DOCSLIB.ORG

Canada's Energy Future Includes Minor Revisions and an Expanded Appendices

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Canada's Energy Future Includes Minor Revisions and an Expanded Appendices National Energy Office national Board de l’énergie National Energy Office national Board de l’énergie Canada’s Energy Future RefeRence case and scenaRios to 2030 National Energy Office national Board de l’énergie An EnErgy MArkEt AssEssMEnt novEMbEr 2007 National Energy Office national Board de l’énergie Canada’s Energy Future* RefeenergyRence case and scenaRios tofutures 2030 An EnErgy MArkEt AssEssMEnt novEMbEr 2007 * This edition of Canada's Energy Future includes minor revisions and an expanded Appendices. The National Energy Board has issued an Errata for Canada's Energy Future, available on the National Energy Board web site at www.neb-one.gc.ca. Please refer to this Errata for details of significant revisions. The Board apologizes for any inconvenience caused by these changes. Permission to Reproduce Materials may be reproduced for personal, educational and/or non-profit activities, in part or in whole and by any means, without charge or further permission from the National Energy Board, provided that due diligence is exercised in ensuring the accuracy of the information reproduced; that the National Energy Board is identified as the source institution; and that the reproduction is not represented as an official version of the information reproduced, nor as having been made in affiliation with, or with the endorsement of the National Energy Board. For permission to reproduce the information in this publication for commercial redistribution, please e-mail: [email protected] Autorisation de reproduction Le contenu de cette publication peut être reproduit à des fins personnelles, éducatives et(ou) sans but lucratif, en tout ou en partie et par quelque moyen que ce soit, sans frais et sans autre permission de l’Office national de l’énergie, pourvu qu’une diligence raisonnable soit exercée afin d’assurer l’exactitude de l’information reproduite, que l’Office national de l’énergie soit mentionné comme organisme source et que la reproduction ne soit présentée ni comme une version officielle ni comme une copie ayant été faite en collaboration avec l’Office national de l’énergie ou avec son consentement. Pour obtenir l’autorisation de reproduire l’information contenue dans cette publication à des fins commerciales, faire parvenir un courriel à : [email protected] © Her Majesty the Queen in Right of Canada as © Sa Majesté la Reine du chef du Canada représentée par represented by the National Energy Board 2007 l’Office national de l’énergie 2007 Cat. No. NE23-15/2007E Nº de cat. NE23-15/2007F ISBN 978-0-662-46855-4 ISBN 978-0-662-07235-5 This report is published separately in both official Ce rapport est publié séparément dans les deux languages. This publication is available upon request in langues officielles. On peut obtenir cette publication sur multiple formats. supports multiples, sur demande. Copies are available on request from: Demandes d’exemplaires : The Publications Office Bureau des publications National Energy Board Office national de l’énergie 444 Seventh Avenue S.W. 444, Septième Avenue S.-O. Calgary, Alberta, T2P 0X8 Calgary (Alberta) T2P 0X8 E-Mail: [email protected] Courrier électronique : [email protected] Fax: 403-292-5576 Fax : 403-292-5576 Phone: 403-299-3562 Téléphone : 403-299-3562 1-800-899-1265 1-800-899-1265 Internet: www.neb-one.gc.ca Internet : www.neb-one.gc.ca For pick-up at the NEB office: Des exemplaires sont également disponibles à la Library bibliothèque de l’Office : Ground Floor Rez-de-chaussée Printed in Canada Imprimé au Canada TChABAPTElE OF rC ONTENTONE s List of Figures and Tables iii List of Acronyms and Abbreviations vi List of Units viii Executive Summary ix Analytical Overview xiii Overview of Reference Case and Scenarios xiii