Posted by Ron Daems, President
Even though the Bakken and Eagle Ford shale oil plays receive all the glamour, it turns out Alberta's bitumen producers still offer better investor value, according to a new study.
In a recent paper from Scotiabank which looked at more than 50 petroleum plays across the continent, oil sands cost less to produce on average than the Bakken in North Dakota and the Eagle Ford in Texas.
According to the study, oil from in-situ oil sands projects in Alberta is produced at a cost of US$63.50 on average. The study goes on to point out that some of Alberta's heavy oil plays yield some of the best profit investment ratios across North America.
Image source: Financial Post
In contrast, oil produced from the Bakken in North Dakota comes in at US$69 and the Eagle Ford at US$63.57. When you combine all that with the fact the shale oil plays typically involve high-risk costly wells and rapid decline rates, it's hard to see why investors continue to favor them over Alberta bitumen.
Strata Oil is one of the leading developers of bitumen in the Carbonate Triangle, and has a recoverable resource of 887 million barrels of crude, and a total resource of 3.4 billion barrels. Strata's plan is to produce from it with a proven technology known as cyclic steam. If you're a high-net worth investor, and you haven't already done so, we encourage you to view: http://www.strataoil.com/include_me.php