Re: oil substitutes

"low key" <lowkey_e@xxxxxxxxxxx> wrote in
news:vuCdnUnPKaoF6JLeRVn-uQ@xxxxxxxxxx:

>
> "Puppet_Sock" <puppet_sock@xxxxxxxxxxx> wrote in message
> news:1125082024.400330.34330@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>> Bateau wrote:
>> [regarding crude oil]
>>> For the price to drop there would have to be an increase in supply
>>> or a decrease in demand. Both of which are hilariously impossible.
>>
>> The production costs for Alberta tar sands are somewhere round
>> about $25/bbl.
>
> More like $15/barrel.


It looks like the $12-15 a barrel figures are for operating costs. (Though
I haven't seen anything in any of the articles that is unambiguous either
way.) From http://www.energybulletin.net/4379.html , near the bottom,

"Syncrude Canada's project to boost capacity by 100,000 barrels a day to
about 350,000 is expected to cost $6 billion by mid-2006"

Including capitol costs, the total production costs may be around
$25/barrel.









> http://www.energybulletin.net/4379.html
>
> 'Shell is spending $13.70 per barrel at its Athabasca project in
> Canada, higher than drilling projects, said Mather. Oil executives say
> that crude prices near $45 a barrel more than offset the extra cost.'
> [...]
> ' Suncor Energy spends C$12 ($9.62) to C$12.50 to mine and upgrade a
> barrel of oil.'
>
> http://www.opinionjournal.com/extra/?id=110006228
>
> 'In sum, it costs under $5 a barrel to pump oil out from under the
> sand in Iraq, and about $15 to melt it out of the sand in Alberta.'
>
> http://www.usask.ca/education/ideas/tplan/sslp/yukon/bitumont.htm
>
> 'In 1996, it cost $ 13.69 to produce a barrel of oil. Syncrude's
> production costs in 1994 was $ 14.95 per barrel with the goal of
> reaching $12 per barrel in 5 years. In 1994, Suncor's production costs
> were $14 per barrel, with projected costs of $12 per barrel by 1998'
>
> http://www.growley.com/war/can-oil.html
>
> 'Until the mid-1990s, producing a barrel of oil cost upwards of $15
> (U.S.). That didn't leave much room for things like profits when the
> price of oil was at $20 - and it seemed especially ridiculous given
> that some OPEC countries can produce a barrel of oil for about $5 or
> less.
>
> Then Suncor Energy, thanks to prodding by vice-president Dee
> Parkinson, cut a huge chunk out of its costs starting in 1995 by
> moving from the balky and expensive bucketwheels it had been using to
> giant shovels and trucks. Suncor and Syncrude (which copied the move)
> have cut their costs to $9 a barrel - and that success, combined with
> the runup in oil prices over the past couple of years, has spurred
> dozens of imitators to look at oil-sands projects. Conoco,
> Exxon-Mobil, Shell and other companies both in the United States and
> elsewhere have done feasibility studies, and more than $20-billion
> worth of potential oil sands projects are in the planning stages.'
>
>

.

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