By OGJ editors
HOUSTON, Jan. 18 -- Alberta oil sands developments are accelerating in response to high crude oil prices and raising issues for producers, points out Purvin & Gertz Inc. in a report entitled Global Markets for Canadian Oil Sands Crudes.
Announced projects with spending totaling $100 billion (Can.) could triple the supply of bitumen and synthetic crude oil within 10 years, said the report, released from the Calgary office of Purvin & Gertz.
One issue for producers is the need for diluent, which increases in step with bitumen production, Purvin & Gertz said. Upgrading in Alberta could reduce diluent demand, but upgrading requires major capital investment and does not eliminate risks associated with marketing synthetic crude.
And limits on the abilities of traditional refineries to absorb growing volumes of synthetic crude has increased interest in access to new markets, including refining centers on the US Gulf Coast and in California and Northeast Asia.
Price volatility is likely to continue due to the unique characteristics of oil sands crudes and imbalances between residue supply and demand, the report said.