Overview of Key Assumptions and Quantitative Results xiv Conclusions xxiv Foreword xxvii Chapter 1: Introduction 1 Canada’s Energy Future: The 2007 Approach 2 Scenarios Used in this Report 2 Stakeholder Input 3 Report Structure 3 Chapter 2: Energy Context 4 Price of Energy 4 Global Context 5 Energy and Environmental Policy Developments 7 Demand Response 8 New and Emerging Technologies 8 Infrastructure 9 Energy in the Canadian Economy 10 Energy Exports 11 Canadian Reserves 11 Chapter 3: Reference Case 13 Reference Case Overview (2005-2015) 13 Macroeconomic Outlook 13 Energy Prices 14 Energy Demand 17 Oil Supply 21 Natural Gas Supply 27 Natural Gas Liquids 29 Electricity Supply 30 Coal 34 Greenhouse Gas Emissions 34 Reference Case Issues and Implications 36 National ENErgy Board i Chapter 4: Continuing Trends 37 Scenario Overview (2005-2030) 37 Macroeconomic Outlook 38 Energy Prices 39 Energy Demand 40 Oil Supply 43 Natural Gas Supply 47 Natural Gas Liquids 49 Electricity Supply 50 Coal 52 Greenhouse Gas Emissions 53 Continuing Trends Issues and Implications 55 Chapter 5: Triple E 57 Scenario Overview (2005-2030) 57 Macroeconomic Outlook 59 Energy Prices 60 Energy Demand 61 Oil Supply 71 Natural Gas Supply 76 Natural Gas Liquids 79 Electricity Supply 80 Coal 82 Greenhouse Gas Emissions 83 Triple E Issues and Implications 85 Chapter 6: Fortified Islands 87 Scenario Overview (2005-2030) 87 Macroeconomic Outlook 88 Energy Prices 89 Energy Demand 91 Oil Supply 94 Natural Gas Supply 97 Natural Gas Liquids 100 Electricity Supply 101 Coal 103 Greenhouse Gas Emissions 104 Fortified Islands Issues and Implications 105 Chapter 7: Conclusions: Key Implications for the Canadian Energy System 106 Glossary 112 Conversion Tables 120 Guide to Appendices 122 ii canadA’s energy fuTurE lChist APTEof figurrEs anOdNE tablEs Li s t o f fi g u r e s ES.1 Canadian Total Secondary Energy Demand x ES.2 Canadian GHG Emissions Intensity xi AO.1 Annual Average Growth Rate of Real GDP, Labour Force and Productivity – Reference Case 2004-2015 and Scenarios 2004-2030 xiv AO.2 Annual Average Growth Rate of Goods Producing Sector, Service Sector and Personal Disposable Income – Reference Case 2004-2015 and Scenarios 2004-2030 xv AO.3 Regional Composition of GDP, 2004 and 2030 xvi AO.4 West Texas Intermediate Crude Oil Price at Cushing, Oklahoma xvi AO.5 Natural Gas Price at Henry Hub, Louisiana xvii AO.6 Canadian Total Secondary Energy Demand xvii AO.7 Canadian Crude Oil Production Outlook xviii AO.8 Canadian Light Crude Oil Exports xix AO.9 Canadian Heavy Crude Oil Exports xix AO.10 Canadian Natural Gas Production Outlook xx AO.11 Canadian Natural Gas Net Exports xx AO.12 Electric Generation by Fuel and Scenario xxi AO.13 Canadian Coal Production and Disposition, 2005, 2015 and 2030 xxii AO.14 Canadian Total GHG Emissions xxiii AO.15 Canadian GHG Emissions Intensity xxiii 1.1 NEB Energy Futures Scenarios 2 2.1 Global Production and Consumption of Oil and Gas by Area, 2006 6 2.2 World Primary Energy Consumption by Fuel Type, 2006 6 2.3 Estimated Proved Oil Reserves, 2005 12 3.1 Real GDP Growth Rates – Reference Case 2004-2015 15 3.2 West Texas Intermediate Crude Oil Price at Cushing, Oklahoma – Reference Case 15 3.3 Natural Gas Price at Henry Hub, Louisiana – Reference Case 16 3.4 Canadian Total Secondary Energy Demand Intensity – Reference Case 18 3.5 Canadian Residential Secondary Energy Demand by Fuel – Reference Case 18 3.6 Canadian Commercial Secondary Energy Demand by Fuel – Reference Case 19 3.7 Canadian Industrial Secondary Energy Demand by Fuel – Reference Case 20 3.8 Canadian Transportation Energy Demand by Fuel – Reference Case 21 3.9 Canadian Transportation Energy Demand by Mode – Reference Case 21 3.10 Total Canada Oil Production – Reference Case 22 3.11 WCSB Conventional Oil Production – Reference Case 23 3.12 Eastern Canada Light Crude Production – Reference Case 23 National ENErgy Board iii 3.13 Canadian Oil