- Imperial Oil, which is majority owned by Exxon, has decided to move ahead with "Aspen," a 75,000 bpd, C$2.6 billion oil sands project
- this decision was a big surprise considering the lack of pipeline exit capacity that has WCS trading at a $44/bbl discount to WTI
- it looked to be worse of a decision after a federal Judge subsequently dealt the Keystone-XL pipeline another blow
- meantime, oil prices have crashed as President Trump backtracked on the Iran sanctions by giving waivers to Iran's top-eight customers
- there are very good reasons why no oil sands projects have been green-lighted since 2013. Aspen shouldn't have either
- Exxon sees something on the horizon that the rest of us don't; or,
- Exxon is desperate to recoup some of their investment.
But it is amazing to see how much money the oil companies can make when times are good.
75,000 bopd x $15/bbl = $1.125 million / day.
$2.6 billion / $1.125 million = 2300 days = 6.3 years.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.