Caterpillar Inc. (CAT), Suncor Energy Inc. (USA) (SU): Could Canada’s Oil Sands Become “Stranded Assets”?

Two of those projects – the Joslyn and Fort Hills mining ventures – still appear profitable down the line, according to Suncor Energy Inc. (USA) (NYSE:SU)’s CEO Steven Williams. But the company recently decided to pull the plug on the third endeavor, the Voyageur Upgrader project, citing challenging economics and growing competition from U.S. shale oil supplies.

Light at the end of the tunnel?
One major lifesaver for Canadian oil sands projects might be the proposed Keystone XL pipeline, operated by Canadian midstream operator TransCanada Corporation (USA) (NYSE:TRP). The pipeline would transport hundreds of thousands of barrels from Alberta to major U.S. hubs and has been cited by several analysts as the major catalyst that could help narrow the price gap between Western Canadian crude and other North American crude oil benchmarks.

Though Keystone XL could prevent Canadian oil sands operations from becoming “stranded assets”, its construction faces a great deal of opposition from groups including environmentalists, climate change campaigners, and landowners along the line’s proposed route.

The article Could Canada’s Oil Sands Become “Stranded Assets”? originally appeared on Fool.com.

Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Total SA. (ADR).

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