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Exxon Delays $1.9 Billion Canada Project Amid Oil-Sands Woes

  • Work on Aspen site slowed amid curtailments, pipeline pinch
  • Market conditions, government actions will affect future plans
Exxon in `Bull's-Eye' as Worst Year Since Reagan Nears End (1)
Photographer: Ty Wright/Bloomberg
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Exxon Mobil Corp. is delaying a C$2.6 billion ($1.9 billion) oil-sands project in Canada by at least a year as the nation’s energy industry grapples with a shortage of pipeline space and government-mandated production cuts.

Exxon’s Canadian subsidiary, Imperial Oil Ltd., had originally planned to bring the 75,000-barrel-a-day Aspen project online in 2022, but is now slowing the pace of development at the site in northern Alberta. Any decision to resume normal activity will depend on future government actions and general market conditions, Imperial said Friday.