The project was estimated to have cost 20.6 billion Canadian dollars, or $15.6 billion.
As a result of this decision Teck will write down the $1.13 billion carrying value of the Frontier Project.
"The only real communications from the feds was trial balloons going up in the media", said one senior Alberta government source, who wasn't authorized to speak publicly about the relationship with the federal government.
Kenney said while the government supports freedom of expression, including protesting, these demonstrations cross a line.
For the Kenney government and nearly anybody interested in oil and gas investment, it was the Sunday night slaughter - sudden news that Teck Resources has cancelled its $20-billion Frontier oilsands mine.
Officially, the Vancouver-based company has withdrawn the massive project from the federal regulatory review process. Oil sands, also known as tar sands, are deposits of heavy crude oil that take more energy to extract than conventional liquid oil deposits and thus have a much higher carbon footprint.
Oil prices continue to swoon, relative to recent history in Alberta, which adds to the problems facing new and existing projects. It would have produced 4 million tonnes of Carbon dioxide annually.
"As Frontier requires increased pipeline capacity, higher oil prices and a significant partner to advance development, Teck was not likely to advance development at the present time".
The group Indigenous Climate Action, however, said the decision is a win for Indigenous rights, sovereignty and the climate.
Today, as approximately a half-century back, resources and buyers are shy about sinking substantial income into the oil sands muck when more cost-effective developments are accessible somewhere else in the earth. Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very hard to attract future investment, either domestic or foreign.
Trudeau's government agreed with Teck Resources' reasoning that "global investors and consumers are increasingly looking for the cleanest products available and sustainable resource development".
"The growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved", Lindsay wrote in his letter.
"Actually over the previous few days, it has change into more and more clear that there is no such thing as a constructive path ahead", Lindsay informed traders in a speech.
Teck Resources Ltd.is pulling its application for a controversial new oil-sands mine in Alberta, freeing Prime Minister Justin Trudeau from a political predicament. Viewed once as a victor, oil sands are now widely viewed as an investment loser.
But marrying issues of resource development, Indigenous land rights and the environment will prove hard for Trudeau, says Nanos.
Major projects including oilsands mines need to be approved by the federal government before they can proceed. By 2025, it projects oil to sell in the US$81 per barrel range and US$93 by 2030.
Jason Kenney says blocking the energy industry will deny First Nations jobs but not reduce oil consumption. "This puts some risk to that forecast".
The province's economy is reliant on fossil fuel production, and Jason Kenney, its premier, is all in on continuing down that path. Teck's decision to withdraw its proposal is another sign that path just doesn't make sense anymore.
"[Teck's] withdrawal of the project is a sound business decision", Tom Sanzillo, director of finance for the Institute for Energy Economics and Financial Analysis, told Earther.
Jonathan Wilkinson, the Canadian minister of environment and climate change, and Seamus O'Regan, the minister of natural resources, put out a joint statement saying that they appreciate that Teck made a hard decision.