Related Articles
Report
Forward article link
Share PDF with colleagues

Canada's home-ice advantage

Vast reserves are the oil sands' main advantage. Local producers think they can drive costs down where foreign entrants couldn't

Investing in Canada's oil sands has long been a tightrope of enormous returns versus the time value of money. With the world's third-largest oil stash—after Saudi Arabia and Venezuela—the value proposition of some 165bn barrels would seem clear. Yet the size of the prize has long been overshadowed by the combination of huge upfront costs and volatile world oil prices. Billion-dollar overruns on major capital projects are the norm and producers have had to struggle to keep operating costs low enough to be profitable. Major oil companies were willing to overlook those hurdles as long as conventional reserves were declining and they could book hundreds of millions of barrels with virtually no

Also in this section
Latest licensing rounds
18 May 2018
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
An East Med gas renaissance
17 May 2018
After years of inertia, the prospects for the region's gas finally moving towards markets are improving
Colombian oil revival hopes face electoral test
17 May 2018
An upcoming election and auction round will help determine the country's oil fortunes