Just weeks ago we observed the near implosion of a planned refinery in Canada's Newfoundland and Labrador province. That aspiring refiner has fended off its creditors for the time being, and is now off passing the hat in the Middle East and Asia.
Meanwhile, a company with no shortage of financial clout has pulled the plug on its own Canadian refinery plans.
Royal Dutch Shell's
Last week, Shell announced that it's not proceeding with the project. The company cited "the current project execution environment, market conditions and the current inflationary pressures across the oil and gas industry" as points of consideration.
Project execution and inflationary issues go pretty much hand in hand. Material and labor shortages are jacking up costs, and making on-time project completion a major challenge. Those delays make projects even more expensive.
The only other Canada refinery plan that I'm aware of -- a joint undertaking by Irving Oil and BP
What's looking much more likely is that integrated oil companies active in Alberta and independent refiners alike will follow the lead of BP and Marathon Oil
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