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Oilsands an emerging global growth star
2 G4 q% d; {; _; J# a- B; E. CExxonMobil forecast predicts output of four million barrels a day by 2030; U' L0 ]% K+ k
Gordon Jaremko, The Edmonton Journal
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/ l5 Y) U; x6 LEDMONTON - 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. S4 |5 V2 o6 J' ]8 v6 n
6 t# j8 C+ Z+ g7 L9 cOilsands 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.
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: E4 {" K6 _7 |7 { r- ^) sOil jumped to $96.67 a barrel, up $2.69 in New York trading Tuesday on fears of global supply disruptions after storms battered North Sea production platforms and guerrillas attacked a pipeline in Yemen.
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: E, l. J6 I- Z* t$ S! r8 yGasoline prices in Edmonton were 99.9 cents per litre at many stations on Tuesday.
! Y3 f# ^: k e, m9 I0 }' g; F/ CLarry Wong, The Journal7 n/ I" I/ R2 }9 b
. T s8 F V5 i+ jEdmonton refinery postings for Alberta output Tuesday ranged from $60.74 for low-grade heavy crude to $91.11 for premium oilsands synthetic production. The Canadian benchmarks are translations of international prices, adjusted for pipeline tolls and currency exchange rates.1 S8 M% k: \+ Q- E$ k
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ExxonMobil's high oilsands expectations are realistic and reasonable, said Bob Dunbar, an Alberta industry veteran whose Strategy West Inc. specializes in the field.! J+ b+ Q- Q& T/ V! U* ?
) l) W' A" J$ b% x; { M0 ?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.3 Y8 |* O" s; M* N6 P
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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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! ^) E4 w5 g |When 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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