What I find really interesting is that even with Oil and Nat Gas prices as high as they are, the oil stocks are just starting to move. Once they get going they will roar ahead as the ETFs, and large institutional buyers are forced to buy in to maintain their weightings as well as to earn adequate returns. Like I said before., all the ESG talk will go out the window once the prices start ramping.
Inflation continues at a 5% a month pace, and that is artificially low reporting by design. With energy prices climbing, supply chain issues, shortages of workers in almost all areas, inflation is only going to get worse. The Bank of Canada is going to get forced into raising interest rates, whether they want to admit it or not.
Rob Roach, ATB Economics | October 18, 2021
Oil production in Alberta higher than ever
Oil production in Alberta over the first 8 months of 2021 totalled 865 million barrels for an average of 3.6 million barrels per day. This is the highest rate of production on record.
The oil sands accounted for 86% of total production over this period.
Year-to-date production in 2021 was 9% higher than in 2020 and 2% above 2019. Production was down last year due to the oil price crash and reduced global demand brought on by the early stages of the pandemic.
Previous and ongoing capital investment has enabled the increase in production—an increase spurred by rebounding global demand and robust prices.
On October 1, 2021, the completion of the long overdue Line 3 pipeline expansion project added 370,000 barrels per day of new export capacity from Alberta to Wisconsin. This, plus the transportation capacity that will be added when the Trans Mountain pipeline expansion project is completed, will help oil production in Alberta to keep rising over the short-term.
With both production and prices up compared to 2020, the dollar value of international crude oil exports from Alberta was 48% higher over the first 8 months of 2021 than the same period last year ($35 billion compared to $51 billion).
Answer to the previous trivia question: According to hotcars.com, and accounting for inflation, the Crosley Convertible holds the record for cheapest new car sold in the United States. The Crosley Convertible sold for $300 [USD] in 1939, the equivalent of just $5,585 in today's money.
Today’s trivia question: Which country is home to the longest crude oil pipeline in the world?