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Suncor decision shows that oil shale not viable, says Greenpeace
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Calgary-based Suncor Energy is taking an $80-million writedown at the Stuart Oil Project in Australia, the company announced Sept. 5. The company said it will continue with the demonstration plant but that it is reviewing whether the controversial technology of extracting oil from shale is economically or environmentally sustainable. The project is a demonstration plant to prove the viability of extracting oil from shale. It has encountered operational problems, cost overruns and local opposition because of odors and noise. Suncor CEO Rick George said the company will attempt to resolve these technical difficulties, but he also said that shale oil technology must prove itself to be an environmentally sustainable technology. "We must constantly earn the right to operate and grow our business by demonstrating that economic and social benefits and high standards of environmental performance can be achieved," said George. The company said it will look at the following in order to determine whether oil shale technology is viable over the long term:
The decision comes at a time when Suncor is becoming increasingly recognized as a company committed to sustainable development principles. It was recently recognized by the Task Force on the Churches and Corporate Responsibility as one of only two companies out of eight that scored responsibly in a study on corporate social performance. But the Stuart project has been an operational and environmental headache for the company. Greenpeace said Suncor’s decision reflects growing concerns about oil shale development and climate change caused by greenhouse gas emissions. "Suncor has seen the writing on the wall," said Steven Guilbeault, Greenpeace Canada climate campaigner. "Suncor has recognized that the carbon intensity of this industry is a huge financial liability. Even if Suncor can fix the plant's technological problems, it is never going to be able to reduce the greenhouse intensity of shale oil to an affordable level - financial or environmental. This is a wake-up call to all industry, investors, and regulators.” Greenpeace has been campaigning to stop the development of shale oil, the most greenhouse intensive of all fossil fuels, since 1998. Fore more information on the Stuart Shale Oil project visit http://www.suncor.com/we_care/gcc.htm.For information on Suncor and the TCCR study visit http://www.corporate-benchmarks.com.
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