But a sharp decline in the price of oil makes many of the new
oil sands projects less viable.
Not exact matches
If you're talking about a new
project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 - year
oil sands project is a lot of risk for
less than a 10 % rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.
If you're talking about a new
project with no significant investment already deployed, building a new mine if you expect today's prices to hold in the long term is a tough call — a 50 year
oil sands project is a lot of risk for
less than a 10 per cent rate of return — but even there, you can see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when prices are low.
Shell states that tar
sands are
less damaging that coal: Well since when was coal and
oil used to the same ends unless they are talking about widespread adaption of CTL technology which could happen in some countries with large scale coal rserves I guess but even I doubt that CTL
projects will scale to 3 — 5 mbpd which is the
projected output of Albertas
oil sands come 2030.
Expect more
oil sands projects to capture and reuse waste heat and embrace alternative processes that consume
less energy.
The new impact statement says that extracting, shipping, refining and burning
oil from the tar
sands produces more climate - altering greenhouse gases than most conventional
oil, but
less than many of the
project's critics claim.