Oil Sands Investments Look Towards The Future
A look at oil sand production in Canada will floor you. As the United States is stressing about the $125 plus per barrel price of oil coming out of Saudi Arabia, and the country’s leaders letting everyone know that they are not likely to increase production or to provide more leverage, there is no doubt that there is a real concern about oil in the United States. Nevertheless, Canada, a country with a large consumer based economy like the United States, with just as large of a dependency on oil, is not worried. That is because; the future of Canada’s oil sands looks promising from any vantage point.
One of the most astonishing bits of information for investors considering investments into the Canadian oil sands is this. While the world is seeing a slow down or a steady amount of production of oil, especially in locations like the Middle East, Canada has the potential and likelihood of seeing a significant expansion of oil production. Canada’s oil sands are the only current area in the world where production is going to increase over the next years.
According to Canada’s National Energy Board, production will continue to move forward in significant ways. They did lower their estimates somewhat, but they still will likely see 3 million barrels of oil in play by 2015 as well as another 5 million barrels, or so, per day by 2020. That is a significant amount of oil and the raise will keep producing companies’ ideal investments for the next years to come. Currently, the Canadian oil sands are producing about one million barrels of oil per day.
There are locations in the world that will provide beneficial to the future of oil production in the world. In fact, in Colorado there is a large area that would be an ideal investment opportunity for the future with the Colorado oil shale formation located there. Yet, those investments are years off. The technology and the ease of investment are not readily available in this area just yet. Still, there are other opportunities including a large formation of oil in the Saskatchewan region.
In addition to the production ground of the Canadian oil sands and the later development of oil shale, there is a future for oil in the world. You can see this in the vast number of technologies developed each year to make oil production faster and safer. Mining methods are becoming more readily available; in addition, so new companies do have opportunities (just look at the Saskatchewan region’s recent booming area.) Investors who want to be in the business of oil investing will find Canadian oil sands one of the best routes to take for today and in the years to come.
Is Now the Time to Invest in Canadian Oil Sands?
Some have said that investing in the Canadian oil sands now is similar to being able to invest in the oil from Saudi Arabia back in the 1940’s. While no one knew a lot about that oil reserve back then, or just how profitable it would become, the same can be said about the oil sands located in Alberta Canada. Under the earth’s surface here, you will find a wealth of valuable investments to be made. The fact is, there are millions of barrels of crude oil trapped under the ground, much of which can be used to feed the ever-expanding demand for oil that continues to drive inflation throughout the world.
The question is, though, is now the right time to get into the Canadian oil sands investment business? Since most people cannot buy into the companies directly or purchase and get them started on their own, you can invest in the trading of the producing companies, some of which are the best investments you will find. Canadian Oil Sands or COSWF, is one of the best routes to take for a number of reasons.
One reason for this is due in part to the fact that the operations are underway and the increasing oil costs are helping to make the oil sands much more profitable than they were just a few years ago. When the companies first got started, the costs of developing not only the plants for extraction, and the means of extraction (which is highly costly in and of itself) but the building of refineries which would need to convert the bitumen product extracted from the earth into conventional crude oil and then finally into usable product, the costs were high. In 2003, the COSWF did not make a profit. In 2007, it was able to secure a profit of US $1.3 billion in operating income.
What’s more, the development of the Canadian oil sands region continues to increase, just as demand does. It is projected that the oil sands projects will raise to 3 to 4 million barrels per year removed. This will feed into the world, which is craving oil. Huge consumer markets are just getting started. While demand in the United States is as strong as ever, markets like China and India are just taking off, and their demand for oil has grown to a proportion that has not allowed Saudi Arabia to keep up.
The bottom line here is that now is the ideal time to get into the process of investing the Canadian oil sands. As of Friday, May 10th, Canadian Oil Sands added 41 cents, up to US $49.67. Most investors see this as an ideal tool for investments well into the future.