High Costs in Tar Sands Slightly Slowing Production Advances

Syndicated from Oil Sands Truth on Sat, 2008-09-06
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High costs squeeze oil sands
Break-even price jumps 31%
Claudia Cattaneo, Financial Post // September 05, 2008

CALGARY -- As oil backpedalled again yesterday to a five-month low, oil sands projects are getting increasingly squeezed as soaring costs boost the break-even price.

A new report found the break-even oil price required by new mining projects in the oil sands has jumped to $85 a barrel, an increase of $20 or 31% in barely more than a year.

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