{"id":40644,"date":"2018-11-17T10:06:50","date_gmt":"2018-11-17T15:06:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40644"},"modified":"2018-11-17T10:06:50","modified_gmt":"2018-11-17T15:06:50","slug":"tar-sands-operations-go-from-bad-to-worse-now-losing-billions-a-month","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40644","title":{"rendered":"TAR SANDS OPERATIONS GO FROM BAD TO WORSE: Now Losing Billions A Month"},"content":{"rendered":"
\n

TAR SANDS OPERATIONS GO FROM BAD TO WORSE: Now Losing Billions A Month<\/a><\/h3>\n<\/header>\n
\n

The situation at Canada\u2019s Alberta Tar Sands Operations has gone from bad to worse as the super-low oil price is now costing the industry billions of dollars each month.\u00a0 Unbelievably, the price for the Western Canadian Select heavy oil fell to a gut-wrenching $14.65 yesterday down from a high of $58 in May.\u00a0 Tar sands oil is now selling at an amazing $40 discount to U.S. West Texas Oil which is trading at $56.<\/p>\n

The main reasons for the falling price of Alberta tar sands are due to Canadian pipelines full to capacity as well as midwest U.S. refineries shut down for seasonal maintenance.<\/strong>\u00a0 Furthermore, the announcement by a U.S. Federal Judge to block the construction of the Keystone XL Pipeline on November 9th, didn\u2019t help.<\/p>\n

According to data from the Natural Resources Canada, the Alberta Tar Sands Operations were producing 2.7 million barrels per day (mbd) of oil in 2017.\u00a0 I would imagine production this year is likely to reach close to 3 mbd.\u00a0 The largest tar sands producer in Alberta is Suncor.\u00a0 Suncor produced a record 476,000 barrels per day of tar sands in the third quarter of 2018.<\/p>\n

Now, Suncor reported a handsome $1.4 billion profit in Q3 2018 on $8.3 billion in revenues.\u00a0 However, that profit was based on much higher Western Canadian Select (WCS) oil price which was trading over an average of $35 for the quarter.\u00a0 Unfortunately, the average price of WCS so far in the fourth quarter is $20.75.\u00a0 And, if the price of WCS stays at the current low price, the tar sands operators will be receiving less than $20 a barrel.<\/p>\n

In the article,\u00a0Capacity shortages costing Canadian producers $100M\/day<\/strong><\/em><\/a>, it stated:<\/p>\n

\u201cHeavy-oil producers are getting 40 percent of what they normally would be paid if we had access to markets,\u201d said Grant Fagerheim, CEO of Calgary-based Whitecap Resources, which produces about 60,000 barrels per day.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

TAR SANDS OPERATIONS GO FROM BAD TO WORSE: Now Losing Billions A Month The situation at Canada\u2019s Alberta Tar Sands Operations has gone from bad to worse as the super-low oil price is now costing the industry billions of dollars each month.\u00a0 Unbelievably, the price for the Western Canadian Select heavy oil fell to a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1082,103,4248,592,4523,1476,12073,781,3466],"class_list":["post-40644","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-alberta","tag-canada","tag-canadian-oil-sands","tag-oil-price","tag-oil-sands","tag-pipelines","tag-srsrocco-report","tag-tar-sands","tag-us-refineries"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40644"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40644\/revisions"}],"predecessor-version":[{"id":40645,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40644\/revisions\/40645"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}