Oilsands Quest, Inc. (BQI)

sid1138 (< 20) Submitted: 2/22/08 1:45 PM

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While there is a "commitment" to lower oil consumption and reduce the carbon footprint of society is being spouted everywhere, the reality is a little different. To cut US consumption by 10% will take a major infrastructure change: nuclear power, large bio-fuel system where the bio-fuels are much more efficient than corn based ethanol, conservation, new cars, etc., etc. This will take years to roll out. In the mean time, oil consumption will continue to grow and the price of oil will continue to hover in the $80-$120 range (if not higher). BQI, with its 50 billion or more barrels of oil is sitting on a LOT of future money.

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AlphaIsland (< 20) Submitted: 6/13/08 1:14 AM

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There are a few things you're missing. 1. BQI will not be an oil sands mining company, it is a in situ oil sands company. 2. I wouldn't say oil sands is a "technology", but instead a source of non-conventional oil. 3. It doesn't seem much of anybody today is truly "committed" to lowering oil consumption. If it were the case, countries like the US wouldn't have so many single-driver cars on the highway. And I don't think that in China and India (where people will be driving to get to work now that they can afford to get a car) there is a committment to lowering consumption either. I think you have to be realistic. Consumption will continue to grow, and oil reserve replacement will continue to be challenging given that most of the reserve upside is in the hands of national oil companies. Sure, in an ideal world, solar, wind, and hydro energy would provide energy for all of our needs, but that's not the case today. Moreover, it probably won't be the case for some time. Just look at the small sliver of the energy pie those things make up today. Sure oil sands and nuclear aren't ideal, but what the world will be considering is will be which is the most realistic solution to our energy needs. I don't think Exxon will be going back to Venezuela anytime soon to look for more oil. The reality is that Canadian oil sands is the only real option, though not the ideal option.

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sid1138 (< 20) Submitted: 7/07/08 11:09 AM

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BQI does not strip mine their products - it is too deep. Instead they use a form of steam extraction. The current steam extraction requires about 15% (maybe more) of the oil extracted to generate the steam. New technology which will be availabe in the next few years will reduce this value further. In addition, a nuclear power plant in the area could generate all of the steam they need for a fraction of the cost of using the oil.

As to you first point - the world could lower its oil consumption by 50%, but that does not solve the underlying problem. The underlying problem is that currently, the world is living off of what is called "peak" oil. This name is misleading, as it implies oil where we have gone past the 50% point of available oil. Instead, the worl has been living off of oil that costs under $10-15/barrel to extract. The world will have to move to oil that costs $20-40 per barrel to extract. This includes very deep wells, oil shale/sand, coal gasification, and other technologies.

It takes time to make that transistion from easy oil to difficult oil. This time will cause the current oil prices to continue to spike up, adding further incentive to go for the difficult oil. By the time the difficult oil comes on line, we could see $180/barrel oil. But, it will then drop down to $100 range (maybe lower) as new technology and new sources start flowing. But, even at $80-100 per barrel, BQI is worth a lot in current value (maybe 2x where it is at now).

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