OIL SANDS EXPLORATION DOWN

Whatever the challenges to New Energy, they don’t seem to be as serious as the challenges to Old Energy. Are people finally realizing what it is going to cost to get those oil sands, long described as “another Saudi Arabia” in oil reserves, to produce useable oil?

Alberta Oil, Gas Land Revenues Slump In 2007
Hyun Yung Lee, August 24, 2007 (Dow Jones via RigZone)

WHO
The Treasury of the Canadian province of Alberta, oil exploration companies

This is why they call it oil sands.

WHAT
Revenues for exploration rights in Alberta’s highly touted oil sands regions are down 60% for the year.

WHEN
2006 year-to-date revenues from the sale of exploration rights: C$2.55 billion
2007 year-to-date revenues from the sale of exploration rights: C$969 million
2005: C$2.26 billion in exploration rights revenues
2006: C$3.43 billion in exploration rights revenues
2007 projection: C$1.4 billion.

WHERE
Calculations are for exploration rights in oil, natural gas and oil sands.

The previously hot, now not, Alberta resources. (click to enlarge)

WHY
Explanation of slump: low natural gas prices, rising oil sands development costs and weak equity markets

QUOTES
Rigzone: “…the recent turmoil in global equity markets has made it trickier for smaller exploration companies to raise funds.”