Oil Investments Are Dropping
Shell Canada Ltd. says it's pulling its regulatory application for the proposed Pierre River oilsands project north of Fort McMurray, Alta., in order to focus on existing operations.
The move is the latest blow to the oilsands as companies look to cut costs and capital spending plans following the drop in oil prices.
Shell says that given the preliminary nature of the Pierre River project it expected the impact on jobs would be limited.
The Pierre River application proposed a 200,000 barrel-per-day heavy oil mine.
The company says it already has existing regulatory approval to potentially more than double its oilsands production from the current level of 255,000 bpd.
Shell said Pierre River remains a very long term opportunity and noted that the company will continue to hold the leases and can reapply for regulatory approval.