Recently, I had the unique opportunity to tour two different oil sands operations near Fort McMurray, in northern Alberta. I saw a massive open-pit oil sands mine, and the associated reclamation effort, operated by Syncrude Canada Ltd. I also visited an in situ oil sands recovery project called Surmont, operated by ConocoPhillips (NYSE:COP).

The trip was sponsored by the American Petroleum Institute (API), which paid for the airfare and accommodations. Managers at both Syncrude and ConocoPhillips granted me access to any parts of their operations I wanted to see (within allowances for safety). And everyone answered any and all questions I asked.

Post-trip, I have complete editorial freedom to write about what I saw and learned. And I learned a lot. So this is Part I of a two-part series. Watch for Part II.

The Past and Future of Oil and Oil Sands

The first thing that struck me about visiting

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Do you remember this time last year? As spring turned to summer, energy prices were moving upward. By mid-July 2008, oil prices peaked at $147 per barrel. But as with Gen. Pickett and his famous charge at Gettysburg, that lofty level of $147 was the high-water mark for oil prices.

By August of last year, the price of oil was retreating, and it was a hard slog on the way down. By midwinter, in December 2008 and January 2009, oil prices were in the $30s per barrel - a drop of over 75% within six months. It was a wild ride.

Natural gas had a similar rise and fall last year. In July 2008, the NYMEX price for natural gas was around $13 per mcf (thousand cubic feet). By October 2008, that price was cut in half. In fact, natural gas prices trended down throughout the chilly winter of 2008-2009. The current

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Idiocracy in action: Congress blocks bill to audit the Fed… No surprise: American loan defaults hit record… Surprise: Could Canadians be next? China takes another “World’s No. 1” from U.S. … Dan Denning, Byron King on recent triumph and tragedy in the oil patch…

Great news: The Federal Reserve will retain its right to operate in secrecy.

“Thank God for Rule 16!”

Late yesterday, the Senate majority put the kibosh on a last-hour provision in the 2010 spending bill that would audit the Fed. Not because it’s a bad idea… but because of the arcane Rule 16, which prohibits policy legislation from being added to spending bills. (The kind of “rule” that’s only evoked when the majority gets uncomfortable.)

“The Federal Reserve will create and disburse trillions of dollars in response to our current financial crisis,” said Sen. Jim DeMint, who spearheaded

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CRUDE OIL had a DRAW of 3874K.  Consensus was for a DRAW of 1750K.  BULLISH (AND  OFF THE CONSENSUS!) 

GASOLINE had a BUILD of 3385K.  Consensus was for a BUILD of 500K.  BEARISH(AND WAY OFF FROM THE CONSENSUS!)

DISTILLATE had a BUILD of 308K.  Consensus was for a BUILD of 900K.  BEARISH (AND OFF FROM THE CONSENSUS!)

Another contrary report here with mixed numbers.  Contrary because the analysts (who are these people and how much are they getting paid?) have it way wrong again!  But what really matters to us is the trading environment. 

As I have mentioned in the last two oil inventory posts we have had an extended run for oil almost to its 200 TANKS.  The OIH and the XLE were ready for consolidation

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For Immediate Release

Chicago, IL - April 24, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ConocoPhillips (COP), Exxon (XOM), Chevron (CVX), Linear Technology Corp. (LLTC) and Xilinx Inc. (XLNX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

COP Beats on Strong Production

ConocoPhillips' (COP) first-quarter results came in better than expected due to strong oil and natural gas production. Market expectations reflected the company's interim guidance provided on April 2. We have a Hold rating on COP shares, as we see better opportunities

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Highlights include ConocoPhillips (COP), Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) and Valero Energy Corp. (VLO).ConocoPhillips' (COP) first-quarter results came in better than expected due to strong oil and natural gas production. Market expectations reflected the company's interim guidance provided on April 2. We have a Hold rating on COP shares, as we see better opportunities in this space through Exxon (XOM) and Chevron (CVX). Both of these are scheduled to report quarterly results next week.The company reported recurring EPS of $0.56, down from $2.62 in the first quarter of 2008. The single largest contributor to the negative comparison is the price of crude oil, which will be a recurring theme this earnings season in the oil patch.At $42.97 a barrel, the benchmark West Texas Intermediate (WTI) was down more than 56% from the year-earlier level. Benchmark ...

At its annual analyst day in New York yesterday, Exxon Mobil Corp. (XOM) offered a business-as-usual outlook for 2009 and beyond, in line with its status as the conservative benchmark in the oil patch. Management stated that the company's operating and strategic plans remain unaffected by the credit market squeeze and sharp commodity-price drop.But that's no surprise -- after all, this is Exxon we are talking about. The company is as good a credit as Uncle Sam, with a AAA rating and more cash than debt on its balance sheet. As of the end of 2008, it had $32 billion in cash and around $7 billion in debt.Growth in oil and natural gas production has been a lingering concern in the Exxon story, which is understandable given its considerable production base. It takes quite a few new barrels to move the needle on Exxon's ...

Despite the continued sell-off in the price of bullion, better than expected earnings results in the financial sector propelled the broader markets higher during Thursday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange added 3.21%, while the TSX Gold Index managed to gain 1.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 0.92% with the advancers edging out the decliners by a 409 to 368 margin on 126 million shares traded.

A takeover offer in the oil patch helped move the junior oil stocks higher. Verenex Energy surged C$1.75 to C$9.55 thanks to a C$10 per share takeover offer from CNPC International.

The base metal miners had a rare good session with Teck Cominco (NYSE:TCK) leading the way by adding C$0.47 to close at C$4.52.

Uracan Resources tabled an inferred resource of 80.7 million tonnes grading 0.012% U308 at the TJ

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Mortgage rates plunge to record lows… but are they at the bottom?… Overlooked details from Friday’s jobs news… troubling signs from retail and energy sectors… Rob Parenteau charts a different way to view the S&P… could the worst be over?… Russia/Ukraine gas conflict ends… who “won” the latest resource skirmish… Bill Gross’ sad-but-true guide to 2009… how to invest amid rife market manipulation.

If you’ve got money, credit and patience, today is your cheapest opportunity buy or refinance a house in at least 38 years.

The 30-year fixed-rate mortgage carries a rate of 5.01% this morning, the lowest rate of its kind since at least 1971, when Freddie Mac started keeping track. Since the peak of the credit crisis in late October, the 30-year mortgage has plunged almost 1½ percentage points, even past its 5.8% average this time last

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Government mulls mortgage price-control plan… who needs the free market anyway? Dan Denning on the true meaning behind the recent bull market in bonds. Stocks rally on Beige Book release… did the Fed send us the wrong copy? Bill Gross on stock evaluation for the Brave New World of tomorrow. Byron King with anecdotal evidence that oil is well oversold.

The vomit approach continues at the Treasury. This time their throwing up historically low mortgages on the wall… just to see if they stick. The U.S. Treasury is considering a proposal to offer new mortgages at 4.5% through Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). That’s a point and a half lower than the silly “free market” says it should be.

Should this mortgage plan come

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