Oil sands projects bogging down
The recent drop in oil prices, in combination with the failing economy, is taking a toll in the development of Canadian oil sands. Because of low labor productivity and increasing costs, the Canadian-based industry is finding it increasingly difficult to compete in the global marketplace. Poor environmental practices and an "uncertain regulatory picture" are, according to a recent report by consultants McKinsey & Co., also contributing factors to a slew of development slowdowns and "postponements."
One high profile example is Royal Dutch Shell. Yesterday, they announced they are holding off on phase II of their Athabasca oil sands project, although they will continue on with their existing expansion operation. Other projects seeing similar actions include (but are not limited to) the $20.6-billion Voyageur oil sands project by Suncor, the $23.8-billion Fort Hills development by Petro Canada, Teck Cominco Ltd. and UTS Energy Corp as well as $6.6-billion Long Lake project by Nexen Inc. and OPTI Canada Ltd. We expect that, as the price of oil begins to climb sometime in the near future, the corporations will continue on with their plans to destroy Alberta for fun and profit.
[Source: Globe & Mail]
Reader Comments (Page 1 of 1)
Geoff de Ruiter 7:35PM (10/31/2008)
I have said this before, the Alberta tar sands is the biggest and ugliest scar on Canada/North America. there should be no option to continue/expand with this project. Alberta should be absolutely ashamed of the destruction and toxification of the land and water systems around it. On a lighter note "low labor productivity" that caught me as hilarious, because it goes to show many of those young oil workers are lazy and or tired from staying up late drinking, doing coke or pot.
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MemphisNET 10:45PM (10/31/2008)
I used to work up there, for Canadian Natural Resources Limited in Fort McMurray (hour north to be exact). It's stunning (shocking) what's happening up there -- some will say its 6hours North of civilization (Edmonton)... but it's still a mess up there.
Drugs are huge, crime is on the rise, 80% of the people move there are money grubbing assholes... its such a shame... the country up there is gorgeous -- until you drive through Syncrude which is litterally built on each side of the highway. Looks like Las Vegas at night, except there is always that smell of crude in the air.
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stevefazek 11:55PM (10/31/2008)
People who hate a couple hundred acre coal strip mine would have a fucking heart attack if they saw whats going on there
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Sun Petro Canada 9:43PM (11/10/2008)
Yes, Oil companies of US and Canada must stop its Phase I and Phase II operations that would literally destroy the Canadian greeneries. Glad to see it would be the world prices on oil that will put a big dent in oil sand economy. Go Mooses..Go deers and Go away oil sands..may be in another 50 years come back and haunt them. But not now...
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aguywhoknows 2:51PM (1/21/2009)
I musta strolled into the wrong blog, you guys are rediculous, you don't see me on here commenting on the environmental impacts of recycling and the absurdity of chaining yourself to a tree in a BC forest do you, no, because I'm not right in the middle of it. This I am right in the middle of; have you ever rode in a helicopter over the area north of Fort Mcmurray? Or south to La Biche? "Destroy Canadian greeneries" is a rediculaous statement. I have spent hundreds of hours in these skys. There is nothing pretty about hundreds of thousands of acres of bottomless muskeg pits. Might as well dig them up and make use of the land, which is otherwise good for nothing. (Most of you reading this will have to look up what muskeg is but please do before you comment) Also most of you are probably unaware that the new technology (insitu) or SAGD leaves a very small very attractive (in my opinion) foot print with zero strip mining. They are trying. Syncrude is currently working on an emmisions reduction project, it's not as bad as you think. Also I have been in and around Ft Mac off and on for 8 years now and remain drug free, thanks for your 2 cents though Geoff. Thank you everyone.
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Carney 3:54PM (1/21/2009)
I'm a lot more worried about OPEC-funded lunatics who are literally trying to destroy us than I am about Western companies trying extract oil from oily sand.
But in the end, tar sands, oil shale, etc., will never win against the Saudis, who have the lowest production costs in the world.
The solution is to mandate flex fuel capability in all new cars, like seat belts, so that they can still run gasoline like now if that's all they can find, but can also run on alcohol fuel whenever they can.
Alcohol production can't be "cornered" by an OPEC like entity which seeks to choke production and drive up cost, let alone funneling those inflated earnings to projects like the Iranian nuclear program, Pakistani madrassas, Hezbollah in South America, etc etc.
Because the fuel will be permanently cheap, our economy will be better off. And because the extremists will have a revenue stream of hundreds of billions pinched off, our security will improve as well.
And finally alcohol fuels burn much more cleanly in the air, biodegrade readily in the hydrosphere when spilled or leaked, and the plants that generate many of them, such as all ethanol and much methanol, contribute to global cooling.
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