Shell shifts focus from the oil sands
Shell Canada has shrunk its capital spending budget from $2 billion to about $1.5 billion this year, a savings of $500 million due to its recent divestment of the Athabasca Oil Sands Project (AOSP). Shell still owns 10% of AOSP, now majority-owned (70%) by Canadian Natural Resources.
President Michael Crothers says his company will now focus on its shale oil and gas properties in the Duvernay, its chemicals and refining operations near Edmonton and its proposed LNG Canada project in Kitimat, BC.
Shell is also working on various renewable energy projects in Alberta. The company built and continues to operate Alberta's only carbon capture and storage facility (CSS), located next to the Scotford Upgrader. The $1.35 billion Quest CSS project was mostly funded by Canadian taxpayers through various clean energy programs.
Crothers also says he isn't phased by BC's unstable government but says Shell is in no hurry to make an investment decision on the West Coast LNG export terminal. Four engineering companies are pulling together cost estimates for the facility, which should be completed by the end of this year. Shell has not provided a timeline for a final investment decision.