Diluent availability will constrain Canada's heavy oil, bitumen development

Despite significant proposed investments to develop Canada's heavy oil and bitumen reserves, production will continue to lag developments in Latin America.Besides limitations on labor in the construction trades in Alberta there are constraints on market access, refinery capacity to utilize these heavy crudes, and heavy crude oil transportation capacity.Resources, new facilitiesRecent publicity has documented the substantial heavy oil and bitumen resource potential in Western Canada, and major investments that have been announced (OGJ, June 10, 2002, p. 24; July 15, 2002, p. 27).A report by Canada's National Energy Board (NEB) estimated that Alberta's oil sands may contain ulti...

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