Oil sands too expensive: Saudi official

Shaun Polczer, Calgary Herald
Published: Wednesday, November 14, 2007
 
Canada is one of the world's costliest oil producers and requires high prices to remain viable, Saudi Arabia's oil minister said in Riyadh on Tuesday, suggesting Saudi Arabia is a better value for investors.
 
Commenting in Arabic, Ali Al-Naimi noted that the "sands of oil" in northern Alberta need prices to be at least $40 to $60 US a barrel to develop the massive reserves, which are pegged as second only to Saudi Arabia's.
 
"Today, the price of oil is proper for producers there," he said at a news conference to kick off the third OPEC summit.
Saudi Arabia's Prince Abdulaziz Bin Salman (L) and Oil Minister Ali al-Naimi arrive for a news conference at the third OPEC Summit International Oil Exhibition in Riyadh November 14, 2007. REUTERS/Ali Jarekji ( SAUDI ARABIA)
Saudi Arabia's Prince Abdulaziz Bin Salman (L) and Oil Minister Ali al-Naimi arrive for a news conference at the third OPEC Summit International Oil Exhibition in Riyadh November 14, 2007. REUTERS/Ali Jarekji ( SAUDI ARABIA)

"If you can show me that investing and producing a barrel from the sands in Canada is better than investing and producing a barrel in Saudi Arabia, then I would go there, but it doesn't," Al-Naimi said bluntly.
 
He railed against the prospect of $100 oil by suggesting "pessimists and speculators" have driven up the price by playing on fears of war and disruptions, raising doubts about the ability of Saudi Arabia to increase capacity to 12 million barrels a day by 2009.