Sands Production – Reference Case 24 3.14 Supply and Demand Balance, Light Crude Oil – Reference Case 26 3.15 Supply and Demand Balance, Heavy Crude Oil – Reference Case 26 3.16 Natural Gas Production Outlook – Reference Case 27 3.17 Supply and Demand Balance, Natural Gas – Reference Case 29 3.18 Canadian Ethane Supply and Demand Balance – Reference Case 30 3.19 Canadian Generating Capacity – Reference Case 31 3.20 Canadian Generation – Reference Case 31 3.21 Interprovincial Transfers and Net Exports – Reference Case 33 3.22 Canadian Total GHG Emissions by Sector – Reference Case 35 3.23 Canadian Total GHG Intensity – Reference Case 35 4.1 Real GDP Growth Rates – Continuing Trends 2004-2030 38 4.2 West Texas Intermediate Crude Oil Price at Cushing, Oklahoma – Continuing Trends 39 4.3 Natural Gas Price at Henry Hub, Louisiana – Continuing Trends 39 4.4 Canadian Total Secondary Energy Demand by Fuel – Continuing Trends 40 4.5 Canadian Total Secondary Energy Demand Intensity – Continuing Trends 41 4.6 Canadian Residential Secondary Energy Demand by Fuel – Continuing Trends 41 4.7 Canadian Commercial Secondary Energy Demand by Fuel – Continuing Trends 42 4.8 Canadian Industrial Secondary Energy Demand by Fuel – Continuing Trends 42 4.9 Canadian Transportation Energy Demand by Fuel – Continuing Trends 43 4.10 Canadian Transportation Energy Demand by Mode – Continuing Trends 43 4.11 Total Canada Oil Production – Continuing Trends 44 4.12 WCSB Conventional Oil Production – Continuing Trends 44 4.13 Eastern Canada Light Crude Production – Continuing Trends 45 4.14 Canadian Oil Sands Production – Continuing Trends 45 4.15 Supply and Demand Balance, Light Crude Oil – Continuing Trends 47 4.16 Supply and Demand Balance, Heavy Crude Oil – Continuing Trends 47 4.17 Natural Gas Production Outlook – Continuing Trends 48 4.18 Supply and Demand Balance, Natural Gas
Load more

Recommended publications
  • Regulation of Access to Oil Pipelines 777
    REGULATION OF ACCESS TO OIL PIPELINES 777 THE NATIONAL ENERGY BOARD: REGULATION OF ACCESS TO OIL PIPELINES JENNIFER HOCKING* In the past few years, a number of long-distance oil pipelines have been proposed in Canada — Northern Gateway, the Trans Mountain Expansion, Keystone, and the Energy East Project. This article describes the criteria used by the National Energy Board in approving the allocation of capacity in oil pipelines to firm service contracts while requiring that a reasonable percentage of capacity is allocated for uncommitted volumes (common carriage). It explains the economic theory related to regulation of access to major oil pipelines. It reviews and analyzes relevant NEB decisions, which show that the NEB supports well- functioning competitive markets, but will exercise its discretion to resolve complaints where markets are not functioning properly. The article also explains the economic significance of the proposed long-distance oil pipelines to Canada and Alberta despite the current low price of crude oil. The article concludes with recommendations for a written NEB policy regarding access to capacity in oil pipelines. TABLE OF CONTENTS I. SIGNIFICANCE OF PROPOSED OIL PIPELINES TO THE CANADIAN ECONOMY ................................. 778 A. PIPELINES NEEDED DESPITE LOW PRICE OF OIL ............... 780 B. SHIPPING OF OIL BY RAIL ................................ 781 II. OIL PIPELINES AS COMMON CARRIERS ........................... 781 A. THE NATURE OF COMMON CARRIERS ....................... 781 B. COMMON CARRIAGE OBLIGATION SUBJECT TO REASONABLENESS TEST ............................... 783 C. WHY WERE OIL PIPELINES ORIGINALLY DESIGNATED AS COMMON CARRIERS? ................................. 784 III. MAJOR LONG-DISTANCE OIL PIPELINES TODAY ................... 785 A. ENBRIDGE PIPELINES .................................... 786 B. TRANS MOUNTAIN PIPELINE .............................. 787 C. SPECTRA ENERGY EXPRESS-PLATTE .......................
