Private equity firms are leaving the tarsands

mentalfloss

mentalfloss

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Jun 28, 2010
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Consolidation Is Inevitable For Canada’s Oil Industry

The private equity industry is in a rush to leave Canada's oil sands—once a lucrative investment but no longer—as emission reduction takes priority. According to a Reuters report citing unnamed sources, there are at least a dozen such companies on sale right now.

Canadian oil companies are not in the best of places as the federal government of the country makes more climate pledges. As a result, capital spending is falling. Soon, production will follow.

oilprice.com

Consolidation Is Inevitable For Canada’s Oil Industry | OilPrice.com

Canada’s economically dependent oil industry is stuck between a rock and a hard place, with the government’s climate pledges scaring away potential investors
oilprice.com oilprice.com
 
Ron in Regina

Ron in Regina

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It’s amazing how easy it is to figure out what direction somebody’s coming from just from the phrasing in the first couple words in a thread like this.

When they call Oil Sands “Oil Sands” vs when they call Oil Sands “Tar Sands”….

Those that work in or around to directly benefit from the Oil Sands call it “Oil Sands”…..& those that just leach off the profits indirectly without any sweat equity or actually knowing anyone who does…. & just expect to be able to borrow Daddy’s car without ever having to fill the tank, those ones call Oil Sands “Tar Sands”….

Here’s some info on the topic: http://www.nrcan.gc.ca/science-and-...d-analysis/energy-facts/crude-oil-facts/20064
 
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Durry

Durry

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Private equity firms are gravitating towards the Oil Sands because that is where the big money is at.
Oil could soon reach $100/bbl.
 
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Ron in Regina

Ron in Regina

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  • Canada is the fourth largest producer and third largest exporter of oil in the world
  • 97% of Canada’s proven oil reserves are located in the oil sands
  • 98% of Canada’s oil exports go to the U.S. (at a significant discount, but somebody has to pay for Quebec’s continuing purchased entitlement)
  • The oil sands accounted for 63% of Canada’s oil production in 2019 or 2.95 million barrels per day. The oil sands have an estimated $325 billion of capital investment to date, including $10.2 billion in 2019.
  • This is all from the link 2 posts up.
  • The oil sands account for 12% of Canada’s total GHG emissions and 0.2% of global emissions. From 2000 to 2018 the emission intensity of oil sands operations dropped by approximately 36% as a result of technological and efficiency improvements, fewer venting emissions and reductions in the percentage of crude bitumen being upgraded to synthetic crude oil.
  • Oil sands development is subject to environmental standards that are among the most stringent in the world. The Government of Alberta requires that companies remediate and reclaim 100% of the land after the oil sands have been extracted.

    (Reclamation means that land is returned to a self-sustaining ecosystem with local vegetation and wildlife)
 
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pgs

pgs

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Ron in Regina said:
  • Canada is the fourth largest producer and third largest exporter of oil in the world
  • 97% of Canada’s proven oil reserves are located in the oil sands
  • 98% of Canada’s oil exports go to the U.S. (at a significant discount, but somebody has to pay for Quebec’s continuing purchased entitlement)
  • The oil sands accounted for 63% of Canada’s oil production in 2019 or 2.95 million barrels per day. The oil sands have an estimated $325 billion of capital investment to date, including $10.2 billion in 2019.
  • This is all from the link 2 posts up.
  • The oil sands account for 12% of Canada’s total GHG emissions and 0.2% of global emissions. From 2000 to 2018 the emission intensity of oil sands operations dropped by approximately 36% as a result of technological and efficiency improvements, fewer venting emissions and reductions in the percentage of crude bitumen being upgraded to synthetic crude oil.
  • Oil sands development is subject to environmental standards that are among the most stringent in the world. The Government of Alberta requires that companies remediate and reclaim 100% of the land after the oil sands have been extracted.

    (Reclamation means that land is returned to a self-sustaining ecosystem with local vegetation and wildlife)
Click to expand...
And as an added bonus the oil is no longer leaching into the water system .
 
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taxslave

taxslave

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mentalfloss said:
Consolidation Is Inevitable For Canada’s Oil Industry

The private equity industry is in a rush to leave Canada's oil sands—once a lucrative investment but no longer—as emission reduction takes priority. According to a Reuters report citing unnamed sources, there are at least a dozen such companies on sale right now.

Canadian oil companies are not in the best of places as the federal government of the country makes more climate pledges. As a result, capital spending is falling. Soon, production will follow.

oilprice.com

Consolidation Is Inevitable For Canada’s Oil Industry | OilPrice.com

Canada’s economically dependent oil industry is stuck between a rock and a hard place, with the government’s climate pledges scaring away potential investors
oilprice.com oilprice.com
Click to expand...
Of course they are leaving. It has nothing to do with oil, but the Prime Moron's open hostility to the west. Dump that retard and his ilk, and the money would come gushing back.
 
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Nick Danger

Nick Danger

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Are they leaving entirely, or just being more selective as to where they invest ? I have a couple of Canadian Equity mutual funds and Suncor and CNRL have always been among their larger holdings. These are the two "big guns" in the oilsands toady, both were in a decent financial position when the industry tanked in 2014/15, and took advantage of that by buying up other outfits that were not in as good a position to weather the storm. CNRL bought out Shell's oil sands holdings, Suncor scooped up controlling interest in Canadian Oil Sands which gave them control of Syncrude. We might just be looking at a "cabinet shuffle" more than a real exodus.

A big concern is that the Biden government doesn't appear to be too warm on Canadian oil any more. While it's been plain for a long time that Canadian oil needs an international market outside the US, we still have that nasty old pipeline issue to deal with. It's not that we don't have the markets, it's the ability to get our oil to them that's the issue. Tidewater pipelines.
 
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mentalfloss

mentalfloss

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taxslave said:
Of course they are leaving. It has nothing to do with oil, but the Prime Moron's open hostility to the west. Dump that retard and his ilk, and the money would come gushing back.
Click to expand...

Fourth time's a charm 😂
 
Dixie Cup

Dixie Cup

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mentalfloss said:
Consolidation Is Inevitable For Canada’s Oil Industry

The private equity industry is in a rush to leave Canada's oil sands—once a lucrative investment but no longer—as emission reduction takes priority. According to a Reuters report citing unnamed sources, there are at least a dozen such companies on sale right now.

Canadian oil companies are not in the best of places as the federal government of the country makes more climate pledges. As a result, capital spending is falling. Soon, production will follow.

oilprice.com

Consolidation Is Inevitable For Canada’s Oil Industry | OilPrice.com

Canada’s economically dependent oil industry is stuck between a rock and a hard place, with the government’s climate pledges scaring away potential investors
oilprice.com oilprice.com
Click to expand...
Yup, you can't fix stupid can you? We just voted him back in.
 
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