What the breakeven is for tarsand oil companies?

Discussion in 'Commodity Futures' started by dsq, Oct 15, 2008.

  1. dsq


    BTW does anybody know what the breakeven is for tarsand companies-is it 80$ a bbl?I think some of these tarsand companies will be in crisis soon.CDN dollar will tank...
  2. Cesko


    I think I read it's $40.
  3. Depends on your definition of TAR SAND COmpanies

    Companies like Suncor (steal at 19 dollars right now btw) that actually mine and cook the oil out of the dirt are profitable with oil at 55-60 USD.

    Now that the exchange rate has added another 20% discount to that in CAD I'm sure they could handle $50 USD oil easy and still make out like bandits.

    If you look at other technology like SAGD, and CSI, THAI, etc, the cost is lower around 30-40 USD

    Just like there was a level that oil became too expensive and things slowed down, there will be a level where its too cheap and production will slow down.

    I believe Suncors problem is not that they can't mine enough oil, its that they can't upgrade enough into a light sweet product and ship it to refineries.

    It was trading at 74 dollars a few months ago and it was at 18.50 this morning. Thats ridiculous.
  4. It is kind of ridiculous - but really ALL the canadian oil companies have been slammed just as much as the foreign ones - oil period. When the time to get back in is the hard part....if not impossible.

    Are you stepping back in anytime soon?