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Sulfur crunch could limit bitumen output
07/28/2008
Production of bitumen and heavy oil in Alberta faces a constraint unrelated to problems receiving the most attention.The usual worries are water and energy supplies, rising royalty rates, and air-emission regulations.But specialists at the Oil Sands and Heavy Oil Conference in Calgary July 15-17 said a bigger problem might be sulfur.A strong global market that now prices sulfur at a robust $800/tonne will cycle into “extreme oversupply,” according to Bill Kennedy, retired from Shell Canada Ltd.“It’s only a matter of when,” he said.His reasoning: After a period of strong growth, demand for sulfur is leveling. But supply is zooming from bitumen upgraders in nor...
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