Investments in oil sand projects 'increasingly risky'
Companies investing in controversial oil sand projects in Canada are incurring increasing risks because these activities are unlikely to remain profitable in future, Greenpeace warned on Monday. Green groups have long argued these projects are energy-intensive.
Oil sand projects, also called tar sand projects, require a consistently high oil price to be economically viable, says Greenpeace. Downward revisions of oil demand forecasts mean oil prices are unlikely to return to 2008 levels.
Policies to increase energy security and combat climate change are driving down consumption, which means oil demand growth could "remain sluggish beyond economic recovery". "Investors should be aware that the assumptions they made just one year ago could now be well out of date", says Greenpeace.
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