Statoil may pick east coast over Alberta oil sands for new expansions

|By:, SA News Editor

Statoil (STO) is weighing new expansions in Alberta's oil sands against the price tag of developing a trove of newly discovered crude oil on Canada's Atlantic coast, the head of its Canadian arm says.

Growth in Alberta potentially could take a back seat to offshore development on the east coast, where STO this year made a 600M barrel discovery at its Bay du Nord prospect.

STO's caution in the oil sands mirrors more conservative strategies unveiled recently by others such as Cenovus (CVE) and Suncor (SU); with uncertainty over pipelines, companies are eschewing large budgets and seeking to better align cash flow with expenses.