oil-sands-stock

Oil Sands Stocks

An Oil Sands Stocks Review

Pros and Cons of Oil Sand Exploration and Stocks

Oil Sands Stocks have been controversial to say the least.

There is no denying that the major oil producers have done their damage in the name of humanity.

Damn it…. I don’t believe this game is over.

Oil Sands are found in huge amounts in several different countries in the world, but their amounts are greatest in Canada and Venezuela.

Oil Sands are a natural mix of sand, water, clay and an extremely thick, or put another way, internal friction creation, with the last component – petroleum.  This petroleum has a viscous form (The less viscous the fluid is, the greater its fluidity), therefore it is the dense, thick mixture of raw components in petroleum we are talking about for this oil sand stocks review.  This combination of natural ingredients, combined with petroleum forms a thick substance, also called ‘tar,’ for it’s resemblance to the thick, dark substance of that same mixture, called Bitumen.

Oil Sands Stocks: Where It Began

Historically speaking, Bitumen use was traced back over 40,000 years ago to Neanderthals who found a use for it attaching their stone tools.  Later it served as a way to construct buildings and to waterproof reed boats.

Naturally occurring bitumen is a chemical closer related to asphalt than tar.  The term “oil sands” (also known as, “oilsands”) is more often used in the producing areas than the term, “tar sands”.  That is because it is synthetic oil is what is manufactured from the bitumen.

 Oil Sands Stocks:  Production

Because extra-heavy oil and bitumen flow so slowly, if at all, toward producing wells under normal reservoir conditions, the sands are removed and mined with strip mining or the oil made to flow into wells by in situ techniques. Situ techniques reduce viscosity by injecting steam, solvents, and/or hot air into the sands.

These processes typically use more water and require larger amounts of energy than conventional oil extracting methods, although many conventional oil fields require big proportions of water and energy to get better rates of production.

Because of its consistency, it is hard to transport to the markets that convert it into gas, diesel, and numerous other products.

Oil Sands Stocks: Conflict

Canada currently provides over 20% of the refined products and crude oil to the United States.  Canada exports more oil and products than it uses itself.

The three primary oil fields are in northern Alberta, Canada.  Alberta oil sand deposits contain at least 85% of the world’s natural bitumen reserves.  This figure represents 40 percent of the combined crude bitumen and extra-heavy crude oil reserves in the world.  These reserves are said to be the only bitumen deposits concentrated enough to be economically recoverable for conversion to synthetic crude oil at current prices.

These Canadian reserves of the  largest bitumen deposits, containing about 80% of the Alberta total, are the only ones recognized as suitable for surface mining.

oil sands stocks

Several companies had plans for 100 + oil sands projects that signaled billions in investment and projected profit.  Rising labor and materials shortages increased production costs significantly.

Oil sands Stock Incentives issued by Canadian governments made these oil sands development  propositions more lucrative for investors, however, the environment paid the price and pressure to regulate and even stop harmful environmental extraction processes and production quickly followed.

Oil Sands Stocks: What Price Progress?

“Try this quote out for size and then check it against your everyday activities as you drive to work, school, parties, your friends home, visit relatives, go on vacations and so on.

“If it weren’t for oil they wouldn’t be riding those bikes, they’d be walking, barefoot, naked with no glasses! Not to mention the streets would be dirt, not paved. There would be no electric lights, no drinks at the end of the ride, no music.

. . . Should I go on?”

 

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