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Just terrible in Fort McMurray May 5, 2016

Posted by hslu in Life, Oil.
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My heart goes out to the people of Fort McMurray who have been evacuated due to a ragging wild fire going through the middle of the town. The entire population of Fort McMurray, about 80,000, have been ordered to leave. The fire has consumed 1,600+ structures in the city and the damage could be in the billions.

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Fort McMurray was a small oil sand town when I visited it in the late 1980’s while working in Calgary, Alberta, Canada. Heavy oil is in my blood and oil sand has a special place in my heart because, except a two year period, I have worked on heavy oil and oil sand all my career.

I, along with a colleague from our Canadian branch, used to peddle a small boat up and down the Athabasca River near Fort McMurray to learn the unique geological features of the oil sand outcrops.

Well, memory from the good old days has faded away but the news of the terrible destruction to Fort McMurray reminded me of the happy days my family spent in Canada.

Time flies and too bad it only goes in one direction.

OPEC, oil price and unintended consequences November 28, 2014

Posted by hslu in Economics, Energy, Middle East, Oil.
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OPEC has decided to keep its production at 30 million barrels a day which was expected by the market. WTI is down to $70/bbl right after the news was announced. I guess that shale oil is selling below $60/bbl now which is below the costs of many shale oil projects.

Many articles talked about decline of US shale oil production which it will in time. But there is another angle to this headline: heavy oil and oil produced from oil sand projects face even higher pressure because prices for heavy oil are even lower but they cost more to produce.

Oil price will drift lower into the $60 range and more pain will be felt in the oil industry. Oil company stocks will face downward pressure until things stablize in the supply and demand picture in the world.

Wait to pick up some bargains when there is blood on the street.

There are fights breaking out on the main street but only some blood is spilled. More actions will come.

If I have to guess, just a guess, the bottom is closer to current level than the top is.

Well, your guess is just as good as mine.

American oil companies out. Italian oil company in. January 28, 2010

Posted by hslu in 5584.
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PDVSA, the national oil company of Venezuela, just signed a contract with Eni, an Italian oil company partly owned by Italian government.

The contact, signed in the presence of Chávez, allows Eni to work with PDVSA to develop a heavy oil block in the Orinoco Belt heavy oil field.

Sorry, ExxonMobil, ChevronTexaco and ConocoPhillips. The America companies are not allowed.

The estimated heavy oil resource in the Orinoco Belt is 1.3 trillion barrels; the largest heavy oil filed in the world. With new and current technology, Venezuela has more recoverable oil than what Saudi Arabia has.

Heavy oil is less valuable than Saudi light. No doubt about it. But, after most of the light oil is gone, whom do you (America) ask for more gas? Ghostbusters?

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