Once the deal closes, Shell's only involvement in Canada's oil sands will be through its 10% stake in the Athabasca Oil Sands Project, majority owned by CNR and Chevron.
Royal Dutch Shell Mining News
Transaction could become one of the country’s one of the biggest-ever equity sales.
Once the deals close, there will be only three major companies — CNRL, Suncor and ExxonMobil majority-owned Imperial Oil Ltd. — dominating Canada's oil sands industry.
Meanwhile, the country’s overall oil production is expected to reach 5.3 million barrels a day by 2030, which is 1.1 million barrels per day lower than last year's expectations.
Some of the world's top oil producers have decided to abandon coal and focus instead on ramping up production and trading of liquified natural gas as a cleaner fossil fuel alternative.
Current operational costs for producers have reached $37 to $40 per barrel. Benchmark U.S. crude, meanwhile, is trading at around $50 a barrel.
Royal Dutch Shell Plc is shelving plans to build a new oil sands mine in northern Alberta, the largest such project to be deferred as producers struggle with low energy prices.
The EU new plan changes how refiners label the carbon intensity of their fuel.
Producers’ limited export pipeline capacity coupled with the end of the U.S. summer driving season has tend to lead to oil surpluses, sending prices down. .. Not this year.
Improved heavy oil pricing means these producers are enjoying significantly bigger netbacks.