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Shell Earnings on Alberta Oil Sands Outstrip Projects Elsewh

Bloomberg.com -- By Eduard Gismatullin

Royal Dutch Shell Plc, which plans to produce oil from Canada’s tar sands for 40 years, earned 67 percent more from operations in Alberta than from projects elsewhere between 2005 and 2009.

The company earned $20 a barrel from oil-sand mining on average, more than the $12 a barrel it gained from extraction projects excluding tar sands, The Hague-based Shell said a report posted this week on its Web site. Oil sands contributed $3.1 billion to Shell’s earnings in the period.

Excerpt

Shell, with partners Chevron Corp. and Marathon Oil Corp., is mining oil sands in the Canadian province of Alberta. The Athabasca Oil Sand Project plans to expand production capacity by about 65 percent to about 255,000 barrels a day this year or next year,


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Submitted Mar 20, 2010 By: UncleCurt
Category: Daily News Article Discussions > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: Shell Earnings on Alberta Oil Sands Outstrip Projects Elsewh Post a Reply Back to Topics
REPLIES (newest first)
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troy_k
Rookie Author Toronto

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Message Posted: Mar 22, 2010 12:45:16 PM

"We import the most oil from Canada. However these projects may be ruining the environment more than the burning of coal. Conservation keeps your money in your pocket."The oil sands account for 5% of Canada's total emissions. To put it another way; they represent 0.1% of total global emissions. You could shut down all oil sands production tomorrow and China would replace those emissions with new coal fired power generation inside 1 month.

Also, when you hear someone say that there development is destroying the enviroment in northern Alberta remember this. They have the same land mass footprint as the John F. Kennedy Space Center in Florida. You could fit more then a few Florida's inside northern Alberta and most of that land is pristine wilderness.
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Blue48
Champion Author Illinois

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Message Posted: Mar 21, 2010 1:18:13 PM

WE LOVE YOU..YOU CRAZY CANDIANS!!
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1006
Veteran Author Birmingham

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Message Posted: Mar 21, 2010 6:13:00 AM

thanks Uncle curt
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knot2swift
Veteran Author Calgary

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Message Posted: Mar 20, 2010 6:34:24 PM

Tar Sands only need a price of about $50 a barrel.

Many projects got put on hold last spring thanks to oil less than that. I think another whole year of sustained $70+ a barrel will put about $100 billion worth of projects put off back on line.
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VWC
Veteran Author Maryland

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Message Posted: Mar 20, 2010 6:31:39 PM

What we should look at is not their net profit but their profit margin. The make big bucks because they sell a lot of their product.
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ndhoanggia
All-Star Author New York

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Message Posted: Mar 20, 2010 6:24:58 PM

@DEG, yeah, how?
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divebomber
Champion Author Nebraska

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Message Posted: Mar 20, 2010 6:24:51 PM

The more they make the more $$$$$$$$$ we pay.
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DrLyon
Champion Author Michigan

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Message Posted: Mar 20, 2010 6:19:38 PM

Marathon is not competing here in Michigan. Speedway is there subsidiary company here and locally they are not the best price. Usually Mobil is. Further in the are there have been several Marathon stations close...
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johnrb
Champion Author Michigan

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Message Posted: Mar 20, 2010 6:14:34 PM

So they make more because they are not shipping it so far and it's subsidized by the Canadians. Pity we don't see the benefit of cheaper prices!
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DEG
Champion Author Las Vegas

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Message Posted: Mar 20, 2010 6:07:47 PM

And how is this being translated to prices at the pump?
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TheSnowstorm
Champion Author Montreal

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Message Posted: Mar 20, 2010 6:05:49 PM

There must be a premium on the barrel from the tar sands.
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oldosc8
All-Star Author Baltimore

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Message Posted: Mar 20, 2010 5:55:18 PM

keep on drilling...
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Jarod13
Champion Author Virginia

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Message Posted: Mar 20, 2010 5:54:15 PM

It just goes to show how overpriced a barrel of oil is.
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DrCashFlow
Champion Author Massachusetts

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Message Posted: Mar 20, 2010 5:53:19 PM

impressive, as oil sands are not cheap extraction territory per barrel.
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djtdi
Champion Author San Jose

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Message Posted: Mar 20, 2010 5:47:13 PM

Good for Shell and its cohorts. It takes money to make money as the article shows, profit seems to be 100% of cost.
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HawaiianGuy
Champion Author Idaho

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Message Posted: Mar 20, 2010 5:43:08 PM

Not if the EnviroNazis have their way.
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Zeke33
Champion Author New Hampshire

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Message Posted: Mar 20, 2010 5:41:49 PM

It jsut goes to show how overpriced a barrel of oil is.
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tc316
Champion Author Twin Cities

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Message Posted: Mar 20, 2010 5:36:08 PM

Good for Shell
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threewheeler
Champion Author Seattle

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Message Posted: Mar 20, 2010 5:27:47 PM

as long as this keeps oil prices down and jobs in NA
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30mpg80
Champion Author Lexington

