Sunday, November 2, 2008

Reduced Demand for Alaska Gas

Canadian tar sand projects demand lots of energy - energy that could be supplied by Alaska gas (more info here).

The downturn in oil prices has the Canadians rethinking their expansion projects - Here's the latest regarding Shell (LINK):

Shifting sands (Times Online Robin Pagnamenta, Energy and Environment Editor 10/31/08)

— Canada's oil sands industry is under pressure as high costs, plunging oil prices and turmoil in global financial markets trigger a wave of project delays

— This month alone, projects worth more than C$40 billion (£20 billion) have been postponed

— Petro-Canada, one of the largest players, is deferring a C$10 billion investment decision on a new bitumen processing plant

— Suncor Energy, another big player, is postponing by one year the construction of a C$20 billion upgrader plant, which turns bitumen into a more easily refinable, synthetic crude.

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