Bloomberg reports this morning on the declining prospects for Canadian tar-sands development as the price of oil falls.
Excerpts from the article by Joe Carroll:
- “Dangerous and difficult oil fields that looked like goldmines when crude fetched more than $100 a barrel have turned into money pits.”
- “Even before the oil market collapse began in late June, developers in Canada’s oil sands were already doubting the viability of new projects after a $250 billion building spree over the preceding eight years.”
- “France’s Total SA (FP) put its C$11 billion Joslyn joint-venture project with Suncor Energy Inc. on hold in May, citing escalating construction costs … In September, Norway’s Statoil ASA (STL) delayed work on the 40,000 barrel-a-day Corner oil-sands development. Devon Energy Corp. said in November that a decision on how to proceed with its Pike oil-sands venture with BP Plc (BP/) will be made by the end of 2015.”
In a related story, Sean Cockerham of the McClatchy Washington Bureau reports on how the shifting oil market raises questions about the economic viability of the Keystone XL pipeline, regardless of the politics around the project.