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Money ‘Nail in the Coffin’: Era of Big Oil Sands Mines May Be Over

01:45  25 february  2020
01:45  25 february  2020 Source:   msn.com

Canadians narrowly approve construction of Teck mine, says survey

  Canadians narrowly approve construction of Teck mine, says survey The construction of the $20-billion Teck Resources' Frontier oilsands mine has left Canadians divided, says a new survey. According to the non-profit Angus Reid Institute, it's latest survey shows Canadians "narrowly" support the project, with 49 per cent approving and 40 per cent opposing.It conducted a random sample of 1,300 Canadians — who were also members of the Angus Reid Forum — in an online survey about the Teck mine on Monday and Tuesday.The survey shows strong support in the province where the project would be built.

(Bloomberg) -- Canada’s oil sands industry may have already built its last big mine .The cancellation of Teck Resources Ltd.’s Frontier project in northern Alberta -- which envisaged producing more crude than OPEC member Gabon -- epitomizes the struggles of an industry that has already seen most

Mining refers to the oil sands extraction process whereby large amounts of earth are removed, mixed with water and transported by pipeline to a plant, where the Canada’s oil sands is the third largest proven crude oil reserve in the world, also being the biggest supplier to t… twitter.com/i/web/status/1…

(Bloomberg) -- Canada’s oil sands industry may have already built its last big mine.

The cancellation of Teck Resources Ltd.’s Frontier project in northern Alberta -- which envisaged producing more crude than OPEC member Gabon -- epitomizes the struggles of an industry that has already seen most foreign investors flee. It’s not clear that any other proposed mine would be able to clear the hurdles that felled Frontier in the years to come, possibly spelling the end of an era of megaprojects that transformed North America’s energy landscape by turning Canada into the top foreign crude supplier to the U.S.

The unbelievable things coming out of Jason Kenney’s ‘War Room’

  The unbelievable things coming out of Jason Kenney’s ‘War Room’ Jen Gerson: Nothing demonstrates the parochialism and myopia of the people running Alberta Inc. more than their support for the Canadian Energy CentreEditor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

The oilsands boom is over — and locals like Nicole Bourque-Bouchier say that’s OK. Growth in the oilsands began to slow in the last few years, as the oil price crash forced some companies to delay The mine is the last of several megaprojects completed in recent years, which also includes Canadian

350.org policy director Jason Kowalski added, “This announcement is another nail in the coffin for the coal industry, and a warning to all fossil fuel companies that the era of unrestrained development is coming to an end. Over the coming months, the President will come under increasing pressure to stop

“This may be the nail in the coffin,” said Laura Lau, who helps manage C$2 billion ($1.5 billion) in assets at Brompton Corp. in Toronto. “I would expect some smaller projects would have a better chance going through.”

On top of middling oil prices, a pipeline capacity shortage in Canada and heightened competition from U.S. shale, the oil sands have become a particularly shunned industry in a world of rising concerns about climate change, leading some major funds to divest their holdings. And with speculation oil demand could peak in 10 years or so, companies are growing increasingly wary of committing to multibillion-dollar projects that require decades of operation to pay out.

The oil sands of Alberta have drawn the ire of environmental activists because of the region’s vast open-pit mines that require the clearance of forest, produce massive lakes of wastewater and consume more energy than other ways of extracting oil. Refining the sticky, black bitumen scooped from some mines in so-called upgraders is also very carbon-intensive. Newer, smaller projects, while more efficient, still use a lot of energy to extract the oil with the help of steam.

As Teck oil sands mine hopes for okay from Canada's Trudeau, 20 other projects on hold

  As Teck oil sands mine hopes for okay from Canada's Trudeau, 20 other projects on hold As Teck oil sands mine hopes for okay from Canada's Trudeau, 20 other projects on holdWINNIPEG, Manitoba (Reuters) - As Canadian Prime Minister Justin Trudeau considers whether to approve Teck Resources' Frontier oil sands project, roughly 20 others sit on the shelf as companies delay investment decisions hoping for new pipelines and higher prices.

Midnight Oil 's official music video for 'Beds Are Burning'. 499 видео Воспроизвести все "BEST OF THE 80's" - A Compilation of the Most Popular Music Video's Ever Played on MTV in the 80's.Robert Rainey.

Low oil prices and environmental concerns made construction unlikely. Lindsay said his company found itself in in the middle of a debate over oil development and climate change and said his company supports carbon pricing and a cap on oil sands emissions.

While attempts to make Canada’s oil sands into an economically viable source of crude have been ongoing for about a century, the industry experienced its heyday in the 2000s and 2010s, when fears abounded that the world may be running out of crude.

Those fears prompted a flood of global investment as nations and international producers rushed to secure supplies. From 2004 to 2014, about C$210.1 billion was invested in the oil sands, according to data from the Canadian Association of Petroleum Producers. Over those 10 years, oil-sands output more than doubled, to 2.2 million barrels a day, and Canada shot up from the world’s eighth-largest oil-producing nation to the fifth-largest.

