Quote:
Originally Posted by fotze
Is what the media is told by the companies really 'honest'? I know our economics have all sorts of buffers built into the price files so a 12% rate of return rarely turns out to be just a 12% rate of return and I know we are not as conservative as the guys in the oil sands. That beoing said, I have heard from many sources, Suncor's cost controls are absolutely atrocious and the oil price is disguising rampant mismanagement.
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The technical labour pool is stretched so thin we have people doing jobs that are way above their capabilities. Plus the construction contractors make a killing by charging a massive fee on every dollar they spend. Combine that with out of control material costs, and craft workers who don't do anything but smoke and hang out in tool sheds its tough to get much done on the cheap. It takes about $40,000/ barrel of production to build a SAGD facility.