    [Show full text]
  • Energy East Pipeline Project
    WhenEnergy the pipeline East: spills... Previous ruptures along TransCanada’s Mainline – part of the planned Energy East pipeline project. Photos by the Transportation Safety Board of Canada. Cover photos Pipeline Investigation Report P09H0074 Top left: Aerial Photo of the Englehart Occurrence Site, from , Transportation Safety Board of Canada. Available at http://www.tsb. gc.ca/eng/rapports-reports/pipeline/2009/p09h0074/p09h0074.aspPipeline Investigation Report P11H0011 Top right: Downstream line-break section of Line 100-2, from , Transportation Safety Board of Canada. Available at http://www.tsb. gc.ca/eng/rapports-reports/pipeline/2011/p11h0011/p11h0011.aspPipeline Investigation Report P09H0083 Bottom: Aerial photo of the Marten River occurrence site, from , Transportation Safety Board of Canada. Available at http://www.tsb. gc.ca/eng/rapports-reports/pipeline/2009/p09h0083/p09h0083.aspEnergy East: When the pipeline spills... is published under the Creative Commons licence Attribution-NonCommercial- ShareAlike 4.0. Images used within this document remain copyrighted by their respective owners except where specifically indicated. Energy East: When the pipeline spills... TransCanada’s Energy East pipeline project would convertIt would an up be to the40-year-old largest oil natural pipeline gas inpipeline North to America, carry crude oil from Saskatchewan to Ontario, connecting it with new pipeline through Quebec and on to Saint John, New Brunswick. transporting 1.1 million barrelsif of oil every day. when where how much When it comes to pipelines, it is not a matter of a pipeline spills, it is a matter of , and it spills. NL AB SK MB Edmonton Hardisty Regina ON QC PE Winnipeg Thunder Bay Quebec City NB Montreal NS North Bay Saint John Ottawa Selective memory: TransCanada’s safety record.
    [Show full text]
  • The Case of the Canadian Province of Alberta's Oil Sands
    Project Document A sub-national public-private strategic alliance for innovation and export development: the case of the Canadian province of Alberta’s oil sands Annette Hester Leah Lawrence Economic Commission for Latin America and the Caribbean (ECLAC) This background document was prepared by Annette Hester and Leah Lawrence, Consultants of the Division of International Trade and Integration, Economic Commission for Latin America and the Caribbean (ECLAC), within the activities of the study “Public-private alliances for innovation and export upgrading“, coordinated by Robert Devlin and Graciela Moguillansky with the financial support of SEGIB, through the project “Alianzas público-privadas para la Innovación y el Desarrollo Exportador: Casos Exitosos Extraregionales y la Experiencia Latinoamericana”. Some of their preliminary findings were formerly presented at ECLAC, in Structural Change and Productivity Growth 20 Years later: Old Problems, New Opportunities, (LC/G.2367 (SES.32/3)), Santiago de Chile, 2008, chapter VI, pages 231 to 299.. The paper benefited from the support and comments of Inés Bustillo, Clement Bowman, and Eddy Isaacs, as well as the research assistance of Timmy Stuparyk and Michael Bagan. Annette Hester and Leah Lawrence are Calgary-based economists and writers. Ms. Hester is a research fellow with the Centre for International Governance Innovation in Waterloo, Canada and a Senior Associate with the Centre for Strategic and International Studies in Washington, DC. The views expressed in this document, which has been reproduced without formal editing, are those of the author and do not necessarily reflect the views of the Organization. LC/W.292 Copyright © United Nations, April 2010. All rights reserved Printed in Santiago, Chile – United Nations ECLAC – Project Documents collection A sub-national public-private strategic alliance for innovation and export… Contents Abstract……………………..............................................................................................................
