Are the tar sands the sub prime investments of the oil biz?

A new report by Greenpeace UK was released internationally today, warning of increasing financial risk for UK oil giants BP and Shell, who have invested heavily in the Alberta tar sands.

The report, co-authored by Greenpeace and PLATFORM and entitled BP and Shell, Rising Risks in Tar Sands Investment, has won the backing of several influential investment firms including Holden and Partners, Innovest, and Co-operative Asset Management. The report claims that shortfalls in the strategic reserves of BP and Shell are leading to a ‘distortion of management perspectives’, resulting in potentially catastrophic underestimates of risk.