Canadian Resources to halt oil projects

The planned cutbacks at Kirby, Birch Mountain and Gregoire Lake oilsands, represent $7 billion in investment.

Canadian Natural, the largest producer of heavy oil in Alberta said the changes proposed by a government-appointed panel would drive oilsands investment out of Alberta.

They would ultimately result in less production and a reduction in the revenues that flow into provincial coffers as a result of oilsands development, the company said.

Oil and gas royalties account for almost a third of the Alberta government's total revenue.

Planned expansions
The planned halted developments follow those by ConocoPhillips Canada, EnCana Corp. and Talisman Energy Inc who have threatened to dramatically reduce spending in Alberta.

Canadian Natural said it would still proceed with its Horizon oilsands project, the first phase of which is currently under construction.

Planned second and third expansions would also remain economic; however the company said future expansions would likely be cancelled.

Canadian Natural is source the source of about 10 percent of U.S. oil supplies.

It also operates in the North Sea and off Africa's west coast, as well as British Columbia and Saskatchewan.

October 11 2007

Related Links
Canadian Natural Resources Ltd