    [Show full text]
  • PUBLIC DISCLOSURE DOCUMENT Proposed Development Plan OPTI
    PUBLIC DISCLOSURE DOCUMENT Proposed Development Plan OPTI Canada Inc. & Nexen Inc. Long Lake Phase 2 SAGD Project July 2005 1.0 INTRODUCTION OPTI Canada Inc. and Nexen Inc. (OPTI/Nexen) are proposing to expand our Steam Assisted Gravity Drainage (SAGD) bitumen production at our Long Lake Project. This document has been prepared to inform you about our preliminary plans related to the proposed Long Lake Phase 2 SAGD Project (Phase 2). We encourage and welcome your input on this plan and your participation in the regulatory process. OPTI Canada and Nexen Inc. are joint-venture partners developing the Long Lake Project in the Athabasca oil sands region of northern Alberta. The Long Lake Project (Phase 1) is located on Lease 27, approximately 40 kilometres southeast of Fort McMurray, Alberta. Throughout the life of the Long Lake Project, we are committed to: • Understanding & addressing stakeholder concerns • Enhancing local employment & business development • Investing in communities to build capacity & self-sufficiency • Developing the Project in a safe & environmentally responsible manner Under the Memorandum of Understanding (IL 96-7) between the Alberta Energy and Utilities Board (EUB) and Alberta Environment (AENV) with respect to Oil Sands Developments, OPTI/Nexen will be filing a joint application related to the Long Lake Phase 2 SAGD Project to amend the following approvals: • Environmental Protection and Enhancement Act Approval No. 137467-00-00 • Oil Sands Conservation Act Approval No. 9151 We view the consultation process for the OPTI/Nexen Phase 2 Project as building on an ongoing co-operative approach with stakeholders that addresses such regional issues as fresh water conservation and protection, and air quality management.
    [Show full text]
  • Foreign Investment in the Oil Sands and British Columbia Shale Gas
    Canadian Energy Research Institute Foreign Investment in the Oil Sands and British Columbia Shale Gas Jon Rozhon March 2012 Relevant • Independent • Objective Foreign Investment in the Oil Sands and British Columbia Shale Gas 1 Foreign Investment in the Oil Sands There has been a steady flow of foreign investment into the oil sands industry over the past decade in terms of merger and acquisition (M&A) activity. Out of a total CDN$61.5 billion in M&A’s, approximately half – or CDN$30.3 billion – involved foreign companies taking an ownership stake. These funds were invested in in situ projects, integrated projects, and land leases. As indicated in Figure 1, US and Chinese companies made the most concerted efforts to increase their profile in the oil sands, investing 2/3 of all foreign capital. The US and China both invested in a total of seven different projects. The French company, Total SA, has also spread its capital around several projects (four in total) while Royal Dutch Shell (UK), Statoil (Norway), and PTT (Thailand) each opted to take large positions in one project each. Table 1 provides a list of all foreign investments in the oil sands since 2004. Figure 1: Total Oil Sands Foreign Investment since 2003, Country of Origin Korea 1% Thailand Norway 6% UK 7% 2% US France 33% 18% China 33% Source: Canoils. Foreign Investment in the Oil Sands and British Columbia Shale Gas 2 Table 1: Oil Sands Foreign Investment Deals Year Country Acquirer Brief Description Total Acquisition Cost (000) 2012 China PetroChina 40% interest in MacKay River 680,000 project from AOSC 2011 China China National Offshore Acquisition of OPTI Canada 1,906,461 Oil Corporation 2010 France Total SA Alliance with Suncor.
    [Show full text]
  • National Energy Board Report
    Summary of Recommendation Canadian public interest The National Energy Board (NEB or Board) finds that the Trans Mountain Expansion Project (Project) is in Canada’s public interest, and recommends the Governor in Council (GIC) approve the Project and direct the Board to issue the necessary Certificate of Public Convenience and Necessity (CPCN) and amended CPCNs. Should the GIC approve the Project, the associated regulatory instruments (Instruments) issued by the Board would come into effect. Should the GIC approve the Project, the Board considers it necessary that the CPCNs and Instruments be subject to 157 conditions.2 These conditions would address issues such as safety, protection of the environment and other considerations that are identified throughout this NEB Report. To set the context for its recommendation, the overarching consideration for the Board’s public interest determination was: can this Project be constructed, operated and maintained in a safe manner. The Board found the Project would meet this threshold. While this initial consideration was fundamental to the Board’s determination, a finding that a pipeline can be constructed, operated and maintained in a safe manner does not mean it is necessarily in the public interest - there are other considerations that the Board must weigh in coming to its public interest determination, as discussed below. However, the analysis would go no further if this fundamental question were to be answered in the negative; an unsafe pipeline can never be in the public interest. If constructed, the Project would approximately triple the capacity of the Trans Mountain Pipeline system in Western Canada. Together, the current and expanded pipeline would ship oil from Edmonton, Alberta, to Burnaby, British Columbia.
