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Released May 14, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary, Alberta) is among the oil and gas producers watching anxiously as wildfires burn up Canada's oil-sands region, which follows a quarter when weaker prices for synthetic crude oil and natural gas diminished earnings. Nonetheless, CNRL is upbeat about its expansion projects in the area, which it expects will benefit from increased shipping on pipelines, including the newly operational Trans Mountain Pipeline expansion. Industrial Info is tracking more than US$42 billion worth of active and planned projects from CNRL, more than half of which is attributed to projects in the oil sands.
Click on the image at right for a graph detailing CNRL's active and planned projects, by type.
When operating at full capacity, the expansion will more than double Trans Mountain's exports to Canada's West Coast, adding to the existing line's 300,000-barrel-per-day (BBL/d) flow. The new system is expected to carry primarily heavy oil sands crude, and CNRL says it should be able to move 94,000 BBL/d on the system. For more information, see May 1, 2024, article - Trans Mountain Pipeline Expansion Set to Open May 1.
But it is not yet known how business in the oil-sands region will be affected by the latest swath of wildfires, which started late last week and quickly blossomed into about 150 separate fires, including dozens in British Columbia and Alberta that Canadian authorities are calling "out of control." Authorities already have evacuated some of the northernmost areas in the two provinces, where CNRL has relatively few active projects.
Despite the concerns posed by wildfires and weak prices, CNRL is seeking ways to significantly increase bitumen output at its production facilities in the region. It is finishing up the US$70 million addition of a well pad at its Jackfish Crude Oil Production Facility near Conklin, Alberta, which involves drilling 16 dual steam-injection and heated-bitumen production wells on a new pad to increase bitumen production levels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can learn more from a detailed project report and plant profile.
"At Jackfish, we drilled two SAGD [steam-assisted gravity drainage] pads in 2023, the first of which ramped up to its full production capacity in April of this year, which is ahead of budget," said Scott Stauth, the chief operating officer of CNRL's Oil Sands division, in a recent quarterly earnings-related conference call. "The second pad is targeted to ramp up the full production capacity in fourth-quarter 2024. This will support continued high utilization rates at the Jackfish facilities."
CNRL also is expanding its development capacities at its Primrose East complex near Cold Lake, Alberta, and its Wolf Lake complex near Bonnyville, Alberta, both of which involve the construction of new well pads. Primrose East also is expected to see 18 new dual horizontal well pairs, while Wolf Lake is expected to see 40 to 50 miles of new steel transmission pipe, partly to replace aging segments. Subscribers can read detailed reports on the Primrose East and Wolf Lake projects.
"At Primrose, we are currently drilling two CSS [cyclic steam stimulation] pads, which are targeted to come on production in the second quarter of 2025. We're also drilling a SAGD pads at Wolf Lake, which is targeted to come on production in the first quarter of 2025."
Stauth also stirred expectations among investors when he said CNRL is considering a 195,000-BBL/d, multi-phase expansion of its Horizon Oil Sands complex near Fort McMurray, Alberta, which is more than double the company's previous estimate of 75,000 BBL/d. Stauth said enhanced engineering and new extraction and treatment processes boosted the projected capacity increase. Subscribers can learn more from a detailed plant profile and can click here for a list of related project reports.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking more than 50 maintenance-related projects from CNRL, totaling more than US$420 million of investment. Subscribers can click here for a list of detailed project reports.
"In April, we successfully completed the planned turnaround of Jackfish a few days ahead of schedule, and we have upcoming turnarounds at Kirby North in May of 2024," Stauth said. "Due to the early completion of the turnaround of Jackfish, the total impact to second-quarter 2024 average production is now targeted to be approximately 15,300 barrels per day, an improvement of 1,800 barrels per day from the previous impact target of 17,100 barrels per day."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from CNRL.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing CNRL's active and planned projects, by type.When operating at full capacity, the expansion will more than double Trans Mountain's exports to Canada's West Coast, adding to the existing line's 300,000-barrel-per-day (BBL/d) flow. The new system is expected to carry primarily heavy oil sands crude, and CNRL says it should be able to move 94,000 BBL/d on the system. For more information, see May 1, 2024, article - Trans Mountain Pipeline Expansion Set to Open May 1.
But it is not yet known how business in the oil-sands region will be affected by the latest swath of wildfires, which started late last week and quickly blossomed into about 150 separate fires, including dozens in British Columbia and Alberta that Canadian authorities are calling "out of control." Authorities already have evacuated some of the northernmost areas in the two provinces, where CNRL has relatively few active projects.
Despite the concerns posed by wildfires and weak prices, CNRL is seeking ways to significantly increase bitumen output at its production facilities in the region. It is finishing up the US$70 million addition of a well pad at its Jackfish Crude Oil Production Facility near Conklin, Alberta, which involves drilling 16 dual steam-injection and heated-bitumen production wells on a new pad to increase bitumen production levels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can learn more from a detailed project report and plant profile.
"At Jackfish, we drilled two SAGD [steam-assisted gravity drainage] pads in 2023, the first of which ramped up to its full production capacity in April of this year, which is ahead of budget," said Scott Stauth, the chief operating officer of CNRL's Oil Sands division, in a recent quarterly earnings-related conference call. "The second pad is targeted to ramp up the full production capacity in fourth-quarter 2024. This will support continued high utilization rates at the Jackfish facilities."
CNRL also is expanding its development capacities at its Primrose East complex near Cold Lake, Alberta, and its Wolf Lake complex near Bonnyville, Alberta, both of which involve the construction of new well pads. Primrose East also is expected to see 18 new dual horizontal well pairs, while Wolf Lake is expected to see 40 to 50 miles of new steel transmission pipe, partly to replace aging segments. Subscribers can read detailed reports on the Primrose East and Wolf Lake projects.
"At Primrose, we are currently drilling two CSS [cyclic steam stimulation] pads, which are targeted to come on production in the second quarter of 2025. We're also drilling a SAGD pads at Wolf Lake, which is targeted to come on production in the first quarter of 2025."
Stauth also stirred expectations among investors when he said CNRL is considering a 195,000-BBL/d, multi-phase expansion of its Horizon Oil Sands complex near Fort McMurray, Alberta, which is more than double the company's previous estimate of 75,000 BBL/d. Stauth said enhanced engineering and new extraction and treatment processes boosted the projected capacity increase. Subscribers can learn more from a detailed plant profile and can click here for a list of related project reports.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking more than 50 maintenance-related projects from CNRL, totaling more than US$420 million of investment. Subscribers can click here for a list of detailed project reports.
"In April, we successfully completed the planned turnaround of Jackfish a few days ahead of schedule, and we have upcoming turnarounds at Kirby North in May of 2024," Stauth said. "Due to the early completion of the turnaround of Jackfish, the total impact to second-quarter 2024 average production is now targeted to be approximately 15,300 barrels per day, an improvement of 1,800 barrels per day from the previous impact target of 17,100 barrels per day."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from CNRL.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
