Royal Dutch Shell announced its third-quarter earnings of $1.8 billion. The figure includes $2 billion in losses because of the company's decision, announced at the same time, to stop construction of its Carmon Creek tar sands plant, near the town of Peace River, Alberta. It cited inadequate pipeline capacity as the reason for the stoppage. The facility was designed to extract 80,000 barrels of oil per day. The company is retaining its lease and hence the ability to resume construction. The company also announced a $2.6 billion write-off resulting from its activities, now ended, off the Alaskan coast (earlier story).
Coverage:
The announcement comes shortly after the release of a white paper, "Lockdown: the End of Growth in the Tar Sands", by Oil Change International, a group critical of the oil industry. However, the Conference Board of Canada recently predicted (summary) that "Canadian crude oil production is expected to expand significantly over the medium term."
(Score: 2, Interesting) by khallow on Saturday October 31 2015, @06:28AM
The pipelines exporting tar sands out of Alberta are almost full, according to new analysis by Oil Change International. Without major expansion-driving pipelines such as Energy East, Kinder Morgan or Keystone XL, there will be no room for further growth in tar sands extraction and tens of billions of metric tonnes of carbon will be kept in the ground. This would be a significant step towards a safer climate.
All proposed new pipeline routes out of Alberta are facing legal challenges, opposition by local authorities and regulators, and broad-based public opposition. All of the major projects have been significantly delayed with some cancellations seemingly imminent. No pipeline has been built since 2010, despite active industry efforts.
So Shell's claim of "inadequate pipeline capacity" is echoed by a group which appears to be resisting tar sand development.
(Score: 2) by aristarchus on Saturday October 31 2015, @08:41AM
khallow, khallow, khallow! We talked about this, did we not? And did you not promise to stop posting erroneous and false information? Oh, you didn't? Well, alright then. Carry on.
(Score: 1) by khallow on Saturday October 31 2015, @01:46PM
khallow, khallow, khallow! We talked about this, did we not? And did you not promise to stop posting erroneous and false information?
This is the fallacy of innuendo. It is strongly implied that I wrote a falsehood in my previous post, but not actual falsehood is mentioned.
(Score: 3, Touché) by khallow on Saturday October 31 2015, @02:06PM
(Score: 2) by DeathMonkey on Monday November 02 2015, @05:30PM
Interesting point. Here is the article khallow mentions. [priceofoil.org]
This information does not appear false to me.