Suncor revives Firebag oil sands expansion

By OGJ editors
HOUSTON, Nov. 13
-- Suncor Energy Inc. will resume investment in the 50%-complete third stage of its Firebag in situ development in the oil sands of Alberta.

The company has approved capital spending of $5.5 billion (Can.) in 2010, including $900 million for the next step in Firebag expansion and $50 million for the fourth stage. With other projects, the “growth capital” part of Suncor’s investment plans for next year totals $1.5 billion.

The company suspended work on the Firebag third stage early this year, along with plans for expanded upgrading capacity for its mining operations. Resumption of the upgrading investment is not part of the 2010 capital budget.

Noting “some improvement” in crude prices and the overall economy, Suncor Pres. and Chief Executive Officer Rick George called the budget “a conservative capital strategy” that Suncor can support from free cash flow at “midcycle” crude prices.

The third and fourth Firebag stages are to have production capacities of 68,000 b/d each from steam-assisted gravity drainage. Production from the third stage is to start in the second quarter of 2011 and from the fourth stage in the fourth quarter of 2012.

Total production from the first two stages, which started up in 2004 and 2006, averaged 54.3 million b/d in July-September.

Production from those stages is recoverying from cap of 42,000 b/d imposed in 2007 by Alberta regulators in response to excessive sulfur emissions from the Firebag operation. The cap was lifted in the third quarter of 2008.

Suncor is completing a sulfur plant, expected to cost $400 million, able to handle emissions from all six planned Firebag stages.

Related Articles

Pennsylvania governor asks Obama for stronger crude-by-rail rules

03/02/2015 Noting that 60-70 trains/week carry Bakken crude oil across Pennsylvania to the Philadelphia area or other East Coast refineries, Gov. Tom Wolf (D)...

LetterOne completes purchase of RWE Dea for €5.1 billion

03/02/2015 Russian investment firm LetterOne Group and Germany’s RWE AG have completed LetterOne’s acquisition of RWE Dea for an enterprise value of €5.1 bill...

Chevron wins again in Ecuador case as moneyman recants

03/02/2015 With another triumph in its long battle against litigious gold-digging involving Ecuador, Chevron Corp. again demonstrates the goodness of corporat...

New regulator lists UKCS 'priority actions'

03/02/2015 The UK's Oil and Gas Authority (OGA), responding to calls from industry and the government for prompt support of UK Continental Shelf exploration a...

Method improves high-pressure settle-out calculations

03/02/2015 Settle-out calculations in natural gas systems need to be sufficiently rigorous accurately to predict settle-out under various operating conditions...

New analytics, modeling improve subsalt drilling safety

03/02/2015 Analytical models driven by advanced computing capacity and by numerical and physical models improve safety while drilling ultradeepwater subsalt b...

Mexico's energy reform: A sobriety check

03/02/2015

The Mexican energy reform of 2014 encompasses all links in the oil, gas, and power value chains.

EOG Resources' budget down 40% to $4.9-5.1 billion

03/02/2015 EOG Resources Inc., Houston, plans a capital budget of $4.9-5.1 billion in 2015 including production facilities and midstream expenditures, represe...

BHI: US rig count continues to tumble, falls 43 units to 1,267

02/27/2015 The US drilling rig count declined 43 units—down from losses of 48 last week and 98 the previous week—to settle at 1,267 rigs working during the we...
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

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


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

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