“Global Cos. Wave The White Flag On Canadian Oil Sands”
The recent flurry of Canadian oil sands asset sales is the latest sign that the region’s development costs are too rich for international oil companies amid stubbornly low oil prices and cheaper opportunities in U.S. shale regions, leaving it mainly up to Canadian companies to keep the development going, experts say.
“The capex requirements are so much different,” said Andy Derman, a former oil company executive who leads Thompson & Knight LLP’s international energy practice group. “Making an investment in the U.S., your revenue stream is so much faster than almost any other place on the planet, so the risk profile is very different.”