Canadian Natural Resources Ltd (TSE:CNQ) was hammered by inflation at its last phase of its Horizon oil sands project, which came in over budget to the tune of 43 percent.
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
Showing posts with label Oil Sands. Show all posts
Showing posts with label Oil Sands. Show all posts
Tuesday, May 18, 2010
Thursday, May 13, 2010
Penn West Energy Trust (TSE:PWT-UN) Oil Sands Deal with China
Penn West Energy Trust (TSE:PWT-UN)(NYSE:PWE) has entered into a deal with China Investment Corp for $805 million, the second major deal in a year by the sovereign wealth fund from China for a Canadian company. Last year CIC took a 17.2 stake in Teck Resources (TSE:TCK-b), a major Canadian mining company.
Terms of the deal are China Investment will pay C$312 million up-front, and the another C$505 million for development of the oil sands project.
Penn West Energy is selling 45 percent of their stake to CIC in order to gain access to the cash they needed.
Penn's major contribution is the land they own in the oil sands region, which they'll use the cash to develop.
CIC wil also take a 5 percent stake in Penn West for C$435 million.
Assets held by Penn West in the oil sands is 237,000 acres.
Terms of the deal are China Investment will pay C$312 million up-front, and the another C$505 million for development of the oil sands project.
Penn West Energy is selling 45 percent of their stake to CIC in order to gain access to the cash they needed.
Penn's major contribution is the land they own in the oil sands region, which they'll use the cash to develop.
CIC wil also take a 5 percent stake in Penn West for C$435 million.
Assets held by Penn West in the oil sands is 237,000 acres.
Friday, April 2, 2010
Canada: Ignore Oilsands Critics
Canada Oilsands
The attempt by leftist liberal socialist to paint Canada's oilsands region as a threat to the environment has no proof behind it whatsover, and the idea they'r contributing to the increasingly dubious and fictional idea of climate change, must be resisted by the people in the provence and its politicians.
This is nothing more than envy and attacks by those who know nothing of what's going on, and it doesn't bother them to lie outright about it to the world in order to manipulate their own agendas.
Recent exposure of the hoax of climate change from hacked e-mails has proven there is no science behind the assertions of climate change, and is a religion and belief system rather than based on empirical evidence.
My suggestion is for Canada to ignore oilsands critics and keep working to supply the world its energy needs and help people keep good jobs.
The strategy of these critics is obvious, which is to harass and pressure so much they force companies and governments to change their policies and practices to such a level that it almost becomes economically impossible to extract the oil at prices which can be afforded.
Then the wet dream of the liberal socialists is to supposedly supplant it with clean energy sources, which aren't even close to existing in quantities to meet demand, or would cost so much it the poor couldn't afford it. That's why they're attempting to change policies in order to increase prices so their substitutes will seem affordable to consumers.
Canada, I hope you don't fall for this lie and continue to do the good job in the oilsands.
The attempt by leftist liberal socialist to paint Canada's oilsands region as a threat to the environment has no proof behind it whatsover, and the idea they'r contributing to the increasingly dubious and fictional idea of climate change, must be resisted by the people in the provence and its politicians.
This is nothing more than envy and attacks by those who know nothing of what's going on, and it doesn't bother them to lie outright about it to the world in order to manipulate their own agendas.
Recent exposure of the hoax of climate change from hacked e-mails has proven there is no science behind the assertions of climate change, and is a religion and belief system rather than based on empirical evidence.
My suggestion is for Canada to ignore oilsands critics and keep working to supply the world its energy needs and help people keep good jobs.
The strategy of these critics is obvious, which is to harass and pressure so much they force companies and governments to change their policies and practices to such a level that it almost becomes economically impossible to extract the oil at prices which can be afforded.
Then the wet dream of the liberal socialists is to supposedly supplant it with clean energy sources, which aren't even close to existing in quantities to meet demand, or would cost so much it the poor couldn't afford it. That's why they're attempting to change policies in order to increase prices so their substitutes will seem affordable to consumers.
Canada, I hope you don't fall for this lie and continue to do the good job in the oilsands.
Wednesday, March 10, 2010
Exxon Mobil (NYSE:XOM) Chasing Shale Fields
Exxon Mobil and Shale
Slow to get into the enormous potential represented by shale fields, Exxon Mobil has now smelled the roses and is sprinting to catch up with some of its rivals who have been quietly working to cut costs to extract oil and gas from teh shale.
This is why Exxon recently bid $31 billion to acquire XTO Energy (NYSE:XTO) to get back ahead of the curve. XTO is the leading company which extracts energy from what is called "unconventional" sources.
With most large discoveries behind oil and gas companies (possibly other than those under the ocean floor), large energy companies are looking for new sources of gas and oil, with shale being the next wave of source for the industry.
Exxon Mobil and Shale
Slow to get into the enormous potential represented by shale fields, Exxon Mobil has now smelled the roses and is sprinting to catch up with some of its rivals who have been quietly working to cut costs to extract oil and gas from teh shale.
This is why Exxon recently bid $31 billion to acquire XTO Energy (NYSE:XTO) to get back ahead of the curve. XTO is the leading company which extracts energy from what is called "unconventional" sources.
With most large discoveries behind oil and gas companies (possibly other than those under the ocean floor), large energy companies are looking for new sources of gas and oil, with shale being the next wave of source for the industry.
Exxon Mobil and Shale
Friday, August 22, 2008
Warren Buffett Cools off Speculators in Canadian Oil Sands Companies
With the lid being blown off the recent, secretive trip of Warren Buffett and Bill Gates to the Canadian Oil Sands, where they toured the Canadian Natural's C$9.3 billion ($8.9 billion) Horizon oil sands mining and synthetic crude processing operation, Warren Buffett made an appearance on CNBC's Squawk Box to make it clear he and Gates were only touring the facilities on a fact-finding mission, and weren't going to invest in the "Sands" at this time.
Oil Sands-related stocks on the Toronto Exchange surged on the news that Buffett and Gates had toured the area, with speculators bidding up a number of the oil stocks.
When Buffett made the announcement, the oil stocks plunged back to normal rates.
Oil Sands-related stocks on the Toronto Exchange surged on the news that Buffett and Gates had toured the area, with speculators bidding up a number of the oil stocks.
When Buffett made the announcement, the oil stocks plunged back to normal rates.
Tuesday, August 19, 2008
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