Thursday, January 29, 2009

Spending In The Oil Sands

A major oil sands player, Imperial Oil, is looking to invest in a C$8 billion Kearl oil sands venture in northern Alberta. With a long term view the company hopes to profit from the tightening credit conditions and take advantage of freed labour and resources.

Just goes to show that the long term view is the way to think when investing in the area. Especially when it comes to real estate. Of course there will be ebbs and flows in the market but over all waiting them out, buying cash flowing properties strategically are all ways to keep your investment solid.

"Canada's oil sands are the largest crude deposits outside the Middle East, but production is far more complex and expensive. With oil prices around $40 a barrel, down from a July peak above $147, at least C$90 billion of oil sands developments have been put on hold.

But Imperial, the Canadian affiliate of U.S. oil major Exxon Mobil Corp <XOM.N>, has said it believes its project economics will improve as rivals drop out, freeing up labor and materials. It is expected to make a decision on going ahead by the end of the first quarter." Read More

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