Quote:
Originally Posted by LeftCoaster
Sounds pretty fancy. In all honesty I have no knowledge on the technical engineering side of the business, I'm a real estate guy and only really know the overt and latent demand drivers in the markets I operate, one of which happens to be Alberta.
I fully anticipate innovation in the sector to reduce per barrel costs, however I can't envision a scenario where they are able to compete dollar for dollar with basic well extraction so I would still think demand shock will continue to disproportionately effect the oil sands. That said I don't see demand going anywhere but up in the next decade with your standard dips and boosts along the way of course.
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Remember that other sources have other additional costs. The US spent $1 trillion on the Iraq war, for example, and who knows how much they spend to maintain all their military bases in the Middle East. Those bases aren’t exclusively there for the purpose of controlling the oil in the region, but that’s a large part of the reason. And China is now dependent on places like Angola for its oil, which can’t make them feel too secure. Canadian oil offers many benefits, which is why both the US and China want to buy our oil instead of the oil they’re currently importing.