Oil reserves in Canada
Encyclopedia
Oil reserves in Canada
were estimated at 179 Goilbbl in 2007. This figure includes oil sands reserves which are estimated by government regulators to be economically producible at current prices using current technology. According to this figure, Canada's reserves are third only to Venezuela and Saudi Arabia. Although the IEA insists on Canada's Reserves as being listed as 179 billion barrels, many experts including CEO of Shell Canada, Clive Mather estimate it to actually be two trillion barrels or more, essentially 8 times more than Saudi Arabia. Over 95% of these reserves are in the oil sands deposits in the province of Alberta
. Alberta contains nearly all of Canada's oil sands and much of its conventional oil reserves. The balance is concentrated in several other provinces and territories. Saskatchewan
and offshore areas of Newfoundland
in particular have substantial oil production and reserves. Alberta has 39% of Canada's remaining conventional oil reserves, offshore Newfoundland 28% and Saskatchewan 27%, but if oil sands are included, Alberta's share is over 98%.
Canada has a highly sophisticated energy industry and is both an importer and exporter of oil and refined products. In 2006, in addition to producing 1.2 Goilbbl, Canada imported 440 Moilbbl, consumed 800 Moilbbl itself, and exported 840 Moilbbl to the U.S. The excess of exports over imports was 400 Moilbbl. Over 99% of Canadian oil exports are sent to the United States, and Canada is the United States' largest supplier of oil.
The decision of accounting 174 Goilbbl of the Alberta oil sands deposits as proven reserves was made by the Alberta Energy and Utilities Board (AEUB), now known as the Energy Resources Conservation Board
(ERCB). Although now widely accepted, this addition was controversial at the time because oil sands contain an extremely heavy form of crude oil known as bitumen which will not flow toward a well under reservoir conditions. Instead, it must be mined, heated, or diluted with solvents to allow it to be produced, and must be upgraded to lighter oil to be usable by refineries. Historically known as bituminous sands or sometimes as "tar sands", the deposits were exposed as major rivers cut through the oil-bearing formations to reveal the bitumen in the river banks. In recent years technological breakthroughs have overcome the economical and technical difficulties of producing the oil sands, and by 2007 64% of Alberta's petroleum production of 1.86 Moilbbl/d was from oil sands rather than conventional oil fields. The ERCB estimates that by 2017 oil sands production will make up 88% of Alberta's predicted oil production of 3.4 Moilbbl/d.
Analysts estimate that a price of $30 to $40 per barrel is required to make new oil sands production profitable. In recent years prices have greatly exceeded those levels and the Alberta government expects $116 billion worth of new oil sands projects to be undertaken between 2008 and 2017. However the biggest constraint on oil sands development is a serious labor and housing shortage in Alberta as a whole and the oil sands centre of Fort McMurray in particular. According to Statistics Canada
, by September, 2006 unemployment rates in Alberta had fallen to record low levels and per-capita incomes had risen to double the Canadian average. Another hurdle has been Canada's capacity to rapidly increase its export pipelines. The National Energy Board
indicated that exporters faced pipeline apportionment
in 2007. However, surging crude oil prices sparked a jump in applications for oil pipelines in 2007, and new pipelines were planned to carry Canadian oil as far south as U.S. refineries on the Gulf of Mexico.
Canada is the only major oil producer in the Organization for Economic Co-operation and Development (OECD) to have an increase in oil production in recent years. Production in the other major OECD producers (the United States, United Kingdom, Norway and Mexico) have been declining, as has conventional oil production in Canada. But total crude oil production in Canada was projected to increase by an average of 8.6 percent per year from 2008 to 2011 as a result of new non-conventional oil projects.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
were estimated at 179 Goilbbl in 2007. This figure includes oil sands reserves which are estimated by government regulators to be economically producible at current prices using current technology. According to this figure, Canada's reserves are third only to Venezuela and Saudi Arabia. Although the IEA insists on Canada's Reserves as being listed as 179 billion barrels, many experts including CEO of Shell Canada, Clive Mather estimate it to actually be two trillion barrels or more, essentially 8 times more than Saudi Arabia. Over 95% of these reserves are in the oil sands deposits in the province of Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
. Alberta contains nearly all of Canada's oil sands and much of its conventional oil reserves. The balance is concentrated in several other provinces and territories. Saskatchewan
Saskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....