The industry has struggled since global oil prices crashed from more than $100 a barrel in mid-2014. New pipeline projects were stalled by environmentalist opposition and legal challenges, weighing on Canadian heavy crude prices. International giants including Royal Dutch Shell Plc and ConocoPhillips sold off oil-sands assets. And capital spending in the oil sands fell for five straight years.

On the Teck Frontier mine: stumbling in the shifting sands

  On the Teck Frontier mine: stumbling in the shifting sands The days of rubber stamping projects are gone. Enter the days of having no idea what the conditions for approval even are.Reading the letter in which Teck Resources CEO Don Lindsay bids adieu to the Frontier oil sands mine project, it’s easy to imagine him getting a little wistful for the good old days as he (and team) wrote it. And not just the days of US$85 per barrel oil that existed when the company first applied for approval, levels that would make the mine far more economically viable than today’s $50-ish price.

But this new experiment may just settle the matter once and for all. To most who are au fait with the concepts of how organisms are changed over time from environmental pressures and genetics this is no real surprise, but what is interesting is the angle they took to confirm it.

Oil sands mining operations are conducted on a massive scale. Similarly, this photograph shows an aerial view of Syncrude Aurora tar sands mine in the In short, this attempt to portray oil sands as an energy source much more environmentally-friendly than (batteries derived from) lithium mines used a

The situation came to a head in late 2018, when a wave of new production, the shortage of pipeline space and a heavier-than-normal refinery maintenance season in the U.S. combined to cause a crash in Canadian heavy crude prices. That prompted Alberta’s government to implement mandatory production limits that started in 2019 and may remain in effect for the rest of this year.

a close up of a black background: Crude prices have never fully recovered from the 2014 crash © Bloomberg Crude prices have never fully recovered from the 2014 crash

Teck Chief Executive Officer Don Lindsay, in a letter explaining the company’s decision on Frontier, acknowledged that the project raised broader questions over climate change and how countries’ regulatory regimes should balance resource development and emissions reductions.

“The growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved,” Lindsay said. “In that context, it is now evident that there is no constructive path forward for the project.”

But the hard economic reality remains the potentially biggest hurdle. Frontier’s 2011 application relied on long-term oil prices over its four-decade life of about $95 a barrel, a level global benchmarks haven’t seen since 2014. With both West Texas Intermediate and Brent crude prices in the $50-a-barrel range and the U.S.’s Permian Basin continuing to pump more oil, those prices may not return anytime soon.

Now that Teck Frontier is dead, is there a future for Canada's oilsands?

  Now that Teck Frontier is dead, is there a future for Canada's oilsands? Alberta's oilpatch was dealt another devastating blow this week with Teck Resources' decision to pull the plug on its Frontier project — a move that has some analysts wondering whether the sector has a future in the long term.Beyond Teck, all the major oilsands players have cancelled projects, indefinitely delayed final decisions or dramatically scaled back investments in recent months.

“This was the last big oil sands mining project advancing in the oil sands,” said Kevin Birn, IHS Markit’s director of North American crude oil markets. “Fully new greenfield ones outside this one, I don’t think there is any.”

Analysts had generally positive reactions to Teck canceling Frontier. Morgan Stanley analyst Carlos De Alba said that despite the C$1.13 billion writedown Teck would take on the project, “it removes overhanging concerns about the company potentially making a significant investment in fossil fuel amid raising ESG focus.”

To be sure, the oil-sands industry is far from shutting down. Major producers are generally profitable and producing free cash flow. Capital spending is even projected to tick up this year. Producers are continually developing new technologies and finding ways to cut costs.

They can still expand existing mines and are able to add output from what are known as in situ projects, which resemble more familiar methods of oil extraction by tapping underground resources through the use of wells. Those tend to be smaller, cheaper and faster to build.

But even those projects are having trouble in the current environment. Imperial Oil Ltd. last year delayed its C$2.6 billion Aspen oil-sands project, which had been approved and was scheduled to start production in 2022, because of Alberta’s production limits.

And with the cancellation of Frontier, there are no major mine projects of the kind that formed the industry’s bedrock. The last big mine to come online was Suncor Energy Inc.’s C$17 billion Fort Hills mine, which started producing in 2018.

Teck is a partner at Fort Hills and is considering getting out of that investment, too.

--With assistance from Aoyon Ashraf.

To contact the reporters on this story: Kevin Orland in Calgary at korland@bloomberg.net;Robert Tuttle in Calgary at rtuttle@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, ;Derek Decloet at ddecloet@bloomberg.net, Carlos Caminada

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Coal miner Teck baffled by fish collapse downstream of British Columbia mines .
Teck Resources says it's baffled over the virtual disappearance of a rare fish from a lengthy stretch of a long-contaminated river downstream from the company's coal-mining operations in southeastern British Columbia. A recent survey of cutthroat trout, a species of special concern, in the Fording River immediately downstream from the mines found numbers of the prized game fish have unexpectedly collapsed. Stretches of river that teemed with hundreds of adults and juveniles were empty of fish two years later.

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