$30 barrel oil?

[ZenOps]

I'm going to jump on the crazy train and make a suggestion to big oilsands.

Instead of using natural gas to extract low grade crude - How about burning natural gas to melt silicon to make solar panels? If you run the numbers you actually get more MMBTU going solar (as long as you stretch it out 10 years) than all of the runaround trying to heat up frozen rock, extract and refine crude. Sure it still burns *some* carbon, but if the world decides to ditch the combustion engine car, then it might be the right move.

It would take a very long time to ramp up, as high quality silicon ingots take two weeks to cool from molten - But it could be done.

As mentioned before, it would totally destroy every patent holder (like Ford) and repair shop (electric cars basically have very little to diagnose as a "problem", and can last for 50 years before needing repair) But, you can't hold it back forever?





Strange phenomena in India seems to be catching on, When a TATA combustion car is too expensive to repair (too difficult to diagnose the thousands of parts any one of which can cause failure) within a few years - take out the combustion engine entirely and go electric. Run a diesel generator to charge battery on off times. True testament to the idea that people eventually find the best solution themselves.

[ExtraSlow]

So we were discussing federal and provincial investments in energy infrastructure early in the week. Did anything get announced? I anticipate hating whatever it is.

[AndyL]

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So we were discussing federal and provincial investments in energy infrastructure early in the week. Did anything get announced? I anticipate hating whatever it is.

Nope. Nothing yet.

I was expecting Seamus to announce the aid package... But as it was pointed out that was only going to occur if feds veto'd it. Thus Teck withdrawing it - let them off the hook.

[Brent.ff]

http://www.x-site-energy.com/

When bozos admit they're bozos.. They'll rebrand soon enough im sure.

[Darkane]

Sigh.

https://boereport.com/2020/03/02/meg...ct-globe-mail/

[lasimmon]

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So we were discussing federal and provincial investments in energy infrastructure early in the week. Did anything get announced? I anticipate hating whatever it is.

Not infrastructure but the province expanded the loan to the OWA by $100 million in the budget.

[ZenOps]

Carbon was fine for building a country, but now that is more or less finished with a half decent electrical system (which arguably isn't really necessary if you have local generation like rooftop solar) then it doesn't make as much sense to continue using crude, especially if it is capitally and energy intensive to extract.

It totally understandable. Oilsands is seen as "last resort" for many investors. Its literally like opening up the SPAM tins, which might actually be better off saving for future generations if there is some sort of decades long energy disaster (like a 100 year nuclear winter fallout, or meteorite impact)

[Darkane]

So despite the current global ongoings, it seems the USA has a point to prove.

Today EIA data released shows the states - yet again - setting a new record.

13,100,000 bbls/d.

Even though I predicted it, I’m starting to feel amazed.

https://www.eia.gov/dnav/pet/hist/Le...s=WCRFPUS2&f=W

Fun fact, USA production has gone up 1 million barrels year over year for early March.

Canada? Closed.
@ExtraSlow

[ExtraSlow]

At this point I halfway hope they produce so much oil goes to $10/bbl. Let the market prove supply and demand still works.

[pheoxs]

Suncor applied for their oil sands base mine replacement, they're expecting 6 years of regulatory hoops to get it approved so that it's operational for 2030, pretty crazy

[ZenOps]

I'd be hesitant to put money down on anything right about now. Assuming negative interest rates, the fundamentals of investing in socks to diamonds to refridgerators must come into question.

Which actually begs the question are US dollars on their last legs, and why would anyone sell oil for them? The second question is of course, if the USA is $23 trillion in debt, are negative interest rates "cheating" the rest of the world? IF you do -6% interest in one decade you can technically eliminate a $100 Trillion debt (or any number for that matter) at the expense of anyone who is crazy enough to keep on holding US dollars.

I don't want a $20 slice of avocado toast (which arguably Canada must sell one entire barrel of oil to afford), and Hollywood lost to the Korean "Parasite". The best way to waste 99 US cents is on a gatcha game made in Asia.

If there is an easy way to ditch the USA, let me know. $40,000 bitcoin possible?

Nasa Sucks.