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Message Posted: Mar 20, 2010 5:25:45 PM

This proves plenty of money to be made from oilsand deposits.
Drill more, now, more prodution from Canada and USA.
Send less money to OPEC.
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Wolfwings
Champion Author Delaware

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Message Posted: Mar 20, 2010 5:24:21 PM

What changes will I see at the pump?
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Helms
Champion Author Fort Worth

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Message Posted: Mar 20, 2010 5:23:53 PM

good day for canada (and shell) eh?
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mvosevich
Champion Author St. Louis

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Message Posted: Mar 20, 2010 5:22:45 PM

To bad for OPEC.
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letmathe
Champion Author Chicago

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Message Posted: Mar 20, 2010 5:22:32 PM

OHMS ... fun comment, except that consumers get to pay or walk!

Now that's having some flesh in the game!!
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LPman
Veteran Author Arkansas

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Message Posted: Mar 20, 2010 5:21:43 PM

Big oil making big $$$$
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sjl08203
Champion Author New Jersey

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Message Posted: Mar 20, 2010 5:21:11 PM

If it is not from the mid-east,t is good
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OHMS
Champion Author Orange County

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Message Posted: Mar 20, 2010 5:19:37 PM

This is one shell game where the consumer doesn't have much chance of getting a stake
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eddmac
Champion Author Washington

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Message Posted: Mar 20, 2010 5:08:26 PM

As resources shrink more of this will happen
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imadriver
Sophomore Author Twin Cities

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Message Posted: Mar 20, 2010 5:06:34 PM

It is better to have a North American neighbor doing well with its oil-sand mining than to have an OPEC nation experience ever-increasing profits from what lies beneath its sand.
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nojsts
Champion Author St. Louis

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Message Posted: Mar 20, 2010 5:06:23 PM

Will this make gas cheaper?
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emptytank08
All-Star Author Pennsylvania

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Message Posted: Mar 20, 2010 5:03:34 PM

How much is this going to cost us
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Ken2OD
Champion Author Grand Rapids

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Message Posted: Mar 20, 2010 5:03:20 PM

Ask and ye shall receive. I commented just yesterday about more getting information regarding oil sands, and here it is today.
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esquared
Champion Author Oklahoma City

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Message Posted: Mar 20, 2010 5:00:54 PM

MiniFan, not unless we cut consumption simultaneously.
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MiniFan
Champion Author California

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Message Posted: Mar 20, 2010 4:55:20 PM

is this going to lower our prices?
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opecsucks76
Champion Author Milwaukee

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Message Posted: Mar 20, 2010 4:53:02 PM

It is a labor intensive effort to get the oil out of the sand
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arinkrat17
Champion Author Twin Cities

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Message Posted: Mar 20, 2010 4:44:51 PM

oil always makes a profit
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mickealo
Champion Author Spokane

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Message Posted: Mar 20, 2010 4:41:16 PM

oil will always be profitable for oil company because they just raise price when ever they want
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MDTDriver
Champion Author California

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Message Posted: Mar 20, 2010 4:33:50 PM

oil profit no matter what they do
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4warned
Champion Author Michigan

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Message Posted: Mar 20, 2010 4:29:28 PM

Oil still making good profits no matter where they mine.
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kingpin6
Champion Author Arkansas

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Message Posted: Mar 20, 2010 4:23:59 PM

Somebody had to take a chance on the oil sands. Might play out better than I thought it would.
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Retowered
Champion Author Colorado

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Message Posted: Mar 20, 2010 4:19:00 PM

Good for Shell, hope it works out.
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NavyStore
Champion Author Seattle

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Message Posted: Mar 20, 2010 4:17:53 PM

Yeah! or Boo!... Tar Sands are an ecological mess and I don't care if an oil company makes money, because in the end they are just another form of drug pusher.
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ricker8
Champion Author Ontario

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Message Posted: Mar 20, 2010 4:13:45 PM

great, more jobs

[Edited by: ricker8 at 3/20/2010 5:13:59 PM EST]
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sivart
Champion Author Arkansas

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Message Posted: Mar 20, 2010 4:11:06 PM

I hope they are doing it environmentally clean!
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skynet
Champion Author California

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Message Posted: Mar 20, 2010 4:08:54 PM

That's pretty awesome for Shell and Canada.
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niceguytx
Champion Author Houston

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Message Posted: Mar 20, 2010 4:08:32 PM

I wonder how true that is and whether it can last.
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BurntOrange
Champion Author Austin

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Message Posted: Mar 20, 2010 4:07:23 PM

Interesting.

I wonder how their cost per barrel compares to their original plan.
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aarrrt
Champion Author San Diego

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Message Posted: Mar 20, 2010 4:05:44 PM

I thought the process was too expensive, guess they did ok.
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us4usa
Champion Author Missouri

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Message Posted: Mar 20, 2010 3:54:57 PM

hopefully we will not need that much oil in 40 years
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RoadhogMA
Champion Author Boston

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Message Posted: Mar 20, 2010 3:51:45 PM

Good for Shell.
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