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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's oil and gas majors find themselves at a unique crossroads. Their industry is awash in soaring revenues from sky-high commodity prices and surging demand from consumers, yet companies like Canadian Natural Resources Limited (NYSE:CNQ) (CNRL) (Calgary, Alberta) are bracing for a swath of federal regulations intended to combat climate change. CNRL has vowed to slash its methane emissions 50% by 2030, while preparing a series of expansions to its exploration and production (E&P) assets across Alberta. Industrial Info is tracking more than $30 billion worth of active projects from CNRL, including more than $1 billion worth nearing or under construction.
Click on the image at right for a graph detailing CNRL's active projects, by project type.
More than 70% of the spending attributed to CNRL's active projects is related to plant expansions or the proposed addition of units, equipment or pipelines. This reflects an attitude among investors across the Oil & Gas Industry that companies would be more disciplined in developing their existing assets, rather than opening entirely new E&P facilities. Such projects include the addition of a well pad and a steam-injection pilot project at its Wolf Lake Bitumen Production Complex near Bonnyville, Alberta.
The Wolf Lake development is one of four expansion projects associated with the Primrose-Wolf Lake oil sands field, which is owned and operated by CNRL in east-central Alberta. On the western side of the province, which sits atop the Montney Formation, CNRL is expanding its drilling field near Wembley by constructing multiple well pads and drilling 18 new production wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Wolf Lake well pad and steam-injection projects, and the Wembley expansion.
"Canadian Natural has had a strong execution with its drilling program so far in 2022, resulting in the company drilling 22 net operated wells ahead of forecasts, consisting of 11 net thermal in-situ and 11 conventional E&P wells," said Timothy McKay, the president of CNRL, in a recent earnings-related conference call. "As a result, the 2022 capital expenditures ... have increased by approximately 5%, or $200 million, over the original 2022 levels, and will now be targeted for approximately $3.845 billion, primarily due to the forecasted inflationary pressures in all operating areas for items such as steel, manufactured goods, services, and labor."
McKay also said CNRL plans to drill 117 in situ wells in 2022. ("In situ" refers to methods of oil sands production that use drilling and steam to extract bitumen in place.) This includes 15 in situ wells originally targeted for 2023. As its Pike Bitumen Production facility in Lac La Biche, Alberta, CNRL plans to use steam-assisted gravity drainage (SAGD) technology to produce an additional 70,000 barrels per day (BBL/d) of bitumen from two new processing plants, each of which is slated to produce 35,000 BBL/d by 2026. Subscribers can read detailed reports on the Pike 1A and 1B projects.
CNRL has consolidated its Pike properties with its Jackfish and Kirby facilities, located nearby in east-central Alberta, to use existing assets at all three to increase overall production. CNRL is seeking permits for a new central processing plant at Jackfish East to produce at least 25,000 BBL/d, in addition to a new well pad and 20 new production wells. Subscribers can learn more from Industrial Info's reports on the Jackfish East and well additions.
Canada's oil patch has been producing record profits for its stakeholders throughout 2022. The ARC Energy Research Institute recently raised its estimates for total 2022 after-tax cash flows among E&P companies in the oilpatch from $99 billion at the beginning of the year to $147 billion. While these profits will be a boon to government coffers--especially those of Alberta--E&P executives have found themselves on the defensive following the federal government's announced proposals to cap oil-patch emissions and trim subsidies.
McKay and other industry leaders vowed to resist any "hard cap" on carbon emissions, but analysts at the CBC and other outlets expect the record-high profits might make the public--which has been paying heavily at the pump amid record gas and diesel prices--less sympathetic to E&P companies' arguments.
Subscribers to Industrial Info's GMI Project Database 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 midstream 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 projects, by project type.More than 70% of the spending attributed to CNRL's active projects is related to plant expansions or the proposed addition of units, equipment or pipelines. This reflects an attitude among investors across the Oil & Gas Industry that companies would be more disciplined in developing their existing assets, rather than opening entirely new E&P facilities. Such projects include the addition of a well pad and a steam-injection pilot project at its Wolf Lake Bitumen Production Complex near Bonnyville, Alberta.
The Wolf Lake development is one of four expansion projects associated with the Primrose-Wolf Lake oil sands field, which is owned and operated by CNRL in east-central Alberta. On the western side of the province, which sits atop the Montney Formation, CNRL is expanding its drilling field near Wembley by constructing multiple well pads and drilling 18 new production wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the Wolf Lake well pad and steam-injection projects, and the Wembley expansion.
"Canadian Natural has had a strong execution with its drilling program so far in 2022, resulting in the company drilling 22 net operated wells ahead of forecasts, consisting of 11 net thermal in-situ and 11 conventional E&P wells," said Timothy McKay, the president of CNRL, in a recent earnings-related conference call. "As a result, the 2022 capital expenditures ... have increased by approximately 5%, or $200 million, over the original 2022 levels, and will now be targeted for approximately $3.845 billion, primarily due to the forecasted inflationary pressures in all operating areas for items such as steel, manufactured goods, services, and labor."
McKay also said CNRL plans to drill 117 in situ wells in 2022. ("In situ" refers to methods of oil sands production that use drilling and steam to extract bitumen in place.) This includes 15 in situ wells originally targeted for 2023. As its Pike Bitumen Production facility in Lac La Biche, Alberta, CNRL plans to use steam-assisted gravity drainage (SAGD) technology to produce an additional 70,000 barrels per day (BBL/d) of bitumen from two new processing plants, each of which is slated to produce 35,000 BBL/d by 2026. Subscribers can read detailed reports on the Pike 1A and 1B projects.
CNRL has consolidated its Pike properties with its Jackfish and Kirby facilities, located nearby in east-central Alberta, to use existing assets at all three to increase overall production. CNRL is seeking permits for a new central processing plant at Jackfish East to produce at least 25,000 BBL/d, in addition to a new well pad and 20 new production wells. Subscribers can learn more from Industrial Info's reports on the Jackfish East and well additions.
Canada's oil patch has been producing record profits for its stakeholders throughout 2022. The ARC Energy Research Institute recently raised its estimates for total 2022 after-tax cash flows among E&P companies in the oilpatch from $99 billion at the beginning of the year to $147 billion. While these profits will be a boon to government coffers--especially those of Alberta--E&P executives have found themselves on the defensive following the federal government's announced proposals to cap oil-patch emissions and trim subsidies.
McKay and other industry leaders vowed to resist any "hard cap" on carbon emissions, but analysts at the CBC and other outlets expect the record-high profits might make the public--which has been paying heavily at the pump amid record gas and diesel prices--less sympathetic to E&P companies' arguments.
Subscribers to Industrial Info's GMI Project Database 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 midstream 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).
