Upgraders on the Backburner

Financial analyst William Lacey of FirstEnergy Capital came out with a particularly thoughtful analysis in which he asked the question,

Again at the risk of oversimplification, two numbers show the stark contrast between Fort Hills and the EnCana joint venture. The cost of producing a daily flowing barrel of oil through the Fort Hills project is in the US$180,000 range. The price EnCana/ConocoPhillips will pay to reach the same goal is about US$60,000