RE: RE: Have a look at thisCINDY__You well know that the Enbridge oil pipeline to the coast isn't going to use ABM/AMI gravel.
And here is a long list of major tar sand players that WON'T be buyling any gravel.
Hard cold facts and harsh economic realities can be such a bummer for someone like you with your very dark rose coloured glasses eh?
Oh, and DON'T make the mistake to overlook BIRCH MOUNTAIN which will be competing VERY aggressively for ALL of the same Ft. Mac aggregates business that ABM/AMI will be trying to sell into!
Sure make it real tough for you to pump ABM anymore on the backs of the so called huge tar sand demand?
Hey, why don't you go to the ABM shareholder meeting where I am sure you will get all the feel good, soothing rose coloured messages from management__LOL!!!!!!!
Fort Hills oilsands partners delay mine decision, shelve upgrader
Mon Nov 17, 9:42 AM
The Canadian Press
By The Canadian Press
CALGARY - The partners in the $24 billion Fort Hills oilsands project in northern Alberta have put off an investment decision on building an oilsands mine, likely until next year, and indefinitely shelved the project's proposed upgrading refinery.
The move by the Fort Hills Energy Limited Partnership, announced Monday, reflects lower oil prices, rising costs and weaker credit markets that make it harder to raise money for the project.
The partners - Petro-Canada (TSX: PCA.TO) with 60 per cent and mining giant Teck Cominco Ltd. (TSX: TCK-B.TO) and UTS Energy Corp. (TSX: UTS.TO) with 20 per cent each - said the decision on the oilsands mine near Fort McMurray, Alta., will be deferred "until a cost estimate consistent with the current market environment can be established."
"Given cost pressures, lower crude oil prices and uncertainty in the financial markets, it's important to scale our efforts to focus on the mine first," said Ron Brenneman, president and chief executive of Petro-Canada, one of the country's largest oil companies.
"We're giving ourselves some breathing room on the project schedule, so we can take advantage of a softening market to reduce costs."
The partnership, which previously said it would decide on the mine by the end of this year, "now anticipates making a final investment decision in 2009."
The proposed Sturgeon refinery upgrader near Edmonton, which would convert the oilsands bitumen into usable crude oil, "will be put on hold and a decision on whether to proceed with the upgrader will be made at a later date."
The project is the latest delay or scaleback of oilsands developments in Alberta in recent months.
Last month, Royal Dutch Shell PLC (NYSE: RDS-A) put expansion plans for its Athabasca oilsands project north of Fort McMurray on hold.
Shell is already going ahead with an initial expansion of Athabasca, raising its output from 155,000 barrels a day to more than 250,000 barrels by the end of next year.
More expansions had been planned with the goal of producing 500,000 barrels a day, but the company said the uncertain economic environment and credit crunch has forced it to delay the planned expansion.
The Athabasca project is 60 per cent owned by Shell, with Chevron Canada Ltd. and Marathon Oil Canada Corp. each holding 20 per cent.
Other Canadian oilsands players have also been scaling back their plans recently.
Suncor Energy Inc. (TSX: SU.TO), Canada's second largest oilsands operator, reduced its planned 2009 capital spending by more than a third to $6 billion.
Construction of an upgrader for its nearly $21-billion Voyageur oilsands expansion has been pushed back by at least a year and future phases of its steam-assisted gravity drainage Firebag oilsands project could be deferred as well.
Nexen Inc. (TSX: NXY.TO) and its partner Opti Canada (TSX: OPC.TO) have also delayed a decision on expanding their 50-50 Long Lake oilsands operation in northern Alberta because the credit crunch made it harder to raise capital.
Additionally, privately held Value Creation Inc. has halted construction on its Heartland upgrader near Edmonton.
Analysts say many oilsands projects on the drawing board need oil prices of at least US$80 per barrel to be viable.
Crude fell below US$56 a barrel Monday as news that Japan fell into recession highlighted investor fears that a global economic slowdown will hurt crude demand.
In addition to the low oil prices, high costs of steel, labour and construction materials have also hurt the economics of the oilsands projects.
In the Fort Hills development, project partner Teck Cominco also faces unrelated financial hurdles in repaying a huge debt incurred in its US$14 billion takeover of Fording Canadian Coal Trust (TSX: FDG-UN.TO), Canada's larest producer and exporters of metallurgical coal.
Teck shares have dropped sharply in the last week over investor concerns about the company's finances, especially since it has been squeezed by lower prices for zinc and copper, its key metals.
In early trading Monday, Petro-Canada shares fell 22 cents to $25.56. Teck-Cominco dropped three cents to $6.32, while UTS fell seven cents to 84 cents.