• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
OPEC+ Rules in an Increasingly Tight Oil Market

OPEC+ Rules in an Increasingly Tight Oil Market

The market is growing increasingly…

Could The U.S. Become Lithium Independent?

Could The U.S. Become Lithium Independent?

Despite having some of the…

The Age Of Canada’s Huge Oil Sands Projects May Be Over

After Teck Resources canceled its oil sands project, even approved oil sands projects could be difficult for Canada’s companies to bring online in the short term until more pipeline capacity becomes available and the federal regulatory process becomes clearer, analysts tell The Canadian Press.

Last month, Teck Resources said it had withdrawn its application for a regulatory review of the Frontier oil sands project.

The federal government of Canada was set to decide by the end of February whether to approve Teck Resources’ Frontier Project—a truck-and-shovel oil sands mine located between Fort McMurray and Fort Chipewyan in northeast Alberta.

But Teck Resources didn’t wait for the federal government’s official response and dropped the project estimated to be worth US$15.6 billion (C$20.6 billion).

According to Phil Skolnick, an oil sands analyst at Eight Capital, Teck Resources’ decision shows that companies with already approved projects and plans for expansion of existing facilities have an advantage over new projects, especially new projects for open mining of bitumen.

The low oil prices make the economics of oil sands mining projects more difficult to work, Skolnick told The Canadian Press.

“I think the era of multibillion-dollar oilsands projects is definitely over,” Benjamin Israel, a fossil fuels analyst for the environmental Pembina Institute, told The Canadian Press.

Related: Russia’s Oil Production Rises Ahead Of OPEC+ Meeting

“Under any scenario that has us addressing climate change, business-as-usual cannot continue and, simply, won’t be profitable in the long run as the market shifts toward lower-carbon products,” Simon Dyer, executive director at the Pembina Institute, said last week, commenting on Teck Resources’ decision to ditch the project.

Canada’s oil sands production could grow in the future, Eight Capital’s Skolnick told The Canadian Press, but the growth will depend on additional pipeline takeaway capacity, which has been the key hurdle to Canada’s oil industry growth in recent years.

Upstream capital investment in Canada’s oil sands is expected to grow this year from 2019 for the first increase in capital expenditures in five years, the Canadian Association of Petroleum Producers (CAPP) said earlier this year, attributing its rosier expectations for 2020 to “a more competitive economic environment” due to some recent policies that the Alberta government has undertaken.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News