From one of recent article in Globe and Mail, they dont really say if its CAD$ or US$
A recent study by BMO Nesbitt Burns pegged the average cost of developing an oil-sands mine and operating it profitably at about $90 per barrel, well above the current price of crude. For example, the study said, costs at CNOOC Ltd.’s Long Lake project are well over $100 a barrel, and costs for the Suncor Energy Inc.-Total SA Fort Hills development, now under construction, are above $90.
Investors have already driven down the share prices of oil producers amid growing fears that profit margins will be squeezed and plans delayed or cancelled.
However, many well-established oil projects remain profitable at current or lower prices. The core operations of Suncor and Syncrude Canada Ltd. have costs of less than $50 a barrel. Some steam-driven oil sands projects, such as MEG Energy Corp.’s Christina Lake development and Imperial Oil Ltd.’s Cold Lake venture, have costs under $65, according to the study, giving them breathing room.
More information
http://www.theglobeandmail.com/repor...ticle21122662/
Quote:
Originally Posted by burn_this_city
There shouldn't be a huge effect. I've said it before and I'll say it again. The Canadian dollar dropped and we sell oil in USD and the differential for bitumen against WTI has shrunk immensely. We're getting more now per barrel than we were same time last year.
|