Big Oil is Retreating from Canada
International oil companies are pulling assets out of Canada ($$$)
International oil companies (ConocoPhillips, Statoil, Shell) are pulling back from their Canadian oil sands investments.
The goal is to save money. The oil sands in Canada have some of the highest operating costs in the world, paired with low profits. Plus, Canadian oil sands have greenhouse-intensive sources of crude oil and have limited pipeline access to markets, which leaves little flexibility for oil companies. Instead, some big oil is seeking out lower-cost and higher-stability operations in the Permian Basin in New Mexico and Texas.— via Axios
This is happening in the larger setting of the Trump administration putting pressure on the Canada-US trade relationship. Ottawa is keen to avoid a costly trade war with the United States (ex. NAFTA renegotiations). Trump last week said Canadian energy was another example of a bad trade deal for the United States, but gave no specifics or evidence. Canadian officials will likely be paying close attention to this in the coming weeks. — via Reuters