Withdrawal of federal funding has set back a $4 billion oil sands project in Northern Alberta by at least 8 years, says National Energy Board.
Meantime, Chevron Canada Resources Ltd. plans a new oil sands recovery pilot project on a 49,000 acre lease in the Fort McMurray region of northern Alberta.
OSLO SETBACK
An NEB draft study on oil supply said construction of the OSLO oil sands plant is unlikely until 1999.
The 77,000 b/d project by a group led by Esso Canada Resources Ltd. had a targeted construction start in 1991 with completion in 1996.
NEB said the forecast is part of a draft report due for publication in 1991 but noted industry already has been advised. Ottawa withdrew financial support of as much as $1 billion in February.
OSLO spokesmen were unavailable for comment on the forecast.
Canadian Petroleum Association noted Canadian oil sands output is fixed until a new plant comes on stream.
Industry estimates put Canada's crude production decline at about 50,000 b/d/year as a result of depleting conventional oil reserves and delays in exploration and development projects due to unstable prices.
CHEVRON PLANS
Chevron's 5 year project will test a new steam injection process that could lead to a 10,000 b/d bitumen recovery operation.
It has conducted preliminary tests on a heated annulus steam drive at a provincial test facility. It uses steam inside a closed horizontal pipe to heat bitumen. Injected steam in a perforated vertical well is then used to force the oil to a horizontal recovery well. Work is to begin in January at the lease Chevron recently bought from Texaco Canada Inc. for $10 million.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.