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Oilsands an emerging global growth star
9 z' r$ F3 u1 J3 G) l% lExxonMobil forecast predicts output of four million barrels a day by 2030
; N5 w. I T/ CGordon Jaremko, The Edmonton Journal/ A2 G( b# ^2 `. s9 x
Published: 2:37 am
' n3 V5 r% [" ~& l' E1 C# hEDMONTON - As oil leaps towards a new landmark high of $100 US a barrel, the world's top investor-owned producer has singled out Alberta as an emerging global star of production growth.
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9 p4 L+ e; y( w. u' f! EOilsands output will multiply fourfold to more than four million barrels daily by 2030, ExxonMobil Corp. predicts in a new international industry outlook report. And that forecast errs on the conservative side by projecting "fundamentals" of demand and supply trends instead of relying on prices to stay sky-high, ExxonMobil spokesman Allan Jeffers said Tuesday.
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% d; V" \# A/ k# n& SOil jumped to $96.67 a barrel, up $2.69 in New York trading Tuesday on fears of global supply disruptions after storms battered North Sea production platforms and guerrillas attacked a pipeline in Yemen.8 G6 a, A9 h; D, W* d* A- O0 A: Z
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Gasoline prices in Edmonton were 99.9 cents per litre at many stations on Tuesday.$ ^' Q7 f* t% M! b S4 ~2 \1 C
Larry Wong, The Journal
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9 J; Z( D! t& p$ ^" q/ S6 i1 sEdmonton refinery postings for Alberta output Tuesday ranged from $60.74 for low-grade heavy crude to $91.11 for premium oilsands synthetic production. The Canadian benchmarks are translations of international prices, adjusted for pipeline tolls and currency exchange rates.' ^$ r& Y( q! U: ?5 d* Q& K
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ExxonMobil's high oilsands expectations are realistic and reasonable, said Bob Dunbar, an Alberta industry veteran whose Strategy West Inc. specializes in the field.2 ` G' E' X; E1 S7 o% H
* a0 W: ^4 r8 K. f/ K: O4 bOutput from the northern bitumen belt would grow to six million barrels a day if all known projects were built on their announced schedules, Dunbar said., y0 e0 v5 I, ~
4 Z; f: i' K/ G- ^ }While no one believes the current spike will last, the looming new record high is seen as confirming that a new era of premium prices has arrived to stay, he said.
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When the oilsands rush began in the late 1990s developers only relied on markets to stay in a range of $20 to $30 a barrel. To be profitable, new projects today count on sustained averages in a higher band of $60 to $70, Dunbar estimated. |
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