Warren Buffett Dumps Oil Sands giant Suncor
Berkshire Hathaway’s third-quarter regulatory filings show that the Warren Buffet-owned firm has abandoned Suncor Energy – a Canadian company that greatly benefitted from the billionaire’s financial show of support in 2013.
Last year, hathaway increased its involvement in Suncor, however recent documents showing the major investment firm’s withdrawal from the oil, gas and minerals company recommend that Canada’s energy sector continues to struggle through the oil worth crisis.
As of september, Suncor, Canada’s largest oil producer, looked to abandon a number of its high-cost and greenhouse-gas intensive oil sands assets, according to ceo Steve Williams.
Suncor dumped the deposits in question in order to ease the effect of rules that were created to maximize the output from oil sands onto land leased from the government.
The cost-cutting plan to abandon the sites aligns with efforts by efforts led by alternative oil companies to cope with low commodity costs and challenging environmental regulations.
in its third major acquisition deal this year, the corporate shifted focus out of Canada’s oil sands by agreeing to shop for a 30-percent stake within the Rosebank oil and gas project within the north sea for an initial consideration of $50 million. If the project – that has reached its final style phase - gets the go-ahead from all participating partners, it'll receive a further $165 million from Suncor, the deal’s contract states.
Late last month, the Canadian National Energy Board lowered its expectations for the oil worth recovery on weekday because of the falling prices of energy production and challenging environmental regulations.
By 2020, the board says that barrel costs can rise to an inflation-adjusted $68, that is $12 but the agency’s previous prediction. The government’s 2040 projection fell by $17 from its january figure of $90.