Shell Withdraws From Largest Tar Sands Project Yet

Keystone XL is not the only deciding factor in the future of tar sands extraction.

The outsized debate over the Keystone XL pipeline, which entered a new era yesterday after Obama wielded his veto pen against legislation approving its construction, is not the only element in the debate over whether the greenhouse gas-intensive tar sands get developed. Oil supply, demand, and cost are pulling some major levers too: with oil prices at rock-bottom lows, on Monday Royal Dutch Shell announced it was shelving plans to build a new tar sands mine in northern Alberta — the largest such project to be deferred.

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