The Costs Don’t Include Transporting The Oil To Where It Will Either Be Used Or Exported.

Figuring out how much it costs to produce a barrel from the Alberta oil sands is largely a matter of educated guesswork because the companies working the region are pretty close-mouthed about costs. In February of 2016, IHS Markit estimated full-cycle costs of a new mining project required a West Texas Intermediate (WTI) price of $85 to $95 a barrel in order to break even. Full-cycle costs include the capital cost of constructing a facility, operation costs for that facility, maintenance costs and a return on investment of 10%. Full-cycle costs for an in-situ (steam-assisted, gravity drainage) project would require a WTI price of $55 to $65 a barrel to break even, and expansion of an existing in-situ project would require a price of $50 to $55 a barrel. The costs don’t include transporting the oil to where it will either be used or exported. There are currently two Marijuana Stocks pipeline projects that have received Canadian government approval. An expansion of Kinder Morgan Inc.’s (NYSE: KMI) Trans Mountain system to the west coast of British Columbia and the Enbridge Inc. (NYSE: ENB) Line 3 replacement that will move oil sands production east to Superior, Wisconsin. Combined, the total takeaway capacity, including the Keystone XL pipeline, will be on the order of 2.48 million barrels a day.

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