Will Demand Remain High for the Canadian Oil Sands Into the Future?
The Canadian oil sands are one of the largest amounts of oil ever found. The bitumen found there is such a large amount that if all of it was in use and only kept in Canada itself, it would be enough fuel to provide the country with benefits for well into the future. Some experts believe there is enough bitumen stored there that if it was in use in such a way, it could last the country 500 years. That is a staggering amount of fuel by any means. However, does that mean that there could be too much in the works?
The Canadian oil sands are increasing their production levels of crude oil, namely the oil sands bitumen product. While there are millions of barrels of oil being removed every day, there is an increasing concern that there could be too much being pulled from the reserve, which cause a large supply to be available which in turn could would cause pricing to plummet. To the investor, this is a very worrisome situation, but it does not have to be.
Where is the Concern?
Some very large and demanding markets would happily cut into the share of the barrels of oil removed from these oil sands. In addition, while technology continues to increase, there could be a drop in the demand for oil, especially as cleaner technologies become more readily available to the public (and the public becomes more readily acceptable to them.) Corn and other fuel methods will become a larger threat to the oil industry in the future, but this does not mean that the oil spigot should be turned off. In fact, that could be the worst mistake made.
The fact is, at the current rate of supply, the world will run out sooner than later in terms of crude oil. Saudi Arabia’s amount of oil is far less (it is believed by some) than what the country’s leaders are willing to tell. Additionally, there are markets that are expanding even farther and faster that are becoming even more in need.
The Canadian oil sands producers are working hard on keeping the right amount of oil coming from the reserve. They have developed new working markets for the oil, too. Some of the regions they are now opening into include the Midwest and the Gulf coast regions of the United States and into Asia as well. Developing countries like China and India have an increasing demand for oil that is being increasingly difficult to meet by other producers.
Investors concerned with the amount of production and the increases set to happen into the future can learn more about the amount of oil produced through the Canadian Association of Petroleum Producer’s reports, which are provided regularly to keep the public, and investors, informed.
Canadian Oil Sands Versus Colorado’s Oil Shale
The Canadian oil sands are one of the richest deposits of oil product in the world, if not the largest. While Saudi Arabia is a listed as having the largest amount of crude oil, it is a belief that their resources may be more limited than they are willing to share. Canada, just north of the border, looks to be one of the best ways for the United States to break its dependency on Middle East oil. Yet, the question is, what about Colorado’s reserves?
Colorado has a rich deposit of oil shale, a product much different from that found under Alberta’s land. Some may not know about the oil shale found in Colorado, but it is one of the best locations in the world for rich oil deposits. You may be asking then, “Why is the US so determined to buy foreign oil when there is such a large deposit located in Colorado?” The reason is simple. Oil shale is not the best product for oil production, because of the difficulty in production and refining to the level that is required.
By comparison, oil shale production in the world is limited to just 30,000 barrels each day. The oil sands located in Alberta, Canada, on the other hand, produce enough oil to provide Canadians with 40 percent of the total crude oil production they need. In the next 10 years, it is an estimate that Canadian oil sands will produce 4 billion barrels of oil a year, much larger than the amount the Colorado oil shale will produce.
That does not mean you should not invest in the Colorado oil shale development. Most investors believe the technology to get the Colorado oil shale development up to a more usable level is still years away. Yet, the companies that you can buy into to get a piece of this investment are forming and they are looking for those ground floor investors that stand to make the largest investment of all.
You can learn much more about the Colorado oil shale. It is located in Green River formation in the heart of Colorado. Additionally, there are similar deposits of oil shale located in rural Utah and Wyoming, both of which are additional sources of investment potential. It is an estimate that there are two trillion barrels of oil found in Colorado, Wyoming and Utah combined, all in the form of oil shale. Still, investors are turning their investment dollar to the Canadian oil sands where potential is currently in play. Oil production is an ideal investment tool in either Colorado or in Canada. The goal you have is to determine what type of investment you want to get behind.