Canadian Natural Delays Growth Projects Amid Pipeline Uncertainty

Canadian Natural Resources Ltd., one of Canada's largest oil producers, reported its most profitable quarter ever, but is holding off on growth projects until a deal is finalized to build a new pipeline to the West Coast. The company earned $4.5 billion in the second quarter and produced more oil than in any previous quarter.

The delay is due to uncertainty over the terms of the project, which will require a binding agreement between Ottawa, Alberta, and other oilsands companies. Canadian Natural has four major projects on hold, worth roughly 340,000 barrels per day.

Industry analysts point out that Enbridge Inc. also put off part of its Mainline pipeline expansion last week, citing producers' reluctance to commit barrels before the agreements are in place.