Posted on Sustainabilitank.info on February 29th, 2008
by Pincas Jawetz (PJ@SustainabiliTank.com)
A so called “Investment U” claims that it can show us how to profit from the present woes - political and economical. Here is where theu suggest one puts his money:
Alberta, Canada - oil sands have an Oil Reserve 8 Times Bigger than Saudi Arabia’s and while global oil demand still grows higher by the day, supplies are in a constant state of flux, there will be more emphasis on reaching out for this resource.
The Middle East’s tinder is constantly catching fire, and the other major crude oil players are either unfriendly (like Venezuela and Nigeria) or simply running out of oil (like Mexico and the North Sea region). On the other hand Alberta, Canada’s oil sands, once too costly to process at a profit, have suddenly become a veritable black gold mine.
Now…
The cost of refining crude oil from tar sands has dropped from $29.63 a barrel to $13.21 – and continues to fall as oil production ramps up.
Canada’s sands contain up to 2.5 trillion barrels of oil – more than the reserves of every OPEC country combined.
With the razor-thin gap between supply and demand – and the volatility of producing nations not priced in – oil’s price is undervalued at $90+ a barrel.
Now - obviously… above does not spend a second on our other nightmare issues - the real local and global cost of producing from that resource. The destruction of the environment in Alberta, the health problems to local folks from the heavy metal residues that are leached into the water reserves, and the CO2 emissions that have a global impact - global warming/climate change. So - that oil’s production cost is miserably undervalued and cannot be calculated by simple engineering calculations.






















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