Reports related to this article:
Project(s): View 12 related projects in PECWeb
Plant(s): View 7 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary, Alberta) enjoyed record quarterly production at the end of 2021, with soaring commodity prices bolstering its bottom line. More than 75% of CNRL's 1.31 million barrels of oil-equivalent per day in the fourth quarter was attributed to liquids production, mostly from its oil sands mining in Western Canada's Montney Shale. CNRL executives pointed to further Montney development in 2022 to take advantage of heavy demand and prices. Industrial Info is tracking more than US$30.5 billion worth of active projects from CNRL.
Click on the image at right for a graph detailing CNRL's active projects, by project type.
CNRL is targeting about C$3.6 billion (US$2.79 billion) in capital expenditures for 2022, compared with net capital expenditures of about C$3.5 billion (US$2.72 billion) (excluding acquisitions) in 2021. Full-year production is targeted at about 1.27 million to 1.32 million barrels of oil-equivalent per day. In a quarterly earnings-related conference call, Chief Executive Officer Tim McKay acknowledged CNRL was facing inflationary pressure, but said its drilling teams were mitigating its effects.
"As part of our 2022 strategic growth capital, the company has commenced a three-rig drill program in thermal [drilling for bitumen] that will conclude in the second quarter of 2023," McKay said. "This program targets to drill three pads at Kirby and two pads at Jackfish, targeting on-stream production volumes in mid-2023, with an average capital efficiency of approximately C$8,000 (US$6,210) per barrel of oil-equivalent per day."
CNRL already is in the process of adding a well pad at its Kirby South Production Field & Processing Plant near Lac La Biche, Alberta, which produces 40,000 BBL/d of bitumen via steam-assisted gravity drainage (SAGD) technology. The company also is proposing new processing plants at Kirby South and Kirby North, which would add 45,000 BBL/d and 60,000 BBL/d of capacity, respectively, bringing each facility's total capacity to 85,000 BBL/d and 100,000 BBL/d if they are approved. CNRL continues to seek permits for the new processing plants. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed project reports on the new well pad at Kirby South and the new plants at Kirby South and Kirby North.
At its Jackfish III Production Field & Processing Plant near Conklin, Alberta, which produces about 40,000 BBL/d, CNRL is in the process of adding two new well pads, and it is preparing to begin work on a new well pad at Jackfish II later this year. The company also is performing a series of equipment replacements and upgrades at Jackfish I, and is proposing a new SAGD processing plant for Jackfish, which would produce at least 25,000 BBL/d if approved. Subscribers can read detailed project reports on the first, second and third well pads, as well as the upgrades and SAGD plant.
McKay also said CNRL is preparing to add a new SAGD pad at its Primrose North Production Field & Processing Plant near Cold Lake, Alberta, which utilizes the cyclic steam stimulation (CSS) process. The company also is planning a series of equipment replacements and upgrades across its Primrose production plants. Subscribers can read more details in Industrial Info's project reports on the new SAGD pad and upgrades at Primrose North, East and South.
Montney Yields Solid Crude, Natural Gas Gains in 2021
Despite a slowdown in production due to rough December weather, CNRL's high-value Montney light crude developments produced above par in 2021, with 18 new wells brought on stream, producing 11,000 BBL/d of light crude oil and 1.7 billion cubic feet per day of natural gas. "Based on the success, CNRL targets to complete 15 net wells as part of our 2022 capital budget, and is targeted to maintain the processing facilities at full capacity for this year," McKay said in the conference call.
McKay noted that CNRL's natural gas production benefited from more activity in the Montney Shale: "Overall, 2021 annual natural gas production was approximately 1.695 billion cubic feet per day, which was a 15% increase over 2020 production. For North American operations, 2021 annual natural gas production was approximately 1.68 billion cubic feet, versus 1.4 [billion] for 2020, which was primarily a result of the company's strategic decision to invest in the company's liquids-rich Montney area through the drill-to-fill strategy--adding low-cost, high-value, liquid-rich natural gas production volumes, as well as opportunistic acquisitions completed in 2020 and 2021."
