The slump in crude oil prices is putting more development projects on ice. Shell today withdrew its application to build a 100,000 barrels daily oil sands mining project near Peace River in Northern Alberta. Last week Shell delayed expansion of its existing tar sands operation. Many other oil sands projects have already been delayed.
In the East Irving Oil said the massive $8 billion Elder Rock oil refinery project in Saint John, N.B., is being stretched out with an eight-year timetable instead of four. Irving now operates a 300,000 barrels daily refinery at Saint John – Canada’s largest. A final decision on Elder Rock will be taken next year by Irving and partner BP Plc.
“We face rising capital costs, labor shortages and increased global competition,” said Kevin Scott, Irving’s director of refining.