and offshore areas of Newfoundland
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...
in particular have substantial oil production and reserves. Alberta has 39% of Canada's remaining conventional oil reserves, offshore Newfoundland 28% and Saskatchewan 27%, but if oil sands are included, Alberta's share is over 98%.
Status
The decision of accounting 174 Goilbbl of the Alberta oil sands deposits as proven reserves was made by the Alberta Energy and Utilities Board (AEUB), now known as the Energy Resources Conservation Board
Energy Resources Conservation Board
The Energy Resources Conservation Board is an independent, quasi-judicial agency of the Government of Alberta. It regulates the safe, responsible, and efficient development of Alberta's energy resources: oil, natural gas, oil sands, coal, and pipelines...
(ERCB). Although now widely accepted, this addition was controversial at the time because oil sands contain an extremely heavy form of crude oil known as bitumen which will not flow toward a well under reservoir conditions. Instead, it must be mined, heated, or diluted with solvents to allow it to be produced, and must be upgraded to lighter oil to be usable by refineries. Historically known as bituminous sands or sometimes as "tar sands", the deposits were exposed as major rivers cut through the oil-bearing formations to reveal the bitumen in the river banks. In recent years technological breakthroughs have overcome the economical and technical difficulties of producing the oil sands, and by 2007 64% of Alberta's petroleum production of 1.86 Moilbbl/d was from oil sands rather than conventional oil fields. The ERCB estimates that by 2017 oil sands production will make up 88% of Alberta's predicted oil production of 3.4 Moilbbl/d.
Statistics Canada
Statistics Canada is the Canadian federal government agency commissioned with producing statistics to help better understand Canada, its population, resources, economy, society, and culture. Its headquarters is in Ottawa....
, by September, 2006 unemployment rates in Alberta had fallen to record low levels and per-capita incomes had risen to double the Canadian average. Another hurdle has been Canada's capacity to rapidly increase its export pipelines. The National Energy Board
National Energy Board
The National Energy Board is an independent economic regulatory agency created in 1959 by the Government of Canada to oversee "international and inter-provincial aspects of the oil, gas and electric utility industries"...
indicated that exporters faced pipeline apportionment
Apportionment
The legal term apportionment means distribution or allotment in proper shares.It is a term used in law in a variety of senses...
in 2007. However, surging crude oil prices sparked a jump in applications for oil pipelines in 2007, and new pipelines were planned to carry Canadian oil as far south as U.S. refineries on the Gulf of Mexico.
Canada is the only major oil producer in the Organization for Economic Co-operation and Development (OECD) to have an increase in oil production in recent years. Production in the other major OECD producers (the United States, United Kingdom, Norway and Mexico) have been declining, as has conventional oil production in Canada. But total crude oil production in Canada was projected to increase by an average of 8.6 percent per year from 2008 to 2011 as a result of new non-conventional oil projects.
See also
- Athabasca Oil SandsAthabasca Oil SandsThe Athabasca oil sands are large deposits of bitumen, or extremely heavy crude oil, located in northeastern Alberta, Canada - roughly centred on the boomtown of Fort McMurray...
- History of the petroleum industry in Canada (oil sands and heavy oil)History of the petroleum industry in Canada (oil sands and heavy oil)Canada's oil sands and heavy oil resources are among the world's great petroleum deposits. They include the vast oil sands of northern Alberta, and the heavy oil reservoirs that surround the small city of Lloydminster, which sits on the border between Alberta and Saskatchewan...