Released December 28, 2011 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Oil sands projects in Alberta continue to increase in number, size and scope, in spite of increasing development costs. Just last week, Imperial Oil Limited (TSX:IMO) (Calgary, Alberta) approved an $8.9 billion expansion of the Kearl oil sands mine in Alberta. The first phase of the Kearl oil sands project is 80% complete and is expected to start up late next year.
Construction on the first phase began in 2009. AMEC Americas Limited (Calgary, Alberta), Fluor Canada Limited (Calgary, Alberta) and Horton CBI Limited (Sherwood Park, Alberta) are all involved with engineering, procurement and construction of the first phase. All in all, Imperial Oil envisions a $30 billion expenditure through 2020 to bring the Kearl Oil Sands project up to full production. This represents a significant increase in cost over previous estimates.
As the number of projects reaching the construction stage in the area grows, it is placing increased pressure on resources like labor, equipment supply and materials, which is adding to project costs, not to mention the cost of infrastructure required to bring these resources to the market.
Currently, there are 222 active oil sands projects under development in Alberta. These projects represent $192 billion in total investment value and range from those in the early planning stages to projects under construction.
Click on the image at right to view a breakdown of oils sands projects by industry.
Large surface mining projects account for the lion's share of the activity, representing almost half of the value of oil sands projects in Alberta. There are 38 large-scale mining projects totaling $90 billion.
Most of the oil sands are not accessible by surface mining. They are deeper and must be tapped using more traditional in-situ oil & gas "drilling well" technology to recover the bitumen trapped in the oil sands formations. Most of these are employing Steam Assisted Gravity Drainage (SAGD) technology, which uses drilling wells to inject steam into deep formations in order to extract bitumen. As part of its North American Industrial Project Database, Industrial Info is tracking 140 projects classified in the Oil & Gas Production Industry totaling $84 billion. In addition to the giant Kearl oil sands mining project, Imperial Oil is developing several in-situ Oil & Gas Production projects, including the Nabiye bitumen project. If approved, construction could start next year on a $750 million bitumen processing plant at Cold Lake. For details see March 3, 2010 news article - Imperial Oil Limited Awards Contracts, Resubmits Application for $1.5 Billion Nabiye Oil Sands Project.
Upgrading of the bitumen is required before it can be refined in a traditional petroleum refinery. There are 27 upgrading projects in Alberta (and numerous more outside of Alberta), representing about $16.8 billion in investment value. The projects require more than half a billion dollars worth of pipeline and terminal construction.
View Project Report - 56000261 56000511
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
Construction on the first phase began in 2009. AMEC Americas Limited (Calgary, Alberta), Fluor Canada Limited (Calgary, Alberta) and Horton CBI Limited (Sherwood Park, Alberta) are all involved with engineering, procurement and construction of the first phase. All in all, Imperial Oil envisions a $30 billion expenditure through 2020 to bring the Kearl Oil Sands project up to full production. This represents a significant increase in cost over previous estimates.
As the number of projects reaching the construction stage in the area grows, it is placing increased pressure on resources like labor, equipment supply and materials, which is adding to project costs, not to mention the cost of infrastructure required to bring these resources to the market.
Currently, there are 222 active oil sands projects under development in Alberta. These projects represent $192 billion in total investment value and range from those in the early planning stages to projects under construction.
Click on the image at right to view a breakdown of oils sands projects by industry.
Large surface mining projects account for the lion's share of the activity, representing almost half of the value of oil sands projects in Alberta. There are 38 large-scale mining projects totaling $90 billion.Most of the oil sands are not accessible by surface mining. They are deeper and must be tapped using more traditional in-situ oil & gas "drilling well" technology to recover the bitumen trapped in the oil sands formations. Most of these are employing Steam Assisted Gravity Drainage (SAGD) technology, which uses drilling wells to inject steam into deep formations in order to extract bitumen. As part of its North American Industrial Project Database, Industrial Info is tracking 140 projects classified in the Oil & Gas Production Industry totaling $84 billion. In addition to the giant Kearl oil sands mining project, Imperial Oil is developing several in-situ Oil & Gas Production projects, including the Nabiye bitumen project. If approved, construction could start next year on a $750 million bitumen processing plant at Cold Lake. For details see March 3, 2010 news article - Imperial Oil Limited Awards Contracts, Resubmits Application for $1.5 Billion Nabiye Oil Sands Project.
Upgrading of the bitumen is required before it can be refined in a traditional petroleum refinery. There are 27 upgrading projects in Alberta (and numerous more outside of Alberta), representing about $16.8 billion in investment value. The projects require more than half a billion dollars worth of pipeline and terminal construction.
View Project Report - 56000261 56000511
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
