Mrcauser’s Weblog

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What do the Chinese know?……..

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The world is awash in recoverable oil. Tar sands can still be processed at a profit.

Especially with nuke power. Something the Chinese would be able to use without asking permission from tree huggers without real jobs.

After they clean up the world’s assets maybe they’ll lend us a couple more bucks, right? Only if we do as we’re told, of course.

Agora Financial’s 5 Minute Forecast

“Love what you guys bring each day,” writes another piling on. “Just one correction to your comment on the oil sands. Big existing oil sands installations are very economical. The cost of production at Suncor and Syncrude, by far the biggest oil sand producers, is $30-35 per barrel and $20-25 per barrel, respectively.

“Only new projects are coming in at the $70-90 per barrel level.”

The 5: Thanks for pointing out the distinction. Still, we wouldn’t be surprised to see the Chinese buy in after the Canadian delegation leaves town this week. In other deals around the world, China has demonstrated a willingness to pay above-market prices to ensure a reliable supply. That usually gets the deal done… that and the many cups of bai-jo you are encouraged to imbibe when doing business here.

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Written by mrcauser

May 23, 2010 at 2:41 pm

Posted in Uncategorized

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