Monday, August 06, 2007

A $38 Billion Dollar Week

No, that isn't a mistake. Alberta oil sands saw another $38 Billion invested into the region over the last week.

The only thing stopping the region going into full production mode is high construction costs and a shortage of labour. Oil sands' labour demands are set to double from 15,000 today to 34,000 by 2010.

Of the development plans announced:

"Shell Canada's plan to spend up to $27 billion on Canada's biggest oilsands upgrader, the $6.6 billion friendly takeover bid for Western Oil Sands (TSX:WTO) by U.S. refiner Marathon Oil Corp., and a $4.4 billion regulatory strategy filed by Suncor Energy (TSX:SU) for the mining plan of its Voyageur South site all indicate the need to ensure a smooth development path for the tar-like bitumen."
Yahoo News

Edmonton is the hub of the oil sands activity, this kind of investment so close to the city shows this oil boom is here to stay. These companies don't throw around this kind of money without a lot of research. The demand for housing will increase exponentially and when demand rises so do prices.

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