Monday, January 27, 2014

Oil companies struggle to make a buck since peak of cheap oil in 2005

Why turning a buck isn't easy anymore for oil's biggest players - The Globe and Mail: "The reason for such stagnant market performance comes down to the cost of both discovering new oil reserves and getting it out of the ground. According to the International Energy Agency’s 2013 World Energy Outlook, global exploration spending has increased by 180 per cent since 2000, while global oil supplies have risen by only 14 per cent. That’s a pretty low batting average.

Shell’s quest for new reserves has seen it pump billions into money-devouring plays such as its Athabasca Oil Sands Project in northern Alberta and the Kashagan oilfield, a deeply troubled project in Kazakhstan. It has even tried deep water drilling in the high Arctic. That attempt ended when the stormy waters of the Chukchi Sea crippled its Kulluk drilling platform, forcing the company to pull up stakes."

'via Blog this'

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