1 Billion Boost to Oil Sands and Exxon Imperial Oil's approval of its $7.
1 billion Kearl Lake project snapped the Canadian oil sands industry out of an investment rut that has plagued it for months and has renewed discount kate spade shoes hopes that the tide of job cuts, project delays and cancellations kate spade bags outlet online has turned for good. It's also putting money much to the chagrin of some Canadians into Exxon's pockets. It's hard to predict whether Imperial's decision marks the beginning of an oil sands revival. This is what I can predict with some confidence: new jobs and additional money will provide a boost to an economy increasingly reliant on the oil sands business. The question is how long term that boost will be? Imperial Oil is controlled by Exxon, which holds 70 percent ownership of the Canadian energy company. Imperial, and Exxon as a result, has already benefited to the tune of C$1 billion because it waited to approve the Kearl Lake project. But the real boon for Exxon won't come for a few more years. Once all phases have been completed, the Kearl Lake project will mine kate spade ladies bags up kate spade factory store to 300,000 barrels a day of bitumen, a sticky, low grade crude oil. The first phase is expected to produce 110,000 barrels, although Imperial Vice President Randy Broiles said expanded capacity could to 140,000 barrels a day. The bitumen will be mined, combined with a diluent courtesy of Inter Pipeline Fund, and will be sent elsewhere to be refined or upgraded into high quality crude oil. The blend will initially be sent to Imperial's two Ontario refineries and some to the Strathcona refinery in Edmonton. After 2012, the blend will be sent via pipeline to Exxon refineries in the Gulf Coast and Midwest. Most workers will be hired for the construction phase of the project. Many folks, including the Alberta Federation of Labour, are concerned the good jobs and money will go south of its border into the United States once construction is finished. Building an upgrader is an expensive endeavor in Canada and is more than double the cost of building one near the Gulf of Mexico, according to the FP.
That leaves Exxon in a darn good spot. The company's refining capabilities pads its bottom line and its subsidiary avoids the cost of building an upgrader. The only crimp in Exxon's new moneymaking machine might be pending cap and trade legislation, which could negatively impact oil sands development.