Buffet buys half a billion in oilsand stock as Keystone delay no longer matters

Warren Buffet established a new position of 17,769,457 shares in Suncor (big canadian oilsand company) at a cost of $524,021,000 for an average price of $29.49.

Keystone-XL Pipeline: Delayed So Long It No Longer Matters?, other pipelines and a huge build out of rail infrastructure have resolved takeaway capacity constraints.

The spread in oilsand oil price to Brent oil has dropped to $3.91 per barrel from a peak of $27 per barrel.

Suncor production is up. Suncor should average 641,950 boe/d in Q3 and Q4. That would be up ~141,000 boe/day over Q2 production: an increase of 28%, and an increase of 7.6% over Q1.

The canadian oilsands are projected to nearly triple production by 2030

Petrobank may be able to resolve issues to scale up its THAI oilsand recovery process.

If you liked this article, please give it a quick review on ycombinator or StumbleUpon. Thanks

Subscribe on Google News