Official (Alberta) Oil Discussion Thread

[Johnny Makarov]

I don't get it but why couldn't Venezuela turn back into a decent country with those reserves? and fairly quickly.

Is the oil hard to extract there?

[Locke]

Man...I gotta buy a Subway with all the meat thats going to be purchased around here!

[Johnny199r]

Originally Posted by Johnny Makarov

I don't get it but why couldn't Venezuela turn back into a decent country with those reserves? and fairly quickly.

Is the oil hard to extract there?

You need people who know how to extract it, along with the necessary equipment to extract it.

Sounds easy in Canada, not so easy in Venezuela when everyone stopped getting paid and left and everything fell into a state of disrepair.

[Lubicon]

Originally Posted by Johnny Makarov

I don't get it but why couldn't Venezuela turn back into a decent country with those reserves? and fairly quickly.

Is the oil hard to extract there?

Originally Posted by Johnny199r

You need people who know how to extract it, along with the necessary equipment to extract it.

Sounds easy in Canada, not so easy in Venezuela when everyone stopped getting paid and left and everything fell into a state of disrepair.

Venezuela nationalized their oil industry, driving out all foreign investment and knowledge. Then didn’t reinvest anything back into the industry and it’s pretty much fallen apart.

[Slava]

Originally Posted by Lubicon

Venezuela nationalized their oil industry, driving out all foreign investment and knowledge. Then didn’t reinvest anything back into the industry and it’s pretty much fallen apart.

Yeah, and the top people were essentially forced out. I know a guy from there who was sued by their government for billions of dollars, and while that was a farce, it's also incredibly serious.

[Tron_fdc]

Yeah I know an engineer at Imperial that fled for a lot of the same reasons. Said when they nationalized he went to a protest with a co worker that turned into a riot, and his co worker was shot and killed in front of him.

It would take billions of dollars to replace all the equipment they left to rust out, let alone what it takes to attract back professionals that fled the country for fear of death just because they were VP's, managers or engineers.

Add to that US sanctions on diluent (which is a major component of their export requirement) and Venezuela is pretty much boned.

If there was appetite for it, I would think expanding Canadian production and constructing pipelines would be easier, faster and less violent than fixing the mess in Venezuela, which would likely involve a coup of some kind.

[FormerPresJamesTaylor]

Originally Posted by Johnny199r

You need people who know how to extract it, along with the necessary equipment to extract it.r.

That's where my son and business partner HW come into play.

[Locke]

Originally Posted by Tron_fdc

Yeah I know an engineer at Imperial that fled for a lot of the same reasons. Said when they nationalized he went to a protest with a co worker that turned into a riot, and his co worker was shot and killed in front of him.

It would take billions of dollars to replace all the equipment they left to rust out, let alone what it takes to attract back professionals that fled the country for fear of death just because they were VP's, managers or engineers.

Add to that US sanctions on diluent (which is a major component of their export requirement) and Venezuela is pretty much boned.

If there was appetite for it, I would think expanding Canadian production and constructing pipelines would be easier, faster and less violent than fixing the mess in Venezuela, which would likely involve a coup of some kind.

I had no idea it was that bad. I deal with a a number of Venezuelans working here in Canada and I had no idea that they basically had to escape Venezuela.

[JD]

ADNOC in Abu Dhabi may have as many Venezuelan engineers working for them as they do Arabs!

[Azure]

Everyday I wait for the US & Canadian governments to acknowledge that there is enough oil in Alberta to make everyone happy....

[Suave]

Originally Posted by Azure

Everyday I wait for the US & Canadian governments to acknowledge that there is enough oil in Alberta to make everyone happy....

How? Maybe on a theoretical reserve basis, but not even close to what is actually economical or practical.

[Geraldsh]

The UK prime minister asked Trudeau for a source of gas and oil. Our favourite politician mumbled something about transitioning beyond fuels. Very helpful.

[Table 5]

It's been rumoured for a while but it sounds like Biden will officially be putting a ban on Russian Oil, LNG, and Coal today.

The Biden administration will impose a ban on U.S. imports of Russian energy on Tuesday without the participation of its European allies, according to people familiar with the matter.

The ban will include Russian oil, liquefied natural gas and coal, according to two people, who spoke on condition of anonymity. The decision was made in consultation with European allies, who rely more heavily than the U.S. on Russian energy, another person said.

https://www.bloomberg.com/news/artic...premium-canada

[burn_this_city]

WCS $112 today, less than 24 months ago it was trading negative and for a week around $4.

[Fuzz]

What has OPEC been doing? I know they had a bunch of curtailed production, have they done anything to reduce that? Doesn't Russia supply something like 10% of global oil?

[burn_this_city]

Originally Posted by Fuzz

What has OPEC been doing? I know they had a bunch of curtailed production, have they done anything to reduce that? Doesn't Russia supply something like 10% of global oil?

OPEC can't seem to pump more reliably. Even before the war they were undershooting their production targets. No one really drilled in 2020 and now we are seeing the outcome of that.

[Locke]

Originally Posted by Geraldsh

The UK prime minister asked Trudeau for a source of gas and oil. Our favourite politician mumbled something about transitioning beyond fuels. Very helpful.

Trudeau is just bitter that standard attire in the UK is a business suit so he didnt get to crack open his 'Tickle Trunk.'

Thats fine though, let Eastern Canada keep buying from despots.

Trudeau stands with Ukraine....which is why he had Canada funding Russia via Oil imports for years.

But he's saving the world from Carbon! Well...most of the world. Not Ukraine.

[Azure]

Keystone, while not immediately solving other problems, would allow Alberta to rake in a lot of oil revenue.

Jobs, taxes, you know.....important stuff to boost the economy.

[bizaro86]

Originally Posted by Fuzz

What has OPEC been doing? I know they had a bunch of curtailed production, have they done anything to reduce that? Doesn't Russia supply something like 10% of global oil?

OPEC has always CLAIMED to have a bunch of excess production capacity - evidence that it actually existed has been limited at best.

They are basically all dictatorships - you can't really trust their numbers.

[InglewoodFan]

Originally Posted by Johnny Makarov

I don't get it but why couldn't Venezuela turn back into a decent country with those reserves? and fairly quickly.

Is the oil hard to extract there?

They do have a reasonable amount of heavy production. Great big inline heaters in the middle of jungle to get it flowing. My dad worked on a bunch of it, brought back some cool pictures of snakes.

My folks lived in Caracas for a while before Chavez. Absolutely loved it - safe, friendly people, beautiful climate. And then it all went to crap.

Originally Posted by bizaro86

OPEC has always CLAIMED to have a bunch of excess production capacity - evidence that it actually existed has been limited at best.

They are basically all dictatorships - you can't really trust their numbers.

I heard rumors that the last time SA really cranked up production they pushed their water injection so hard that they damaged formations and it limits their subsequent production. I'm not an upstream guy so take it with a grain of salt. Like you said, you can't trust much of anything out of SA.