Quote:
Originally Posted by GWN7
Western Canada Heavy Crude is already at $43 a barrel (Tar sands Oil) Yet it has been given that production costs are $51 a barrel. Imperial Oil has increased output and is stuffing it thru the existing pipeline to Oklahoma. What it all means I have no idea.
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Means they are vertically integrated and their net profitability from extraction to pump is at least cash positive.
Profitability is so difficult to measure once you get the cost of the asset, taxation and so forth included.
Whilst oil sands bitumen is in the $50's for cost, their cash profitability is below that....not sure where exactly.
Plus, if they stopped pumping and their was no gas at Imperial stations, what do you think that the population would do? Not to speak of their fixed costs being enormous....
Dennis