Royal Dutch Shell is to take a $2bn writedown after cancelling its Carmon Creek project in the oil sands of western Canada, saying the decision was partly a result of a shortage of pipeline capacity in the region. It will also write off 418m barrels of oil from its reported proved reserves, about 3 per cent of its worldwide total at the end of last year. New projects in the oil sands are among the world’s most expensive sources of crude, and the region has been hit hard by the slump in prices that began in the summer of 2014. Companies announced 16 delays or cancellations of oil sands projects between January and July this year, according to Peter Tertzakian of ARC Financial.