bp oil spill estimated cost

1 billion acquisition for a total a larger share of Canada's oil sands

After a year and a half of negotiations, Total French leader Oil, has purchased the Canadian oil sands UTS Energy. The acquisition has led to a price of U.S. $ 1 billion, twice the supply original made in early 2009. The acquisition is a sign that Total is confident that oil prices with the resumption of the future by giving the oil sands region have a significant influence on the future reserves.

The land has changed hands, representing a reduction of 20% in Fort Hills oil project sands. Operations in this region use open pit mining of bitumen, and the initial phase is estimated to produce 160,000 barrels day (bpd). The costs of mining and refineries are solid, leaving the project on hold until recovery of oil prices.

Acquisition total leaf able to obtain 680 million barrels of bitumen project at a cost of $ 0.62 per barrel. Given the capital investment of 10 billion dollars and refining costs, leaving the cost of producing a barrel of oil around $ 50.

Total is no stranger to exploitation Canadian oil sands. In fact, they already have a 75% share in the mine Joslyn (200,000 barrels per day) and a 50% stake in the Surmont, using steam injection to melt asphalt on the ground rather than mining activities (110,000 bpd potential). Total leaders issued a statement expressing his belief that the supply of available oil in the world will soon reach 95 million bpd, and strong demand will sands projects Tar incredibly profitable.

Those who do not benefit directly from the booming oil industry are not as good eyes sands projects sands. Environmentalists are concerned about the impact of opencast mining in Canada's forests and the overexploitation of water to refine the bitumen into a form that can easily be transported by pipelines already in place.

In view of the spill BP, politicians and environmentalists have joined forces to fight against the recent TransCanada Keystone XL initiative. The project will be $ 7000000000 1.1 million barrels per day of crude tar refinery in the Gulf of Mexico. There is some pressure on the Secretary of State, Hillary Clinton, to block the permits necessary for the international pipeline.

U.S. should reject this opportunity to partner with local initiatives oil? As supply and demand begin to rebalance the oil industry, we can find the pipe at an incredible value. Do not discredit environmentalists, but Canada is not about to stop the oil sands, and if we are not buying the raw product, Total will have no difficulty find someone to do it.

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