    [Show full text]
  • OPTI CANADA INC (Form: 6-K, Filing Date: 11/04
    SECURITIES AND EXCHANGE COMMISSION FORM 6-K Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments Filing Date: 2009-11-04 | Period of Report: 2009-11-03 SEC Accession No. 0001279569-09-001357 (HTML Version on secdatabase.com) FILER OPTI CANADA INC Business Address 520 FIFTH AVENUE SW CIK:1177446| IRS No.: 000000000 SUITE 2250 Type: 6-K | Act: 34 | File No.: 333-148909 | Film No.: 091155636 CALGARY A0 00000 SIC: 1311 Crude petroleum & natural gas 4032499425 Copyright © 2012 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 Under the Securities Exchange Act of 1934 For the month of: November, 2009 Commission File Number: 021-45147 OPTI CANADA INC. (Translation of registrant’s name into English) 2100, 555-4th Avenue S.W. Calgary, Alberta Canada T2P 4H2 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F o Form 40-F x Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: Yes o No x If “Yes” is marked, indicate the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
    [Show full text]
  • Geoscience Integration – Geology, Geophysics, and Petrophysics of SAGD Well Pair Planning – a Case Study from Long Lake, Northeastern Alberta
    Geoscience Integration – Geology, Geophysics, and Petrophysics of SAGD well pair planning – a Case Study from Long Lake, Northeastern Alberta Chris Seibel, Nexen Inc., Calgary, Alberta, Canada Long Lake is an integrated steam-assisted gravity drainage (SAGD) and upgrading operation owned and operated by Nexen Inc. and its joint venture partner, CNOOC (formerly Opti Canada Inc.). In 2008, Long Lake began to produce hydrocarbons, the start of a multi-decade project to recover a portion of the billions of barrels of bitumen trapped within the sands of the Aptian-age McMurray Formation. Over the life of the project, a continual feedstock of bitumen will be required to maintain production levels and maximize efficiency of the plant. As the initial SAGD well pairs mature and their bitumen productions rates decline, planning productive future well pairs will be essential. The Long Lake South West project area is the location of at least 30 future SAGD well pairs. The planning of these future SAGD well pairs will be used to illustrate the integration between geosciences. To successfully achieve the objective of planning productive future SAGD well pairs and replacing depleted well pairs requires an integrated approach between geology, geophysics, and petrophysics. The integration between these geosciences begins with the data acquisition from a vertical evaluation well, whereby a core is typically cut and petrophysical logs acquired. The core is described and analysed, and the petrophysical logs interpreted. The core description, core analysis and petrophysical analysis are integrated and calibrated to each other. Applied to this integrated data set is an interpretation of formation markers, stratigraphic frame work and depositional model.
    [Show full text]
  • Groundwater Risks Imposed by in Situ Oil Sands Development DRILLING DOWN Groundwater Risks Imposed by in Situ Oil Sands Development
    DRILLING DOWN Groundwater Risks Imposed by In Situ Oil Sands Development DRILLING DOWN Groundwater Risks Imposed by In Situ Oil Sands Development July 2011 By Julia KO and William F. Donahue Water matters Society of alberta P.O. Box 8386 Canmore, Alberta T1W 2V2 Phone: 403.538.7785 www.water-matters.org We gratefully acknowledge Dr. Gilles Wendling of GW Solutions Inc. for his helpful insight and comments on early drafts of this report. The authors are solely responsible for any errors and opinions presented within the report. Edited by Jeff Gailus, www.jeffgailus.com Design by Michelle Wolstenholme for www.theforest.ca Download a PDF version of this report from our website at www.water-matters.org Table of Contents Executive Summary 4 Recommendations 5 1 Introduction 6 1.1 What is In Situ Oil Sands Development? 6 1.2 Why SAGD? 9 1.3 How Does It Work? 9 1.4 Use, Recycling and Disposal of Water in SAGD Operations 11 2 Policies Governing or Affecting In Situ Groundwater Use 12 2.1 Lower Athabasca Region Groundwater Management Framework 12 2.2 Water Conservation and Allocation Policy for Oilfield Injection 13 2.3 Determining Sustainable Groundwater Use Demands Detailed Knowledge 14 3 Accidents Happen: Risks Posed By In Situ Oil Sands Extraction 15 3.1 Case Study 1: Total’s Joslyn Creek Cap-rock Explosion 15 3.2 Case Study 2: Shell Canada Muskeg River Groundwater Perforation 16 3.3 Case Study 3: Application for Source Water Change for Opti-Nexen’s Long Lake SAGD Project 16 3.4 Classes of Risks to Groundwater Posed by In Situ Oil Sands Extraction
    [Show full text]
  • Canadian Oil Sands (Now Suncor Energy) Built a Mine and Upgrader North of Fort Mcmurray
