Alberta manufacturing sales plunge 13% in year as most provinces see upswing

[Murphy]

Saudi oil smells better coming out the exhaust of all vehicles. It is the pleasant aroma of figs, pomegranates and oranges, together in a regular or high test blend. It will take a while for Albertans to get used to walking or driving to the mosque, but all things come in time.

 

[tay]

We produce enough oil to supply Canada's needs. We don't NEED to buy Saudi oil, so it is irrelevant how much they can produce, or what they sell it at.

.

But if the price of Oil is not high enough for the producers in Alberta to make a profit there will be no Oil to ship East.


As for Alta's manufacturing falling 13%, I'm surprised it's that low of a fall.....

 

[MHz]

The profit is comes from the west getting the money that is sent to Saudi at the moment. That is the start of the recession, 13% is not the final number.

 

[tay]

The profit is comes from the west getting the money that is sent to Saudi at the moment. That is the start of the recession, 13% is not the final number.

Saudi Oil costs $10.00 a barrel to extract.


Tar Sands Oil needs $35.00 to break even.

 

[Angstrom]

But if the price of Oil is not high enough for the producers in Alberta to make a profit there will be no Oil to ship East.


As for Alta's manufacturing falling 13%, I'm surprised it's that low of a fall.....

That's because investments that were already spent to extract oil, are still extracting oil even with the drop in prices. Because the money is already spent on the infrastructure needed to extract.

Saudi Oil costs $10.00 a barrel to extract.


Tar Sands Oil needs $35.00 to break even.

Once the 35.00 dollar has been spent on the infrastructure, Extraction costs next to nothing. It's the initial cost that's high.

Once the system is in place it practically happens by itself. The oil extracts itself, until none is left.

 

[Durry]

Tar Sands Oil needs $35.00 to break even.

It's not tar sands, it's Oil Sands and it's also not $35/bbl.

 

[gerryh]

Saudi Oil costs $10.00 a barrel to extract.


Tar Sands Oil needs $35.00 to break even.

and your point is....what? It doesn't really matter what the "break even" price is. The major producers have already said that they will not shut down production because of the costs entailed with the shut down and the eventual restart. In other words, it would cost them more to shut it down and restart then to just keep production going.

 

[darkbeaver]

Don't come to Nova Scotia unless you must.

 

[Ludlow]

Don't come to Nova Scotia unless you must.

I may stop by to use the shytter and then move on

 

[tay]

That's because investments that were already spent to extract oil, are still extracting oil even with the drop in prices. Because the money is already spent on the infrastructure needed to extract.

Once the 35.00 dollar has been spent on the infrastructure, Extraction costs next to nothing. It's the initial cost that's high.

Once the system is in place it practically happens by itself. The oil extracts itself, until none is left.

I don't think you understand what's required . I'll leave you with a brief description of the process as presented by Syncrude themselves..


And the Middle East Oil is a higher quality to start with and requires little refining and little cost to drill and pump up Oil through the desert sand. The following steps (costs) are not required for pure Oil.....


STEP 1.0: MINING After removing the overburden – the rock, sand and clay material typically found above the oil sands layer – Syncrude's fleet of trucks and shovels excavate the oil sand. The oil sand is subsequently mixed with water to create a slurry that is pumped to extraction facilities.

STEP 2.0: EXTRACTION Slurry from the mines is fed into the Primary Separation Vessels. There, bitumen floats to the surface as froth. The bitumen froth is diluted with naphtha and then fed into centrifuges that further separate the liquids and solids.

STEP 2.1: FROTH TREATMENT In the final step of the extraction process, the naphtha is removed in the Diluent Recovery Units, leaving only pure bitumen. UTILITIES Syncrude's utilities operations produce primarily steam and electricity as well as treat the water required to run plant operations. Syncrude is self-reliant in electrical power generation and is a net exporter of electricity to the Alberta power grid.

STEP 3.0: UPGRADING The bitumen is fed into either a coker or the LC finer where it is thermally cracked or hydroprocessed to produce hydrocarbon gases, naphtha and gas oil. The liquid products are conveyed to the hydrotreating units for final clean-up.

