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Oilsands an emerging global growth star
& ^7 s. z) U8 Q' t. SExxonMobil forecast predicts output of four million barrels a day by 20309 |9 G. l0 {* U6 v5 w9 H
Gordon Jaremko, The Edmonton Journal
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, c, o+ e% w0 Y2 \9 l& q9 @EDMONTON - As oil leaps towards a new landmark high of $100 US a barrel, the world's top investor-owned producer has singled out Alberta as an emerging global star of production growth.
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Oilsands output will multiply fourfold to more than four million barrels daily by 2030, ExxonMobil Corp. predicts in a new international industry outlook report. And that forecast errs on the conservative side by projecting "fundamentals" of demand and supply trends instead of relying on prices to stay sky-high, ExxonMobil spokesman Allan Jeffers said Tuesday.9 c- a* Y! H# z }/ f7 i
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Oil jumped to $96.67 a barrel, up $2.69 in New York trading Tuesday on fears of global supply disruptions after storms battered North Sea production platforms and guerrillas attacked a pipeline in Yemen.
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. ^$ E6 c4 {0 M n3 j8 P. y3 n3 wGasoline prices in Edmonton were 99.9 cents per litre at many stations on Tuesday./ ^3 G9 M1 }& z2 J7 Z9 t/ a
Larry Wong, The Journal' q1 j! B# Y# F" ^0 I$ {
3 A$ t2 W* }, B4 ^( r; `Edmonton refinery postings for Alberta output Tuesday ranged from $60.74 for low-grade heavy crude to $91.11 for premium oilsands synthetic production. The Canadian benchmarks are translations of international prices, adjusted for pipeline tolls and currency exchange rates.
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6 j. P9 X; e3 |ExxonMobil's high oilsands expectations are realistic and reasonable, said Bob Dunbar, an Alberta industry veteran whose Strategy West Inc. specializes in the field.
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Output from the northern bitumen belt would grow to six million barrels a day if all known projects were built on their announced schedules, Dunbar said.
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While no one believes the current spike will last, the looming new record high is seen as confirming that a new era of premium prices has arrived to stay, he said.
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) Y0 k( T8 C4 R+ tWhen the oilsands rush began in the late 1990s developers only relied on markets to stay in a range of $20 to $30 a barrel. To be profitable, new projects today count on sustained averages in a higher band of $60 to $70, Dunbar estimated. |
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