Shell Scales Back Costly Oil Sands Projects

Royal Dutch Shell's Chief Executive Peter Voser said in Monday's Financial Times that the company will scale down on its costly Canadian tar-sand ventures to focus more of its capex on conventional oil and gas reserves for future growth.

The head of Shell confirmed Monday that plans to boost tar-sands production to 700,000 barrels per day will be reduced. However, Shell more than likely will not shelve oil sands development altogether as some 20 billion barrels of reserves in the region still represent a significant portion of the oil major's total resource base.