NOT GOOD: Another Oil Sands Project Stops

Thailand-based PTTEP cancels plan to develop Mariana oil sands project, final decision on Alberta investment still to come.

The oil sands have been hit with more bad news. Thailand-based PTT Exploration and Production (PTTEP), has cancelled plans to develop their Mariana oil sands project. They have now taken writedowns equaling $1.8 billion USD on the project.

As noted by BNN, “The Thai group’s decision marks the latest blow to the oil sands industry in Canada, where dozens of projects have been shelved due to high start-up costs and low oil prices. Shares in PTT Exploration and Production Pcl (PTTEP), the upstream arm of PTT Group PTT.BK, fell 4.9 per cent on Friday morning.”

Impact of low oil prices made worse by government policy

The fact that BNN points to both “high start-up costs and low oil prices,” is important. Lower oil prices make it tougher for oil sands projects to go through, but that’s not the only reason projects are getting delayed or scrapped. If taxes were low and regulations eased, it would be far more affordable to begin oil sands projects and make a profit – even with lower prices. Yet, both the Trudeau and Notley governments are doing the opposite, slamming the oil sands with new regulations, new taxes, and more and more bureaucracy. As a result, it’s tougher and tougher to overcome low oil prices, and that’s having a devastating impact on the sector.

Spencer Fernando

4
Share Your Thoughts

avatar
3 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
4 Comment authors
DaveClive EdwardsMarlene WalesJen Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Jen
Guest
Jen

Not surprising at all that Alberta or for that matter the ‘West’ is under siege. According to Mr. Jim Eglinsky cpc who rose to give a piece from his statement regarding to the Tankard Moratorium in western canada yet the flow of Tankards into Eastern part of Canada has double.
What does that tell you Spencer.

Marlene Wales
Guest
Marlene Wales

Spencer, why has the toxic chemical valley in Sarnia been kept such a Secret! W5 did an show on it, in my area, last week! Never heard of it before. It was titled Canada’s most Toxic Secret. Today I clicked on a Global News article about Canada losing 2 Canadian Icons, low and behold, after talking about these there is an article about this hidden so most people don’t see it! When ever there is any discussion about pollution on the news they reference the Dirty Oilsands! No mention of the easts dirty little secret! Last night on the news… Read more »

Clive Edwards
Guest
Clive Edwards

Energy is a strategic resource. It should not be in the hands of foreigners. Canadians should develop petroleum from finding it to processing and shipping it. If foreigners don’t want to buy our finished product, after Canadian needs are met (at below international prices!) They can piss off. It’s time we stood on our hind legs as Canadians and took control of all our resources. For example, the Americans think of Canadian uranium as theirs! Screw NAFTA; we need our own version of the CIA to protect our country, and do whatever dirty deeds need to be done to make… Read more »

Dave
Guest
Dave

Sad to say, but (it seems) the canadian psyche, since WWII, has been gradually eroding away. Unless we see some serious change, canadians can’t or won’t take control.