    OIL SANDS INDUSTRY UPDATE Prepared by Alberta Economic Development June 2006 TABLE OF CONTENTS Page WHAT’S NEW? ..........................................................................................................................................................1 1. INTRODUCTION ...............................................................................................................................................5 2. OIL SANDS INDUSTRY OVERVIEW.............................................................................................................6 2.1 BACKGROUND ................................................................................................................................................6 2.2 OIL SANDS INDUSTRY ACTIVITIES..................................................................................................................7 2.3 FUTURE OIL SANDS EXPENDITURES .............................................................................................................23 2.4 CO-OPERATIVE INITIATIVES .........................................................................................................................25 3. OIL SANDS REGIONS ....................................................................................................................................28 3.1 THE WOOD BUFFALO REGION ......................................................................................................................28 3.2 COLD LAKE REGION.....................................................................................................................................30
    [Show full text]
  • A Discussion Paper on the Oil Sands: Challenges and Opportunities
    A discussion paper on the oil sands: challenges and opportunities Kevin Birn* and Paul Khanna Special thanks to CanmetENERGY in Devon, Alberta for their advice and contribution. Natural Resources Canada 580 Booth Street, Ottawa, ON, K1A 0E4, Canada Abstract Key words: Petroleum Energy, Oil Sands, Environmental Impacts, Heavy Oil, Unconventional Oil The oil sands have become a significant source of secure energy supply and a major economic driver for Canada. As production in the oil sands expands so too has concern about the effects of development on communities, water, land, and air. This paper aims to provide a basis for an informed discussion about the oil sands by examining the current challenges facing development and by reviewing the central issues, both positive and negative facing the industry. This paper isn‘t meant to provide an exhaustive list of all potential impacts associated with oil sands development or document the oil sands regulatory regime. Outline Introduction....................................................................................................................... 3 The Resource ..................................................................................................................... 5 The History........................................................................................................................ 6 Oil Sands Operations........................................................................................................ 8 Surface Mining Operations..........................................................................................
    [Show full text]
  • Oilsands Canada Corporation Oilsands Canada Corporation Was Launched in August 2007, Raising $50 Million
    OilSands 3/14/08 10:00 AM Page c1 OILSANDS 2007 Annual Canada Report Corporation IDDLEFIELD INCOME FUNDS OilSands 3/19/08 2:04 PM Page ifc1 Middlefield Income Funds Profile Middlefield Corporate Profile Since its inception in 1979, the Middlefield Group, with over $4.0 billion in assets under management, has established a strong reputation as a creator and manager of unique investment products designed to balance risk and return to meet the demanding requirements of investment advisors and their clients. These financial products include private and public resource funds, venture capital assets, mutual funds, real estate and closed-end, publicly traded income funds. Many of Middlefield’s investment products are designed and managed by our own professionals while some involve strategic partnerships with other “best-in-class” firms that bring unique value to our product offerings. Our investment team comprises ten professionals including portfolio managers, analysts and traders, five of whom hold the CFA designation. Guardian Capital LP, one of the pioneers in income trust investing, acts as Co-Advisor on several of our income funds while Groppe, Long & Littell, based in Houston and one of the world’s leading forecasters of oil and natural gas prices, acts as Special Advisor with respect to the strategic outlook for the energy sector. In addition, The Mitchell Group, Inc., which is based in Houston and has an excellent long-term track record in energy investing, acts as Sub-Advisor with respect to U.S. energy stocks. Looking ahead, Middlefield remains committed to the goal of developing new and unique investment products to assist investment advisors in providing added value for their clients.
    [Show full text]