Rising costs could stall future oilsands growth
Posted Jun 14, 2011 8:29 am.
This article is more than 5 years old.
A number of companies operating in the oilsands are voicing concern about rising material and labour costs and the impact on their business.
Cenovus Energy Inc. also says if the controversial Keystone XL pipeline to the southern United States is not built, they will have to revisit plans to crank up production.
Canadian Natural Resources says if capital costs heat up like they did before the last recession, that would force them to take a break.
Peter Linder with Delta One Capital tells 660News, even if oil is trading above $100 USD, you can’t make a buck if you can’t get your product to market.
Linder says it’s imperative both the Keystone XL Pipeline to the U.S. be built and another pipeline to the west coast be given the green light in a few years time.
He says much of Alberta’s and Canada’s future economic success really does hinge on the future development of the oilsands.
