STOP: Stop Tar Sands Operations Permanently

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Shell Cancels Tar Sands Refinery

Posted by mhudema on July 10, 2008

Shell cancels Canadian tar sands expansion

July 9, 2008

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An oil giant that planned to refine the same Canadian tar sands as BP Whiting has canceled plans for an expansion in Ontario.

Shell Canada is scrapping a proposed refinery project in Sarnia, which would have turned tar-like crude from oil sands in Alberta, Canada, into refinery-ready light oil, the company announced Tuesday.

The Shell decision won’t have any effect on BP’s plans.

BP Whiting’s modernization will continue to move forward, said BP spokeswoman Sarah Howell. The company is proceeding with the project, which would allow the refinery to process more Canadian tar sands.

“We’ve obviously put a lot of work into the plan and background and we remain confident in it,” Howell said. “We are two different companies. We work differently. We have different criteria. Our company is continuing to move forward. We’re well-aligned with what the current thought is around bringing increased diversity and security and supply of energy sources.”

But Shell’s decision could affect BP Whiting’s ultimate fate, said Denny Larson, executive director of California-based Global Community Monitor, who has helped the Hammond-based Bucket Brigade protest BP Whiting’s modernization. Larson said a firestorm of environmental protests was part of the reason Shell canceled its plans.

“They’re never going to acknowledge that because that would encourage people to do it. I think it’s a watershed event that a project has been canceled. If you noticed what they said, they did say market forces, labor issues, but they’re things that do have an impact on BP and every oil company,” Larson said.

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