02-27-2015, 11:05 PM
The operational cost of extracting bitumen from Canada's oil sands tops out at $37/bbl for in-situ projects and $40/bbl for mining projects, according to Wood Mackenzie's latest analysis. Callan McMahon, principal analyst for Wood Mackenzie, says this is amongst the highest of all project types globally. "With low oil prices, the oil sands region's cash flows will fall by $23 billion in 2015 and 2016 combined," he adds.
Oil sands cash flows to fall by $23 billion, Wood Mackenzie says
A raft of small LNG facilities in China including some developed by Xinjiang-based Guanghui Energy Co., demonstrated construction costs as low as $500 per metric ton of LNG capacity, compared with the $1,500 typical of megaprojects, Stoppard said. “The industry is scratching its head and trying to understand why small, peaking LNG plants in China appear to cost so much less,” Stoppard said.
Small LNG is in as oil price collapse crimps megaproject spending
Three months after Saudi Arabia made clear it was going to let oil prices keep tumbling, the strategy is showing signs of working. U.S. drillers are idling rigs at a record pace, gutting investment plans and laying off thousands of workers.
Saudis’ Oil Price War Is Paying Off - Bloomberg Business
Alberta’s energy producers are pivoting toward developing gas reserves rather than oil after crude lost half its value last year. The number of gas development rigs in Canada’s biggest energy producing province almost doubled in December to 157, the most for that month since at least 2010
Alberta energy drillers pivot to natural gas as oil plunges
Bear Head LNG Corp. and Bear Head LNG (USA), LLC, both wholly owned subsidiaries of Liquefied Natural Gas Limited (LNGL), have filed an application with the U.S. Department of Energy (DOE) requesting authorization to export up to 440 Bcf per year of U.S. natural gas to Canada, and up to 8 mtpa of LNG from Canada to Free Trade Agreement (FTA) and Non-FTA nations.
Bear Head LNG files application with DOE to export gas to Canada