STEP 3.1: SECONDARY UPGRADING Hydrotreating is the final step in converting bitumen to synthetic crude oil. In the hydrotreating units, hydrogen is used to remove sulphur and nitrogen compounds.

STEP 4.0: BLENDING/STORAGE The hydrotreated components are blended together, resulting in a sweet synthetic crude oil. The oil is then transported via pipeline to refineries throughout Canada and the U.S. -

Canadian Oil Sands Limited - Operations - Production Process


Syncrude Canada Ltd, a joint venture project in northern Alberta at which mined oil sands bitumen is upgraded into refinery-ready synthetic crude has a break-even production costs of $46 US a barrel, according to a presentation from Siren Fisekci, vice president of investor and corporate relations.

U.S. crude oil, also known as West Texas Intermediate or WTI CLc1, was down 50 cents at $40.30 US a barrel at mid-morning Thursday, after hitting a new 6-1/2-year low of $40.21 US. That means Syncrude's losses could be as steep as nearly $10 US a barrel to produce fully upgraded crude.

Syncrude pegs losses at up to $10/barrel as oil prices collapse - BNN News

 

[Angstrom]

I don't think you understand what's required . I'll leave you with a brief description of the process as presented by Syncrude themselves..


And the Middle East Oil is a higher quality to start with and requires little refining and little cost to drill and pump up Oil through the desert sand. The following steps (costs) are not required for pure Oil.....


STEP 1.0: MINING After removing the overburden – the rock, sand and clay material typically found above the oil sands layer – Syncrude's fleet of trucks and shovels excavate the oil sand. The oil sand is subsequently mixed with water to create a slurry that is pumped to extraction facilities.

STEP 2.0: EXTRACTION Slurry from the mines is fed into the Primary Separation Vessels. There, bitumen floats to the surface as froth. The bitumen froth is diluted with naphtha and then fed into centrifuges that further separate the liquids and solids.

STEP 2.1: FROTH TREATMENT In the final step of the extraction process, the naphtha is removed in the Diluent Recovery Units, leaving only pure bitumen. UTILITIES Syncrude's utilities operations produce primarily steam and electricity as well as treat the water required to run plant operations. Syncrude is self-reliant in electrical power generation and is a net exporter of electricity to the Alberta power grid.

STEP 3.0: UPGRADING The bitumen is fed into either a coker or the LC finer where it is thermally cracked or hydroprocessed to produce hydrocarbon gases, naphtha and gas oil. The liquid products are conveyed to the hydrotreating units for final clean-up.

STEP 3.1: SECONDARY UPGRADING Hydrotreating is the final step in converting bitumen to synthetic crude oil. In the hydrotreating units, hydrogen is used to remove sulphur and nitrogen compounds.

STEP 4.0: BLENDING/STORAGE The hydrotreated components are blended together, resulting in a sweet synthetic crude oil. The oil is then transported via pipeline to refineries throughout Canada and the U.S. -

Canadian Oil Sands Limited - Operations - Production Process


Syncrude Canada Ltd, a joint venture project in northern Alberta at which mined oil sands bitumen is upgraded into refinery-ready synthetic crude has a break-even production costs of $46 US a barrel, according to a presentation from Siren Fisekci, vice president of investor and corporate relations.

U.S. crude oil, also known as West Texas Intermediate or WTI CLc1, was down 50 cents at $40.30 US a barrel at mid-morning Thursday, after hitting a new 6-1/2-year low of $40.21 US. That means Syncrude's losses could be as steep as nearly $10 US a barrel to produce fully upgraded crude.

Syncrude pegs losses at up to $10/barrel as oil prices collapse - BNN News

Now imagine the hundred of billions already invested to make all of that processes achievable. Investments they wouldn't get anything back from if they walked away.

 

[taxslave]

But if the price of Oil is not high enough for the producers in Alberta to make a profit there will be no Oil to ship East.


As for Alta's manufacturing falling 13%, I'm surprised it's that low of a fall.....

Percentages can be deceiving. If you have four manufacturers and one shuts down that is 25% drop.