Industrial Info is tracking more than $333 million worth of natural gas production and processing projects from CNRL. Subscribers can click here for a list of project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing CNRL's active projects, by project type.CNRL is targeting about C$3.6 billion (US$2.79 billion) in capital expenditures for 2022, compared with net capital expenditures of about C$3.5 billion (US$2.72 billion) (excluding acquisitions) in 2021. Full-year production is targeted at about 1.27 million to 1.32 million barrels of oil-equivalent per day. In a quarterly earnings-related conference call, Chief Executive Officer Tim McKay acknowledged CNRL was facing inflationary pressure, but said its drilling teams were mitigating its effects.
"As part of our 2022 strategic growth capital, the company has commenced a three-rig drill program in thermal [drilling for bitumen] that will conclude in the second quarter of 2023," McKay said. "This program targets to drill three pads at Kirby and two pads at Jackfish, targeting on-stream production volumes in mid-2023, with an average capital efficiency of approximately C$8,000 (US$6,210) per barrel of oil-equivalent per day."
CNRL already is in the process of adding a well pad at its Kirby South Production Field & Processing Plant near Lac La Biche, Alberta, which produces 40,000 BBL/d of bitumen via steam-assisted gravity drainage (SAGD) technology. The company also is proposing new processing plants at Kirby South and Kirby North, which would add 45,000 BBL/d and 60,000 BBL/d of capacity, respectively, bringing each facility's total capacity to 85,000 BBL/d and 100,000 BBL/d if they are approved. CNRL continues to seek permits for the new processing plants. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed project reports on the new well pad at Kirby South and the new plants at Kirby South and Kirby North.
At its Jackfish III Production Field & Processing Plant near Conklin, Alberta, which produces about 40,000 BBL/d, CNRL is in the process of adding two new well pads, and it is preparing to begin work on a new well pad at Jackfish II later this year. The company also is performing a series of equipment replacements and upgrades at Jackfish I, and is proposing a new SAGD processing plant for Jackfish, which would produce at least 25,000 BBL/d if approved. Subscribers can read detailed project reports on the first, second and third well pads, as well as the upgrades and SAGD plant.
McKay also said CNRL is preparing to add a new SAGD pad at its Primrose North Production Field & Processing Plant near Cold Lake, Alberta, which utilizes the cyclic steam stimulation (CSS) process. The company also is planning a series of equipment replacements and upgrades across its Primrose production plants. Subscribers can read more details in Industrial Info's project reports on the new SAGD pad and upgrades at Primrose North, East and South.
Montney Yields Solid Crude, Natural Gas Gains in 2021
Despite a slowdown in production due to rough December weather, CNRL's high-value Montney light crude developments produced above par in 2021, with 18 new wells brought on stream, producing 11,000 BBL/d of light crude oil and 1.7 billion cubic feet per day of natural gas. "Based on the success, CNRL targets to complete 15 net wells as part of our 2022 capital budget, and is targeted to maintain the processing facilities at full capacity for this year," McKay said in the conference call.
McKay noted that CNRL's natural gas production benefited from more activity in the Montney Shale: "Overall, 2021 annual natural gas production was approximately 1.695 billion cubic feet per day, which was a 15% increase over 2020 production. For North American operations, 2021 annual natural gas production was approximately 1.68 billion cubic feet, versus 1.4 [billion] for 2020, which was primarily a result of the company's strategic decision to invest in the company's liquids-rich Montney area through the drill-to-fill strategy--adding low-cost, high-value, liquid-rich natural gas production volumes, as well as opportunistic acquisitions completed in 2020 and 2021."
Industrial Info is tracking more than $333 million worth of natural gas production and processing projects from CNRL. Subscribers can click here for a list of project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
