Conley
12-03-2011, 11:32 AM
The latest BP review estimated that, in 2010, Canada had more than 175bn barrels of recoverable oil - just behind Venezuela at 211bn and Saudi Arabia's 264bn.
But not all oil comes out the same.
Whilst Saudi oil is relatively light and comes out of the ground relatively easily - at a cost often of less than $10 a barrel - Canadian oil is heavy, sticky and can cost more than $60 a barrel to extract.
Most of Venezuela's oil fits into the same category - though it is extracted differently.
This high cost makes extracting Canadian oil more risky; investment almost ground to halt during the recession as the price of oil fell below the cost of production.
The product produced is called bitumen - often labelled as tar by its opponents.
http://www.bbc.co.uk/news/business-15889665
Good discussion of the differences between the oil in Canada and that in the Middle East. It's a complicated process to extract here in North America.
The Chinese are also buying up stakes in many of the Canadian oil sands companies.
But not all oil comes out the same.
Whilst Saudi oil is relatively light and comes out of the ground relatively easily - at a cost often of less than $10 a barrel - Canadian oil is heavy, sticky and can cost more than $60 a barrel to extract.
Most of Venezuela's oil fits into the same category - though it is extracted differently.
This high cost makes extracting Canadian oil more risky; investment almost ground to halt during the recession as the price of oil fell below the cost of production.
The product produced is called bitumen - often labelled as tar by its opponents.
http://www.bbc.co.uk/news/business-15889665
Good discussion of the differences between the oil in Canada and that in the Middle East. It's a complicated process to extract here in North America.
The Chinese are also buying up stakes in many of the Canadian oil sands companies.