Oil sand can be a big step in the American energy revolution

America is in an energy revolution.

Oil production has increased by 5 million barrels a day since 2010, up nearly 100%. New technology, especially shale drilling techniques, has opened up new opportunities for oil companies.

Evidence is the numbers. In 2017, the US produced an average of 9.3 million barrels / day. This year, EIA forecast that US oil and gas production will reach a record, averaging 10.3 million barrels a day, surpassing the 1970 record (9.6 million barrels / day).

In 2019, the EIA expects US production to reach 10.8 million barrels a day, which will allow the United States, the world's largest oil producer, to confront Saudi Arabia and Russia.

If there's a big reason for America's energy revolution, it's new technology that has allowed American companies to defeat their opponents.

Thanks to such innovation, a barrel of oil produced in the US can only cost 20 USD / barrel.

Even OPEC cannot stop US shale producers, who have persisted in global production and historically low prices from 2015 to 2017, and have now risen to success.

But the shale revolution is beginning to reach its limit. With shale production likely to peak right after 2020, investors are looking for new and innovative technologies that will break new barriers to output.

While OPEC manufacturers still adhere to their policies, US companies are exploring new horizons, reduced production costs and profitability.

An important area where advances will be made is in oil sands, an industry that most companies neglect. Thanks to Petroteq and other creative companies, clean oil sand mining technology has been unlocked, cheap prices may soon lead to a new chapter in the US energy revolution.

Oil sand: Unusual replacement

Oil sand is a kind of accumulation of bitumen. This type of sand is naturally present in the mixture of sand or clay, water and is a form of oil with a great viscosity and density.

Potential in oil sand mines is amazing, Canadian oil sands in Alberta are estimated to contain 165.4 billion barrels.

In the United States, large oil sand mines are not yet exploited. In Utah, for example, there is a total bitumen reserve of 30 billion barrels.

However, the three things that are keeping untapped oil sand are costs, opposing politics and environmental risks.

Production from oil and sand oil is always costly. When prices fall in 2015, companies start to harvest from their sand oil investments, which are now too expensive to produce.

In 2017, Royal Dutch Shell oil group completed the sale of oil sands in Canada. After entering the drilling industry a few years ago, Shell concluded that the cost of continuing to invest in Canadian oil sands was simply too high.

Other companies have also done so, investing in Alberta's sand oil field has been dumped by Marathon Oil, Statoil and other companies.

Low prices and growing concerns about "dirty" oil sands production are considered to be one of the highest carbon energy production methods.

Oil sand has become one of the sources of dirty energy, causing a political reaction. The news of Canada's oil industry recently focused on oil sand production that is dirty, expensive, destructive and ultimately non-economic. Opposition to new oil sand projects in the US has increased in recent years.

But that trend may reverse despite the sell-off, bad news and lower prices, oil production will increase in 2018.

Unlock potential

Advances in oil sand technology and efforts to make the process cleaner and cheaper, means the industry may be ready to recover.

Petroteq Energy is conducting safe and clean methods to exploit oil sand resources. The company has two patents on technical methods to extract oil sand in a way that avoids the production of waste.

The company has produced 10,000 barrels from its Utah facility in 2015 using their completely new technology, and now they are upgrading a second facility in Utah to increase productivity.

The company's goal, according to CEO Alex Blyumkin, is developing "sustainability." Exclusive methods allow Petroteq to extract sand oil without producing excess waste. By using blockchain technology, the company cuts production costs and enables more efficient production of oil sands.

Questions about costs

What makes shale drilling in the US so successful is a cost issue. At a time when oil prices were falling, US operators used new technology to cut costs and remain competitive. By 2017, shale drilling machines have reduced costs by 42%.

Today, the average cost of a worn out oil barrel ranges from 20 USD - 50 USD. That is seen from Saudi Arabia or Kuwait, where the cost per barrel can be as low as 10 USD.

But that does not take into account the "social costs" that OPEC countries must consider. The drop in oil prices after 2015 put pressure on OPEC countries, all of which depend on oil exports to maintain a fiscal balance.

Middle Eastern oil producers have been under tremendous pressure, while Venezuela has been plagued by political and economic turmoil due to falling prices.

Social costs, according to a study by the Oxford Energy Research Institute, will increase OPEC oil costs in the coming years. While US shale operators may be profitable at $ 50 a barrel, OPEC countries want $ 70 or even $ 100 a barrel to maintain their economies. This allows US manufacturers to have a great competitive advantage.

Now, thanks to technical advances from Petroteq and other companies, oil sands can be as profitable and cheap as shale.

Through cleaner methods and management based on blockchain, Petroteq can produce for at least 20 USD / barrel.

Petroteq's methods can be licensed anywhere, and can release billions of barrels of oil inside oil sands throughout West America.

If their technology began, oil sand could be the next big step in the US energy revolution, ensuring US dominance in the coming years.