Oil sands operators seek project permits

By OGJ editors
HOUSTON, Mar. 30 -- Despite a slowdown in activity in Alberta's oil sands, operators this month have taken early regulatory steps toward several future projects.

In response to slumping crude oil prices, companies recently have delayed or shelved plans to expand production or build bitumen upgraders (OGJ, Mar. 2, 2009, p. 20). But applications filed with Environment Alberta, the province's environmental permitting authority, show continuing long-term interest in expanding output of bitumen and heavy crude. Under the new applications:

• The partnership of Encana Corp. and ConocoPhillips seeks to expand output of its Christina Lake in situ project, 20 km east of Conklin, to 218,800 b/d from 98,800 b/d.

• Athabasca Oil Sands Corp. proposes to produce an initial 50,000 b/d at its MacKay River steam-assisted gravity drainage (SAGD) project 28 km west of Fort McMurray, with expansion possible to 150,000 b/d.

• Connacher Oil & Gas Ltd. seeks permission for its Great Divide SAGD expansion project, which encompasses two Great Divide projects: Pod One near Mariana Lake and the nearby Algar. Pod One went on stream in September 2007 and is ramping up to its initial capacity of 10,000 b/d. Algar, with equivalent initial capacity, isn't yet producing. The expansion project would raise combined capacities to 44,000 b/d.

• OSUM Oil Sands Corp. proposes to use SAGD and cyclic steam stimulation to develop 35,000 b/d of production capacity at its Taiga project 20 km north of Cold Lake.

Also in March, Alberta Energy reached agreement with Fort Hills Energy Corp. under which the partnership, led by Petro-Canada, committed to increasing upgrading capacity in Alberta in exchange for extension to July 31, 2019, of its leasehold in two oil sands mining areas 90 km north of Fort McMurray.

Fort Hills sought a lease extension last year when it temporarily suspended a decision on funding of its integrated mining and Sturgeon County upgrader project.

Under the new agreement, the partnership must add upgrading capacity in Alberta or upgrade in Alberta bitumen produced from its second-phase mine. If it fails to do so, it must reimburse Alberta as much as $500 million.

It may build its own upgrader or invest in or secure access to new or underutilized upgrading capacity owned by others in Alberta.

The project's initial capacity is 140,000 b/d of synthetic crude, with expansion to as much as 280,000 b/d.

Related Articles

API: February US petroleum demand is highest since 2008

03/20/2015 Total US petroleum demand reached an average 19.3 million b/d in February—the highest level for the month since 2008, the American Petroleum Instit...

BHI: US rig count plunges in 15th straight week, spurred by offshore dropoff

03/20/2015 The US drilling rig count fell 56 units—41 of which targeted oil—to settle at 1,069 rigs working during the week ended Mar. 20, capping off the 15t...

DOI issues final rule for fracing on public, tribal lands

03/20/2015 The US Department of the Interior issued a long-anticipated final rule to govern hydraulic fracturing of onshore oil and gas wells on public and tr...

Counties, associations challenge DOI’s Greater Sage Grouse tactics

03/20/2015 A coalition of national and regional oil, gas, coal, and mining associations and county governments in four Rocky Mountain states charged three US ...

Senate crude exports hearing raises price, logistics, safety issues

03/19/2015 Potential consumer price impacts dominated a US Senate Energy and Natural Resources Committee hearing examining whether to allow more exports of do...

Transocean reports plans to scrap four rigs, stack four more

03/19/2015

Transocean Ltd. plans to scrap four of its offshore drilling rigs and stack four others, according to its latest fleet status update.

UK budget includes oil and gas tax relief

03/18/2015

The UK government has delivered on promises made late last year to ease the tax burden on the struggling offshore oil and gas industry.

SPE/IADC: Collaboration, innovation must transcend oil price

03/18/2015 Leaders from oil and gas operators and drilling contractors were empanelled Mar. 17 at the 2015 SPE/IADC Drilling Conference & Exposition to ta...

Knarr field oil flow starts offshore Norway

03/18/2015

Production has begun at deepwater Knarr oil field in the Norwegian North Sea.

White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected