I am also a long time investor in SPPTY & CPMNY. I sold at $3� (on the way up.) I want to accept your question answering offer--and the query relates to the production cost of oil from Queensland shale. Ten years ago, SPPTY said that estimated shale oil production costs were $40 to $45 per bbl. They also said that Japanese interests were financially helping SPPTY stay alive as a reserve for Japan in case world oil became scarce and shale oil production turned economically viable as an oil source for petroleum-poor Japan. Question: What has happened since I sold, if anything, to bring oil shale production costs down? What is the current and estimated future production cost of shale oil per bbl? Thanks in advance for your answer.
Alot has happened over the past 15-20 years. The AOSTRA Taciuk retort is very efficient. In full swing, several years out, I betcha the cost can drop to $7-8/bbl.
At first, the twins won't have the economies of scale in Stage 1- which is limited to one retort module producing app 4500/bbl per day. It doesn't matter that much anyway, since they have some significant tax & R&D relief for Stage 1 & then some.
If Stage 1 works OK, they'll go to Stage 2, app 15,000 bbl/day- or maybe they'll skip to Stage 3, a full 65,000 bbl/day. The shale is very rich, lays close to the surface, very little overburden on top, good climate, & very close proximity to a port. The twins should come in better ultimately, in terms of operating cost, than either Suncor or Syncrude, both of which operate under harsher overall conditions in Canada. The twins are talking about a little more than $8/bbl operating cost.