Oil from oil sand is selling at a discount now because they are land locked.
Keystone will lower their delivery cost and these oil can fetch a higher price.
I am not sure about the enviromental impact...
Oil sand producer in Canada will earn more
With Keystone US has to pay more to buy oil sand oil.
If you are Obama, why would you approve something that will make American pays
more for the oil from Alberta?
US oil production has went up 70% ? since 2008? One more strike for Keystone..
What may happen eventually is a Keystone pipe line that must use US produced steel and
Oil through Keystine can not be exported to another country. With these two restrictions, Keystone
is not going to do much for Canadian producers in the long run.
Just my 2cents worth...
Hard to time the market. I was under the water from Jan 2011 to Aug 2014. I had paper loss of over half a million on SU. Until I think oil has bottomed, I would stay away. This stock has swing close to 15 percent within a few days. I am not sure if it was an over react to TLM being sold. SU can not be sold. The Can govt will block it. Will see the stock slipping back.
This is not the market for individuals. I am 100% cash since August
I had been wrong since Aug 2014 when I said farewell to $40. I had been wrong time and again.
I may have to say goodbye to $30 for a while. $25 is not impossible.
Oil price has been artificailly pushed up by OPEC. The real oil price can be $10 to $40. Shale oil cost more to produce. The lower price will wipe them out. There will be more consolidation in shale oil..
Warren too has to bite the bullet a few times. He obviously did not predict the oil market crash.......
Warren may have sold all his SU shares. His holdings has boosted at least $5.00. Su will drop another $3 to 5 if he drops or when people found out that he has cut his holding on SU.
I want fishery jobs in NFL, forestry jobs in BC, oil jobs in AB, Industrial jobs in On and PQ, farming job in wherever we can, I want mining jobs too... but they have to compete and win them.
Oil has been artificially kept high by OPEC and the world has suffered enough. So what if oil is a vital industry in Canada. The market -whether they are manipulated or not - will decide who can survive.
Oil is more vital to Saudis than to Canada. Saudis wants to see $200 oil too. 10 of the 12 OPEC member have trouble with oil at the current level. Don't you think they want a higher price too? Many members need at $100.
How many barrels per day should OPEC cut from the current 30 million barrels per day to push price back to $100? 2 million? 5 million? And how long will it take for Canadian oil sands and USA Shale oil to catch up fill that void.
No one can see how this will end. It may be a month or a year...
Canada and most countries import oil and/or petroleum from Saudi Arabia
Saudi Arabia has the largest amount of oil in the world
Canadian are benefiting from the lower oil price.
OPEC is an Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers
OPEC made the OIL SAND viable by keep oil price high.
Without OPEC, oil may be in the $40 or lower range. At that price, ll stop.
If oil price stay below $70 for an extended period, certain oil sand operations will halt.
Many existing USA shale oil production will face serious problem but more new lower cost shale oil project are coming. The battle will be between oil sand and shale oil. The one with a lower cost will survive.
OPEC has no control over its members. Instead of 30 million barrels a day, cheating will push it to over that and further depress the price.
Hard to believe US govt and Saudis can reach such an agreement.
The price war will continue until the new increase demand can absorp all the new supplies or OPEC can unify again and cut enough production to push price up again.
The slowing Chinese economy (7% growth is predicted instead of 7.3%) , problem in Euro zone and Japan are not helping.
Oil may have a 6 month volitility. I don't see how Suncor or many oil companies can maintain its cash flow as predicted a few months ago. They must come out to change their capital spending projection, halt current projects,lower income , cut dividends and cut staff. Any of such movement is a signal to cash flow issue.
I have sold all my SU shares in June. Not at the highest price but a lot higher than yesterday's 52week low.
I don't see how SU can go back to $40 within the next 52 weeks.