Oil sands project inventory

Feb. 7, 2011
Although much maligned by some as dirty oil, projects are moving ahead in Alberta to recover the billions of barrels of bitumen contained in the oil sands found in the Athabasca, Peace River, and Cold Lake regions.

Guntis Moritis
Production Editor

Although much maligned by some as dirty oil, projects are moving ahead in Alberta to recover the billions of barrels of bitumen contained in the oil sands found in the Athabasca, Peace River, and Cold Lake regions.

In its December 2010 inventory of major oil sands projects, the Alberta government lists 55 projects in various proposal or construction stages that have an estimated capital cost of more than $100 billion (Can.).

Bitumen production from the oil sands already is more than 1.5 million b/d and with these projects as well as others, Alberta's Energy Resources Conservation Board in a June 2010 report estimated that bitumen production may reach 3.2 million b/d in 2019.

In the report, ERCB said the oil sands contain an estimated 1,804 billion bbl in place of which it called 170 billion bbl as remaining established producible and 315 billion bbl as the ultimate recoverable potential.

Companies have produced more than 7 billion bbl to date.

Upgraders, mines

On the Alberta list, the projects with the highest capital costs are the bitumen mines and the upgraders for converting the produced bitumen to synthetic oil for use as a refinery feedstock.

The single project with highest estimated cost is the proposed $11.6 billion (Can.) Suncor Energy Inc. and Total SA Voyageur third upgrader. Construction is scheduled for 2011-16.

Another upgrader project is the $4 billion (Can.) Canadian Natural Resources Ltd. and North West Upgrading Inc. upgrader proposed for construction in 2011-13. One proposed feed for this upgrader is Alberta's royalty-in-kind bitumen.

Syncrude Canada Ltd. also has a planned $2.3 billion (Can.) Phase 4 upgrader expansion and Phase 2 of the Aurora South mine trains in a preengineering study.

The mining projects on the list include CNRL's $1 billion (Can.) Horizon Phase 2 and 3; the proposed $9 billion (Can.) Fort Hills Energy Corp. (Suncor, Total, and Teak Cominco) mine; the $8 billion (Can.) Imperial Oil Resources and ExxonMobil Canada Kearl River Phase 1 mine, which is currently under construction with completion expected in 2012; the $6 billion (Can.) Total and Suncor Joslyn North mine; and the proposed SilverBirch Energy Corp. $2.5 billion (Can.) Equinox and $6 billion Frontier Phase 1 mines.

Listed on hold pending market condition is the $4.4 billion (Can.) Suncor Voyager South and $0.4 billion North Steepbank mine extension.

In situ

Steam-assisted gravity drainage (SAGD) projects dominate the in situ projects on the list although some in situ projects will involve cyclic steam injection, combustion, and solvent injection.

The $3.4 billion (Can.) Shell Canada Ltd. Carmon Creek project in the Peace River region will cycle steam in vertical wells and involve the construction of the two central processing facilities and three cogeneration units. Construction is proposed for 2011-16.

Another cyclic steam project is the $1.3 billion (Can.) Imperial Oil Ltd. Nabiye in the Cold Lake region, with a planned 2015 start.

The $250 million (Can.) Larcina Energy Ltd. Germain commercial demonstration project will involve a solvent and a cyclic steam process. The project is proposed for construction in 2011-12, pending approvals.

Under way is the front-end engineering for the $250 million (Can.) Petrobank Energy and Resources Ltd. May River Phase 1 toe to heel air injection project.

Some of the SAGD projects on the list include the $3 billion (Can.) Cenovus Energy Inc. Christina Lake Phases 1E, 1F, and 1G, proposed for construction in 2011-16; the $2 billion (Can.) ConocoPhillips Canada and Total Surmont Phase 2, which is under construction; the $1.2 billion Japan Canada Oil Sands Ltd. and Nexen Inc. Hanginstone, proposed for 2011-14; the $1.4 billion (Can.) MEG Energy Corp. in situ oil sands Phase 2; the $1.57 billion (Can.) Osum Oil Sands Corp. Taiga, proposed for 2011-18; and the $4.4 billion (Can.) Husky Energy Inc. and BP PLC Sunrise Phases 1 and 2.

Sunrise Phase 1 construction is scheduled for 2010-14 while Phase 2 is on hold pending a cost review and project optimization. Also on hold pending financing is the $3.5 billion (Can.) BP and Value Creation Inc. Terre de Grace SAGD project.

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