvation Hurts US, Benefits Canada
In a research note this week, investment bank Peters & Co. said as much as $30 billion will be spent from 2011 to 2015 on mining and in situ oilsands projects to boost production by almost one million barrels per day.As long as oil is priced in terms of the weak Obama Dollar, the price of oil is likely to be above $55 per barrel.
"Most new sizable projects are controlled by majors with less financing risk and lower costs of capital than juniors of previous cycles," wrote research analyst Todd Garman.
"Based on our assessment of currently planned oilsands mining and in situ projects, including phase expansions, we forecast total potential production additions of about 900,000 bpd, with mining and in situ production of 300,000 bpd and 600,000 bpd, respectively."
..."Specifically, we anticipate that ConocoPhillips' Surmont, Husky's Sunrise, Imperial's Kearl, MEG's Christina Lake and Suncor's Firebag 4 projects provide potential oilsands construction growth opportunities for Flint, with these projects expected to be awarded by 2010 year-end," Garman wrote.
He said the biggest risk for development is related to oil prices -- the projects are projected to break even at between $55 and $65 US per barrel. _CalgaryHerald
As peak oil drifts ever further into the distance, the more relevant and proximal causes of energy shortages derive from "political peak oil", and the disastrous decisions being made daily by incompetent clowns in public office.
Cross-posted to Al Fin Energy