Oilsands, deepwater among riskiest energy projects in the world: report
A tailings pond at the Syncrude oilsands facility is seen from a helicopter near Fort McMurray, Alta., July 10, 2012. /(eff McIntosh / THE CANADIAN PRESS)
The Alberta oilsands are seen in this file photo. (Jeff McIntosh / THE CANADIAN PRESS)
The Canadian Press
Published Friday, August 15, 2014 2:01PM EDT
Last Updated Saturday, August 16, 2014 4:19PM EDT
CALGARY -- A new report says some of the world's costliest energy projects are in Alberta's oilsands and many could be cancelled without higher oil prices.
The study by the Carbon Tracker Initiative highlighted 20 of the biggest projects around the world that need a minimum oil price of US$95 per barrel to be economically viable.
Most on the list require prices well north of US$110 per barrel and a few in the oilsands even need prices higher than US$150.
Oilsands players flagged as having some of the most economically risky projects include global majors such as ConocoPhillips, Royal Dutch Shell and ExxonMobil.
Other pricey projects highlighted in the report were in deepwater or ultra deepwater off West Africa and Brazil, as well as in the Arctic.
In total, the 20 projects represent close to $91 billion in capital spending over the next decade; the report's authors say the money would be better spent returning cash to shareholders than invested in risky projects.