Ottawa could break oil sands’ back: Syncrude

Canada’s government needs to be wary of putting too many demands on Alberta’s oil sands for fear of derailing the runaway success enjoyed over the past decade, one of the sector’s most senior executives says.

Given relatively uncertain times for Alberta’s energy companies — with a provincial royalty review and new emissions legislation on the horizon, all in an environment of higher capital costs — authorities need to exercise regulatory caution, Syncrude Canada Ltd. president Jim Carter said yesterday.
“This is a very expensive business,” he said. “It’s not for the faint of heart, and never has been. It’s important that we don’t forget that a level playing field for royalties allowed the current investment and spending to happen.”

That said, the biggest problem for the oil patch in the future is acquiring the workers to undertake the number of planned oil sands projects, Mr. Carter said. In addition, meeting ever-higher environmental expectations will also be a challenge for companies, he added.

On the positive side, Mr. Carter believes that the industry will continue to make technological breakthroughs that will bring down the costs of producing crude from the oil sands.

Globe and Mail