Oil Sands

Surprising to many, Canada is the No. 1 oil exporter to the United States. Increasingly, these supplies come from Canada’s oil sands in northern Alberta. That province’s estimated oil sands deposits are in excess of 1.7 trillion barrels of crude bitumen. More than $91 billion has been invested in the oil sands in recent years and over $170 billion in oil sands-related projects. Venezuela and California are also heavy oil producers.

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Canadian Oil Sands
Canadian Oil Sands

Oil Sands News

CONVENTIONAL SUPPLY OF OIL WILL SLOW DOWN

Feb 5, 1990 Roger R. Alahakkone Srolank Investment & Trading International Calgary In Canada, Alberta and Saskatchewan account for all of heavy oils and tar sands deposits, while the Orinoco belt in Venezuela represents that country's major deposits. In recent years as conventional oil supplies decline, more and more attention is diverted to heavy oils and tar sands. in western Canada, the major deposits of Cold Lake, Athabasca, Wabasca and Peace River, together are estimated to hold 967 billion

1990 SEEN AS TURNAROUND YEAR IN CANADA

Feb 5, 1990 Canadian officials believe 1990 will mark the beginning of an upturn for their industry. Industry groups say operators are budgeting for an average crude oil price of $18.50 (U.S.)/bbl. Natural gas sales will remain strong, although prices will be weak and there will be inadequate pipeline capacity for gas exports to the U.S. Average gas prices are expected to increase by 50 to $1.65/Mcf as a result of tighter North American supplies. The Canadian Petroleum Association and Independent Petroleum

HORIZONTAL DRILLING SCORES MORE SUCCESSES

Feb 26, 1990 Guntis Moritis Drilling/Production Editor The Journal's second exclusive compilation of horizontal drilling projects under scores that this technology is receiving worldwide acceptance, and the number of wells drilled continues to accelerate rapidly. The following pages document many of the wells drilled in 1989 and the 1990 plans of operating companies.

OTTAWA TO SELL PETRO-CANADA TO CUT DEFICIT

Feb 26, 1990 The Canadian government will sell Petro-Canada Inc. as part of a deficit reduction program. In a federal budget unveiled Feb. 20, Finance Minister Michael Wilson said Ottawa also will cancel federal financial support for the $4.1 billion OSLO oil sands development project in northern Alberta and an exploration incentives program. Ottawa has been considering sale of Petro-Canada for some time as part of a program to privatize government owned companies. The integrated oil company has an

OTTAWA OUTLINES PLAN FOR PETRO-CANADA SALE

Mar 5, 1990 Sale of Petro-Canada, Canada's national oil company, will begin with a 15% offering to Canadian investors. Federal Privatization Minister John McDermid said the offering will be the first of several designed to put the company entirely in private ownership. He gave no date for the first sale. The government disclosed in a Feb. 20 budget it will privatize the 14 year old Calgary company, which has a book value of about $4.2 billion. Terms of the sale will keep any single investor from

RELATED FUELS-WORLDWIDE CONSTRUCTION

Apr 16, 1990 *Designates projects listed for the first time in the Journal. AMCOAL (MW Kellogg and Bechtel development). Quemahoning Indus. Park, Johnstown, Somerset County, Pa. Coal gasification plant processing 485 t/d high sulfur coal. When completed the plant will generate 60 mg electricity. Completion: 1991. *MANITOWOC, WIS., PUBLIC UTILITIES. 200,000 lb/hr bituminous coal and petroleum coke fired circulating fluidized bed steam generator. Contr: Foster Wheeler. $12 MM. Completion: March 1991.

MORE RESTRUCTURING UNDER WAY IN CANADA

May 7, 1990 Restructuring is still very much a way of life in the Canadian industry. Among the latest action: Shell Canada Ltd. will sell some service stations and lay off an undisclosed number of personnel as part of a rationalization of downstream operations. Gulf Canada Resources Ltd. will review nonproducing and underproducing assets as part of a restructuring program. BP Canada Inc. plans to sell leases involving about 15% of its gas reserves and 10% of its crude oil and gas liquids reserves.

