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My Oil Sands Budget Runneth Over

Toby Shute
September 17, 2008

Although the consumer price index moderated last month, not all industries are out of the inflationary woods. Exhibit A has to be the Canadian oil sands, which is experiencing tightness in everything from giant tires to capable workers. With around $100 billion in current or planned industry spending, there isn't much room for a letup in costs.

The cost crunch, combined with cascading crude prices, is causing some casualties. On Tuesday, the Fort Hills Energy partnership -- comprising operator Petro-Canada (NYSE: