ECON 1101 Lecture Notes - Lecture 2: Pickup Truck, Synthetic Crude, Oil Sands
12 Feb 2018
School
Department
Course
Professor
Document Summary
Therefore, the oil sands supply is more elastic in the long run. Now, oil sands operators are scrambling to limit the damage, as crude prices hover near seven- year lows. The cuts, though, won"t necessarily translate into lower production. Oil sands production is expected to increase by 25%, to 4. 8 million barrels a day, according to january estimates by the. Canadian association of petroleum producers, partly because of new projects moving into production. The enormous projects are just too difficult to switch off, and the companies must keep pumping crude to cover the sizable debt on their multibillion-dollar investments. They also don"t want to cede market share to producers in other countries. An oil sands project takes five to 10 years to design and build, and they have a life span of 25 to. Fort hills, a project now under construction in a partnership led by suncor, has a budget of 13. 5 billion canadian dollars.
