How much does it cost to produce oil sands?

How much does it cost to produce oil sands?

In 2014, the cost to produce oil sands crude was more than $60 per barrel (expressed in WTI terms), but improvements and efficiencies have brought costs down to $46 to $53 per barrel, according to one estimate, and the mid $40s, by another.

How much does mining/oil cost?

Production costs around $41 a barrel in Canada. In the United States, production costs are $36 a barrel — still below the trading price. Those findings are from Rystad Energy’s UCube database, which has information from roughly 65,000 oil and gas fields around the world.

How much does it cost Syncrude to produce a barrel of oil?

Syncrude cash operating costs of $32.00 – $35.00 (US $24.65 – $26.95) per barrel is based on the assumptions that: (i) Syncrude will produce 170,000 – 185,000 bbls/d of synthetic crude oil (net to Suncor); and (ii) natural gas used at Syncrude (AECO – C Spot ($CAD)) will be priced at an average of $2.50/GJ over 2021.

What does it cost to produce a barrel of oil in Alberta?

According to a 2019 economic review document published by the Government of Alberta, “the breakeven [WTI] price for a new stand‑alone mine is currently within the US$75‑85/ bbl range,” while in-situ production is lower, at around US$55 or US$60 per barrel — still way above WTI oil prices as of late.

How much does it cost Suncor to produce a barrel of oil?

The company also increased its guidance for operating costs per barrel at Fort Hills, to $37 to $42 per barrel from a pervious $25 to $29 per barrel. Suncor shut down one of its production trains at Fort Hills – which is jointly owned by Suncor and minority partners Total E&P and Teck Resources Ltd.

Is tar sands oil profitable?

When tar sands oil is selling at a steep discount because of oversupply, as it does today, extractors are squeezed but refiners make a healthy profit. This has made tar sands advocates out of pretty much the entire North American oil industry.

How much does it cost to produce oil?

The breakeven price for North American shale oil was US$68 a barrel in 2015, making it one of the most expensive to produce. By 2019, the “average Brent breakeven price for tight oil was about US$46 per barrel. The breakeven price of oil from Saudi Arabia and other Middle Eastern countries was US$42, in comparison.

Which costs are oil production?

Answer: In oil industry unit costing is used.

How much oil does Alberta produce?

Reserves and production Alberta’s oil sands’ proven reserves equal about 165.4 billion barrels (bbl). Crude bitumen production (mined and in situ) totaled about 2.8 million barrels per day (bbl/d) in 2017.

How much does it cost to produce a barrel of oil in Canada?

Production costs around $41 a barrel in Canada. In the United States, production costs are $36 a barrel — still below the trading price.

How many barrels a day does Suncor produce?

It started production in 2018 and has an estimated lifespan of 50 years, with peak daily production estimated at 194,000 barrels per day.

How much does it cost to run an oil sands mine?

In their 11th annual review of oil sands supply costs, the Canadian Energy Research Institute (CERI) pegs breakeven costs at $43.31/bbl for SAGD projects (steam-assisted gravity drainage) and $70.08/bbl for a stand-alone mine. The figures exclude blending and transportation costs but include capital expenditures.

How much do Canadian oil sand producers make?

Here, the Canadian oil sand producers tend to earn less money per barrel than the mayors and large independent oil companies. Suncor and COS earn about the same amount (roughly $15/barrel), while Imperial Oil is clearly ahead and can even compete with the independents.

Are oil sands production costs different from conventional oil?

Nevertheless, production costs per barrel of oil from oil sands are above costs for production from conventional sources, although non-income related taxes are relatively low compared to conventional oil. This trend is also shown in the difference between realized price and total costs.

How much of Alberta’s Crude oil production comes from oil sands?

Production from oil sands includes an increasing share of Alberta’s and Canada’s crude oil production. In 2018, non-upgraded bitumen and SCO production made up two-thirds of total Canadian crude production and 87 percent of Alberta’s total production.