Energy expert Robert Rapier reports from the Alberta oil sands that costs of bitumen production for some producers have dropped as low as $25 a barrel!
Image: Robert Rapier
The image above shows production costs for Cenovus mines, which go as low as $35 per barrel. But other producers are achieving even more economical production. This means that at current oil costs, a wide range of methods for getting the bitumen to market is economically feasible.
Green anti-energy activists may believe that they are hurting Canadian oilsands production by putting all their efforts into stopping the Keystone XL pipeline project. This is a delusion that is aided by the furious debate over Keystone in the skankstream, and by the hilarious posturing over the issue by Obama and his flacks. But it is all irrelevant in terms of actual market impact.
Due to evolving technologies in the US, shale oil & gas will likewise be economically productive — well past the year 2040. China and other nations — including Russia — are also slowly ramping up their shale production infrastructure.
The big losers in energy are the green intermittent unreliables, big wind and big solar. China’s overbuilt green energy sector is close to collapse. European nations — including Spain and Germany — are desperately scrapping for ways to backstep out of their green energy overcommitments. Big wind and big solar are not only ruinously expensive — when government supports and mandates are factored — they are also dangerous to a nation’s electric power grid.
Only corruption in high places keeps big wind and big solar alive, to ravage the economies that are foolish enough to try to incorporate them at high penetration rates.
As always, advanced new generation nuclear energy is the best approach to powering a cleaner, more prosperous human future. But at least humans have vast supplies of hydrocarbons that will bridge the decades between now and the eventual development and adaptation of these advanced nuclear heat and power sources.
More: Here is the rest of Robert Rapier’s recent on the scene report on the Canadian oil sands: