# Breakeven point for oil sand



## fletcher m (May 9, 2012)

Does anyone know the breakeven point for producing oil from oilsand?

With the canadian economy relient on this commodity, and crude oil now below $98 per barrel, how safe are all the oil jobs in oilsands?

thanks.


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## Auld Yin (Mar 10, 2009)

It was reported just the other day to be $80/barrel.


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## fletcher m (May 9, 2012)

Too close for comfort, so what do folks want? Cheaper fuel and no jobs, or more expensive fuel and a well paid job?


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## RePete (Jan 21, 2012)

The Alberta economy is far more dependent on the oil sands than Canada as a whole. But yes, 76-80 is the point where profits dwindle. But if we think about it, oil is finite. The more China continues to increase it's fossil fuel use and the more unstable the middle east becomes the more important this source becomes. It's a blip as economies continue to falter and will return.


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## fletcher m (May 9, 2012)

RePete said:


> The Alberta economy is far more dependent on the oil sands than Canada as a whole. But yes, 76-80 is the point where profits dwindle. But if we think about it, oil is finite. The more China continues to increase it's fossil fuel use and the more unstable the middle east becomes the more important this source becomes. It's a blip as economies continue to falter and will return.


Agreed, it is finite, though there comes a time when it is not economically viable to process the oil sands. Argentina has recently found massive reserves and it seems that more and more oil is still being found around the world.

This, together with a global slump (read depression) will really test the resolve of those companies and countries that process the oilsands. lets face it, nodding donkeys in the middle east V heavy industrial processing, if the arabs decide to keep pumping and reduce the price further, they will still be making heaps of profit when canada may have to moth ball all the sites and wait for better times.

Now how will that affect jobs and the economy in Canada?


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## scuba ken (Jul 23, 2012)

all the projects have different break evens, looking at some of the older projects, they bid the work years ago and were the only ones who didnt slow down in the 2008 slump.
Of course it will go up and down, the best way to look at it is this.
Make your money, save your money and spend your money, just the same as anywhere else.
most people live in the camps and have life styles elsewhere in canada that reflect a good income, and save the additional money for that "rainy day"


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## PaulMan (Jul 17, 2012)

fletcher m said:


> Agreed, it is finite, though there comes a time when it is not economically viable to process the oil sands. Argentina has recently found massive reserves and it seems that more and more oil is still being found around the world.
> 
> This, together with a global slump (read depression) will really test the resolve of those companies and countries that process the oilsands. lets face it, nodding donkeys in the middle east V heavy industrial processing, if the arabs decide to keep pumping and reduce the price further, they will still be making heaps of profit when canada may have to moth ball all the sites and wait for better times.
> 
> Now how will that affect jobs and the economy in Canada?



They will not need to do this. The demand for oil is rising exponentially everyday and so will the price. The tar sand maybe not really a stable and profitable economic area right now, but I foresee that in the next 10 to 15 years it will become the motor of Canada's economy.


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## fletcher m (May 9, 2012)

PaulMan said:


> They will not need to do this. The demand for oil is rising exponentially everyday and so will the price. The tar sand maybe not really a stable and profitable economic area right now, but I foresee that in the next 10 to 15 years it will become the motor of Canada's economy.


By then i'll be 63! At least the kids will get a job in oil sand, if they want it, in the meantime, i'll do without work and a social safety net for the next 15 years.

I accept that some operations will have less overheads and therefore a lower breakeven, but when will the pay reflect that, paying really high wages to extract this oil is unsustainable? Do you foresee salaries coming down once the threashold is breached? Then the breakeven is lower and the production is more sustainable.


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## scuba ken (Jul 23, 2012)

Right now 180k buys. A gravel truck driver, with a 30k bonus after 90 days. Is this sustainable ? This is more than a good surgeon earns a year, it's disgusting and un needed, but in the mean while I will cash in on every penny I can, I don't even own a car, well not one that I have to pay for. 

In the words of the prophet "St. George", fill your bloody boots and come back with a sack ! 

Canada is the greatest Country in the world ! ! ! ! Weather is a bit suspect, but that's what Mexico is for


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## CDN2012 (Jun 15, 2011)

Here's an article about how much it costs different oil producing countries to produce a single barrel of oil. It seems it cost Canada $55.19 per barrel.
Opec's gift: high oil prices | Energy | News | Financial Post


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## scuba ken (Jul 23, 2012)

I have been lucky enough to work in several countries supporting the oil industry, I have never seen so much get paid to workers, or benefit packages or standards of living, I can quite believe the "pass on costs" involved with the extraction, handling and up grading, the question is . . . . . . . . . . . .how long will the world sustain a fuel cost increase like we are currently seeing. Europe is on it's knee's with fuel at the moment, and they make very little income from it's sale.


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## barry6001 (Aug 9, 2012)

Agreed that oil is very expensive to produce here in Canada but at the rate technology is advancing these days, it will be in the not too distant future that we see that production cost lower.

Canada has the 3rd largest proven oil reserves in the world, and out of the top 5 countries it is the only one with a stable economy and uncorrupt government. When we do finally master that art of cheap oil recovery from the sands, Canada is going to be UNTOUCHABLE!!!!


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