CALGARY — The first phase of Imperial Oil Ltd.’s Kearl oil sands mine will cost $2-billion more than previously expected as the company faced issues transporting Korean-made modules to the mine site in northern Alberta and contended with harsh weather during startup.
The first 110,000-barrel-per-day phase will now cost $12.9-billion, up from a previous estimate of $10.9-billion.
Taking into account a second $8.9-billion phase in the works, the whole development is expected to have a cost of $6.80 per barrel, up 10% from a prior estimate of $6.20.
CALGARY • Imperial Oil Ltd. will have to scale back plans to double production by the end of the decade if planned oil pipelines are delayed, its new CEO said Thursday.
But Richard Kruger, the Minnesotan who took the controls of Canada’s oldest oil company on March 1, said he’s confident that Keystone XL from Alberta to the U.S. Gulf and other proposed pipelines to Canada’s West and East will go ahead.
CHRISTINA LAKE, Alberta – After two years of study, President Barack Obama this week defined the criteria for what will be one of the signature decisions of his presidency: the proposed Keystone XL pipeline that would carry heavy crude from here to American refineries must not “significantly” worsen global warming.
Anticipating that standard, Canadian oil companies have embarked on a race to develop cleaner technologies that will make their production less damaging to the environment.
Imperial Oil Ltd said on Monday its expects its $12.9-billion Kearl oil sands project to begin operating within the next two weeks, more than three months past its original target, but the company cannot yet say how much oil the plant will initially produce.
Pius Rolheiser, a spokesman for Imperial, said operations at the first of Kearl’s three production trains, capable of handling up to 50,000 barrels of heavy oil sands crude per day, will begin by month’s end.
Environmentalists opposed to the Keystone XL pipeline are expanding their fight against imports of Canadian heavy crude oil by trying to block rail projects that offer another way for it to enter the U.S.
“Debating rail or pipelines is like debating which kind of poison you want,” Daniel Kessler, a spokesman for 350.org, an environmental group, said in an interview. “There is a substantive effort under way in many places to block rail.”
CALGARY – Alberta’s oil sands, long regarded as an expensive sandbox for energy giants, are more competitive with global sources of crude than recent cost blowouts may lead investors to believe, a survey of 135 global oil and gas companies shows.
Suncor Energy Inc is expected to shelve plans for a multibillion-dollar oil sands processing plant in northern Alberta when it announces the fate of the facility in the coming days, blaming a forecast for weakening returns.
The decision by Canada’s largest oil company on its long-delayed and partially built Voyageur upgrading plant in Alberta is one of a pair of major developments in the oil sands due this week, the other being the targeted start-up of Imperial Oil Ltd’s Kearl mining project after about four years of construction.
CALGARY — At least one Calgary oil executive is appealing to Canadian pocket books as the U.S. State Department decides the fate of TransCanada Corp.’s Alberta-to-Texas Keystone XL pipeline.
Export constraints on Alberta heavy oil production are costing each Canadian $1,200 per year, the chief executive of Cenovus Energy Inc. said Thursday.
Canadian heavy oil prices slid a further $4 as traders absorbed news of Enbridge’s decision to ration capacity on Lines 4 and 67 that transport oil from Alberta to the United States due to power outages in December.
Western Canada Select declined by $4 to a $41-a-barrel discount to U.S. benchmark West Texas Intermediate oil at 1:45 p.m. EST, close to the record discount of $42.50 touched on December 14.