"As we know, the oil sands and oil shales of Canada are put forward as one of the reasons why oil isn’t running out, why there is still a century or more of supplies to use. So this doesn’t look good:
However, before the peak oil crowd start crowing about how it shows that the process will never make sense, will never really amount to much, it’s worth looking at what (well, at least what Shell say) is the problem. It isn’t the process itself, isn’t something wrong with the whole idea. It’s simply a result of an overheated market:"
full article
HERE
and also
"SHELL is facing a cost explosion in the expansion of the Athabasca Oil Sands Project, a mining venture that extracts oil from bitumen deposits in the Canadian province of Alberta.
The first phase of expansion, intended to add 100,000 barrels daily to the current 155,000 barrel per day output was budgeted at C$7.3 billion (£3.6 billion) only a year ago. It is now expected to cost as much as C$11 billion, according to estimates published by Western Oil Sands, Shell’s partner in the project.
Shell Canada said yesterday that it was conducting an assurance review of the project’s cost, pending a final investment decision later this year. Planned in three phases, the Athabasca expansion is intended to raise output to 500,000 bpd, and represents a large part of Shell’s oil production ambitions.
Shell admitted to “significant upward pressure on capital costs” but declined to confirm its partner’s prediction of a 50 per cent increase."
more on that
HERE
What's it all mean?
Oil sands will be too expensive to develop having a ngative EROEI?