Here is few charts to show the differences in the cost of getting crude oil (or gas) from the ground and selling it. This first one shows the major companies - Exxon, Mobil, BP and Shell. The second chart shows the 6 oil biggies; it shows how much their cost to produce their (oil, nat. gas) product and then it shows the contracted price (realized price) they sold their stuff for. Therefore it is important to subtract the Total Cost from the Realized Price to see how much profit they made. All data is from 2013. This third chart is very important to some. People are getting advertisements that for measly $120/year a specialist will provide names of oil producers who will take jump up and will make the fortune. In this chart are four companies called Independents I recommend to look at this very closely, and do the calculation shown in the above paragraph. You will find out the only one of them had decent profits - Pioneer. Why? because looking at the second entry from the bottom, there are shown Percentage Liquids Liquids = crude oil, natural gas and bitumen. Bitumen is extra heavy oil; it is quite expensive to make real crude liquid from it. Bitumen is the Oil Sands of Canada. It is expensive and not very profitable. I mean the bottom line. The fourth chart shows the important Canada Oil Sands operators. Look at the bottom line - how much they sell the product for and compare it to the real oil majors in chart #2. The difference is $10 and UP!!! per barrel. Brings in my mind the feasibility of the pipeline from Canada. We would be importing oil that is mere expensive than the stuff we produce here in the USA. This is reason why i (two times before) wrote that a VALUE ADD refining/processing operations done here in the USa would be key to bring more wealth to this nation.
Posted on: Thu, 25 Dec 2014 15:02:12 +0000