Eye Current

Energy Directions

Crude oil prices have held pretty firmly to over $70 a barrel for well over a year. With this price structure comes opportunity for some businesses and individuals. Marathon Oil made the news this week by investing $5.6 Billion in oil sand exploration and development.

CALGARY/NEW YORK (Reuters) - Fat wallets and limited opportunities elsewhere may continue to push acquisitions in Canada's oil sands region, analysts say, though soaring costs may leave the sector open to only the very biggest companies.

Earlier this week U.S. refiner Marathon Oil Corp. (MRO.N: Quote, Profile, Research) agreed to pay $5.56 billion for Western Oil Sands Ltd. (WTO.TO: Quote, Profile, Research), an eight-year old firm whose only operating asset is a 20 percent stake in the Athabasca Oil Sands Project run by Royal Dutch Shell (RDSa.L: Quote, Profile, Research).

The agreement is the latest in a series of big-ticket deals that have extended the reach of some of the globe's biggest oil and gas players into the muskeg and forests of northern Alberta, where an estimated 174 billion barrels of oil lie trapped in sand, a resource second only to Saudi Arabia's.

Marathon joins the Canada sand oil club with Exxon, Shell oil and Chevron. High oil prices are only part of the story. Instability of the Middle East and fears of Venezuela and other nations nationalizing their resources, are causing developers concerns. The higher prices of oil sands and shale oils. BP is staying out of the feeding frenzy, instead they are choosing to invest in alternative energy. Industries know that stability in our future necessitates moving our dependence from unstable suppliers. Because of a changing market we at Process Control Outlet are making solar energy becomes a part of our future. Adapting is what allows growth and leadership in an ever evolving world.

Labels: Industry

posted by Ray L. @ 10:50 AM