[never]

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Suncor applied for their oil sands base mine replacement, they're expecting 6 years of regulatory hoops to get it approved so that it's operational for 2030, pretty crazy

A 6 year regulatory process (they're actually calling it 7 because they started in 2019 according to their IPD) isn't really out of the ordinary. Syncrude MLX was a mine extension 1/3 the size of BMX and the total regulatory process was about 7 years...initiation in 2012, regulatory application submission in 2014 and approval in 2019. And that only went through the AER process...a federal review wasn't triggered.

The new federal process front-loads a bunch of the effort...hopefully to help address some of the back end concerns we have seen with previous applications (though I may be overly optimistic).

[pheoxs]

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A 6 year regulatory process (they're actually calling it 7 because they started in 2019 according to their IPD) isn't really out of the ordinary. Syncrude MLX was a mine extension 1/3 the size of BMX and the total regulatory process was about 7 years...initiation in 2012, regulatory application submission in 2014 and approval in 2019. And that only went through the AER process...a federal review wasn't triggered.

The new federal process front-loads a bunch of the effort...hopefully to help address some of the back end concerns we have seen with previous applications (though I may be overly optimistic).

Definitely not out of the ordinary. Just shows how hard it is to get things approved given this isn't even a new mine, just a extension of their existing operations.

[never]

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Definitely not out of the ordinary. Just shows how hard it is to get things approved given this isn't even a new mine, just a extension of their existing operations.

To be fair, it is a 20,000 ha footprint which includes an external tailings area and some processing facilities so it is fairly substantial...I think Teck was 25,000-28,000 ha for context.

But regardless of the size, once people hear oil sands mine, everything is irrelevant. That was the issue with Syncrude MLX...7,000 ha footprint which included 2 mine pits, some ODA and RMS areas, a bridge over the MacKay and it did not include any new tailings features. Regulatory approval should have been a more simple process but that wasn't the case.

[dirtsniffer]

Supreme court will not hear a challenge to the TMX approval.

https://calgaryherald.com/pmn/news-p...1-c7bb0330287e

- - - Updated - - -

Corona Virus causes larger drop in oil consumption than the 2009 financial crisis.
https://calgaryherald.com/commoditie...f-b8995cdd7abf

[pheoxs]

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Supreme court will not hear a challenge to the TMX approval.

https://calgaryherald.com/pmn/news-p...1-c7bb0330287e

Good for TMX, but long term is that good or bad?

I vaguely remember that if it went to the supreme court, they heard it then shot it down that it might provide a stronger case precedent for future projects. But I don't know if that was actually the case or just people making stuff up.

[Misterman]

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Good for TMX, but long term is that good or bad?

I vaguely remember that if it went to the supreme court, they heard it then shot it down that it might provide a stronger case precedent for future projects. But I don't know if that was actually the case or just people making stuff up.

This is a great precedent going forward. The Supreme Court not even entertaining these terrorists BS claims to hold up production/construction. Just tell them to GTFO before they even get there.

[pheoxs]

Not oil related but LNG plant in Quebec is in a tough position after it's main investor backs out.

Warren Buffett's investment company Berkshire Hathaway has decided not to invest $4 billion in a liquefied natural gas (LNG) plant by the Saguenay port, according to Radio-Canada.

The marine terminal to ship LNG to overseas markets is slated to be built roughly 230 kilometres northeast of Quebec City, at a cost of $9.5 billion.

Stéphanie Fortin, head of communications for the company behind the project, GNL Québec, said that they lost the potential investor due to the current "Canadian political context."

She said with "instability" in the last few weeks, such as ongoing rail blockades, foreign investors are getting nervous.

This won't keep the project from progressing, Fortin said, nor will it mean job losses in the immediate future.

They say it won't stop the project but... finding another investor now given our governments inability to do anything about the protests seems slim

https://www.cbc.ca/news/canada/montr...ject-1.5486517

[dirtsniffer]

not happy to hear about a project getting shelved, hopefully this will help spur some coverage out east.

[arcticcat522]

I'm sure the Quebec government is looking for a new investment with Bombardier selling most of its business.....