Testing times for Alberta's oil sands

摘要

RISING capital costs are threatening the economics of several Alberta oil-sands projects.The cost for a new production facility has reached at least C160,000(148,000)per flowing barrel,compared with industry standards of C100,000 two years ago and C45,000 in the late 1990s.Without factoring in the full effect of the global credit crisis and the unknown costs of carbon-emissions-reduction policies planned by the Canadian government(see plO),the " chances of raising the estimated C170bff of capital required to keep projects on track"over the next decade are evaporating.