Speaking of Tamarack......
From a newsletter.....
Earlier this week, Western Canada Select crude crashed to $56.59 a barrel, down 31% from last November's $82.26 price tag and about 26% below the year-to-date average price of a little more than $76. Western Canada Select is a blend of heavy oil-sands crude and conventional crude oil. It's lower quality than West Texas Intermediate (WTI) crude, whose price is the benchmark for U.S. oil. So Western Canada Select typically sells at a discount to WTI.
The problem is that 99% of Canadian oil-sands petroleum is sold in the U.S… where we have more crude oil than we know what to do with these days. So all oil prices are falling, and oil-sands prices are nearing the point where it's literally not worth extracting the stuff.
A report by market research firm Wood Mackenzie said some new oil-sands projects would need $90-$100 per barrel oil prices to make economic sense. Others would need at least $65 per barrel to work. Those projects won't see the light of day any time soon.
Worse… many current oil-sands projects require $45-a-barrel oil to make a profit… With prices now at $56 a barrel, how long will it be until most of the Canadian oil-sands industry is operating at a loss?
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Can IVAN even find a partner????
