With oil prices at a four-year low, the UK-based Carbon Tracker Initiative warned this week that hundreds of billions of dollars in Canadian tar sands/oil sands investment could be at risk, InsideClimate News reports.
“Shareholders should be concerned at this potential level of expenditure and should consider whether it is prudent to risk such large amounts of capital on high-cost projects that need high oil prices to be commercial,” Carbon Tracker stated. The report said 92% of prospective tar sands/oil sands production will only be viable at a world price of $95 per barrel, and “virtually all” of it is a losing proposition at $75 per barrel.
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At press time, benchmark West Texas Intermediate crude oil was priced at $77.91, while Brent crude was at $82.86.
