The Tar Sands Bubble

October 8, 2014 at 10:13 am Leave a comment

Without KXL, tar sands are a bad investment. By fighting the pipeline, activists have disrupted the industry’s bottom line.

This year, both Shell and France’s Total SA halted tar sands projects, saying they weren’t economically viable. Last year, Suncor Energy of Canada and Total killed joint plans to build a massive bitumen upgrading plant in Alberta. “Market conditions have changed significantly,” the Suncor CEO said. The cancellation cost the companies more than $1.5 billion. And yes, the delays in building Keystone XL are playing a major role. When Statoil announced its postponed project, the company cited “limited pipeline access” as a factor.

“Tar sands extraction is a marginal business in the best of conditions,” says [Anthony Swift, a staff attorney at NRDC]. “As the financial risks stack up, companies are reconsidering throwing millions and millions of dollars at these projects.”

Read about the economics of The Tar Sands HERE.

 

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Entry filed under: Energy, Peak_Oil.

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