DESIGN BASIS DEVELOPED FOR H2 PIPELINE

May 28, 1990 M. Mohitpour Novacorp International Consulting Inc. C.L. Pierce Novalta Resources Inc. Calgary Peter Graham Novacor Chemicals Ltd. Joffre, Alta. In lieu of uniform codes or standards for hydrogen-gas pipeline design and construction, Novacorp International Consulting Inc., Calgary, developed a design basis and used it in the design, engineering, and construction of a hydrogen-gas cross-country pipeline. The pipeline joined the Alberta Gas Ethylene Co. Ltd. hydrogen purification plant to the

SYNCRUDE EXPANSION COULD BE BACK ON TRACK

Jun 11, 1990 A $4 billion expansion of Syncrude Canada Ltd.'s oil sands plant in northern Alberta could be taken off the shelf in late 1991. Syncrude Pres. Eric Newell says the expansion could be an alternative at that time to the proposed OSLO oil sands plant in the same area. The Canadian government withdrew financial support for OSLO earlier this year. The Syncrude project calls for a 50% expansion of the operation to add 80,000 b/d to production. Design has been completed, and the expansion has

OGJ NEWSLETTER

Jun 25, 1990 Sweeping political and economic forces are battering South America's two biggest state petroleum companies. In addition to being hit by a spreading oil workers' strike (see story, p. 28), Brazil's Petrobras is about to be hit with an audit of its operations. Aepet, the association of Petrobras engineers, has asked Brazil's federal accounting tribunal to audit the state company to determine why it is in a financial crisis.

TEXCAN'S DRILLING RESULTS 'VERY ENCOURAGING

Jul 9, 1990 Early results of Texaco Canada Petroleum Inc.'s western Canada joint venture drilling program with Encor Inc. are "very encouraging," TexCan Pres. Phillip J. Cram has told shareholders. The TexCan-Encor venture drilled 16 wells during first quarter 1990-four oil wells, four gas wells, three dry holes, and five wells undergoing evaluation.

OGJ NEWSLETTER

Jul 9, 1990 A wildcat strike by Norwegian offshore workers that briefly slashed Norway's oil flow by almost 1 million b/d appears to have ended with little effect on oil markets. Decisive action by Phillips in Ekofisk field apparently halted the strike by about 1,000 Norwegian oil workers who defied union and government orders to return to work. The strike, which began July 1, cut Norway's output to 700,000 b/d from 1.67 million b/d and halted gas flow.

INTERNATIONAL BRIEFS

Jul 16, 1990 A CANADIAN DOUBLE HULLED tanker ran aground and punctured its hull without loss of oil between the Detroit River and Lake Erie July 4. The outer hull was pierced when the 330 ft Nancy Gauchier, carrying 31 390 bbl of oil en route to Port Colborne, Ont., from Sarnia, Ont., lost power passing through the Livingstone Channel and ran onto rocks. Owner is Socanav Inc., Montreal. Canadian law requires tankers to be double hulled.

INTERNATIONAL BRIEFS

Aug 6, 1990 BP CANADA INC plans to cut staff by 170 jobs-about 10% of payroll-under a restructuring. Most layoffs will involve cutting management layers at its Calgary headquarters and at Bonneyville, Alta., where BP owns 50% of the Wolf Lake oil sands project. BP said its aggressive exploration program will not be affected by the cuts.

PRICE HIKES, FEARS OF OIL SUPPLY CRISIS TRAIL IRAQ ATTACK ON KUWAIT

Aug 13, 1990 Iraq's blitzkrieg seizure of Kuwait has created chaos in world oil markets. At a time when oil demand was relatively soft and oil stocks brimming worldwide, events following Iraq's Aug. 2 invasion of its neighbor, a former Arab ally, have sent oil futures prices rocketing to levels not seen since before the 1986 oil price collapse.
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