oil sands production profile - alberta · canada is a net exporter of oil and is consistently the...

22
ALBERTA DEPARTMENT OF ENERGY OIL SANDS PRODUCTION PROFILE 2002-2010 Christopher Holly Martin Mader, EIT Jesse Toor

Upload: others

Post on 16-May-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

ALBERTA DEPARTMENT OF ENERGYOIL SANDS PRODUCTION PROFILE

2002-2010Christopher HollyMartin Mader, EITJesse Toor

Page 2: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

This paper was prepared by the Research and Technology Branch, Alberta Energy, to illustrate

technology developments in the Alberta oil and gas industry. The Government of Alberta shall

have no liability whatsoever to third parties for any defect, defi ciency, error or omission in the

contents, analyses and evaluations presented in this paper. Any questions about this paper

should be directed to

Branch Head

Research and Technology Branch

Alberta Department of Energy

9945 – 108 Street

Edmonton, Alberta Canada

T5K 2G6

April 4, 2012

Page 3: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

11

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Oil Sands Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Production Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Primary/Enhanced Oil Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Cyclic Steam Stimulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Steam Assisted Gravity Drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Data & Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Annual Oil Sands Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Annual Oil Sands Production by Technology . . . . . . . . . . . . . . . . . . . . . . .6Annual Oil Sands Production by Area . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Annual Oil Sands Areas Production by Technology . . . . . . . . . . . . . . . . . .9Annual Oil Sands Production - SAGD . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Appendix I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162002 – 2010 Oil Sands Project Production Volumes . . . . . . . . . . . . . . . .26

Appendix II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Page 4: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

2

INTRODUCTIONCanada is endowed with signifi cant crude oil resources, in the order of two trillion barrels of oil

in place. Although these oil deposits are some of the most challenging in the world to develop,

innovative research and production technologies have enabled them to move from resources

to proven reserves. Canada is a net exporter of oil and is consistently the top supplier of oil

imports to the United States1. On its own, Alberta is responsible for approximately 71.2 percent

of Canada’s oil exports to the United States2,3 (see Appendix II-vi). 60 percent is from the Oil

Sands region using a combination of surface mining and in situ production methods4 .

The purpose of this report is to provide a detailed overview of oil production volumes from

the Oil Sands region based on production information submitted to the Ministry of Energy5.

Specifi cally, this report will provide an analysis of production volumes based on (1) region, and

(2) production technology as defi ned by the Alberta Department of Energy.

METHODOLOGYFor each given annual reporting period (calendar year - see Appendix I), production data

was collected by project and converted to barrels of bitumen per day (bpd) using standard

conversion calculations. If projects were joint ventures, the production was split amongst the

operators based on the percentage of ownership (at year end) - the total oil production for the

year is provided in Appendix I, along with operators’ shares of ownership. For each project,

area or region was identifi ed as well as owner and production technology (see Production

Technologies).

For accounting purposes, projects utilizing Primary/Enhanced oil recovery (EOR) production

technologies which were smaller than 4000 bpd, belonging to the same company, and in the

same area, were combined into one daily production value with the project list provided in

Appendix I-x. This was done because there is approximately a 2:1 ratio of Primary/EOR projects

to the other three production technologies (see Production Technologies) projects combined.

The Primary/EOR projects are also typically smaller per project than thermal projects because

of the nature of the deposits and the subsequent production technologies. Thermal (CSS

or SAGD) projects with less than 4000 bpd production remain separate in order to perform

growth analyses on these production technologies. The production totals for experimental,

conventional, and freehold projects are combined due to their smaller production volumes

compared to the majority of Oil Sands projects.

1 http://www.eia.gov/dnav/pet/pet_move_wimpc_s1_w.htm2 http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/2010/ttlcrdlxprtdstntn2010.xls3 http://www.ercb.ca/docs/products/STs/st3/2010/Oil_2010.xls4 http://www.centreforenergy.com/FactsStats/Statistics.asp?Template=5,25 http://www.fi nance.alberta.ca/publications/budget/budget2012/energy.pdf - The Ministry consists of the Department

of Energy and the Alberta Petroleum Marketing Commission. It also includes the Energy Resources Conservation Board (ERCB) and Alberta Utilities Commission (AUC), which are provincial agencies exercising independent adjudicative functions for which the Minister is responsible. The ERCB regulates the safe, responsible, and effi cient development of Alberta’s energy resources: oil, natural gas, oil sands, coal, and pipelines. The AUC regulates the utilities sector, natural gas and electricity markets to protect social, economic and environmental interests of Alberta where competitive market forces do not.

Page 5: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

33

The main objective of the Oil Sands Production Profi le (OSPP) was to identify the growth trend in

different production technologies over the past 9 years and how these technologies have been

applied to different Oil Sands areas. The total production values given in this profi le are refl ective

of ERCB/EUB data with the exclusion of experimental, conventional, and freehold Oil Sands

projects. Growth trends (linear or exponential) were measured and verifi ed ( 0.95 confi dence)

using R-squared regression analysis (see Appendix II).

OIL SANDS AREAS There are three main Oil Sands areas:

1. Athabasca

2. Cold Lake

3. Peace River

To identify with greater clarity where growth is occurring, the Athabasca Oil Sands Area (AOSA)

is divided into three sub-areas:

1. Athabasca (North) – The AOSA, North of Township 86 (known hereafter as “Athabasca North”)

2. Athabasca (Wabiskaw) – The AOSA, from Township 86 South, from Range 16 West (known hereafter as “Wabiskaw”).

3. Athabasca (Conklin) – The AOSA, from Township 86 South, East of Range 16 (known hereafter as “Conklin”).

The map in Figure 1-i shows the locations of these areas. The crude oil characteristics vary

signifi cantly among these areas, as shown in Figure 1-ii.

Page 6: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

4

ii) SELECT PHYSICAL CHARACTERISTICS OF OIL SANDS AREAS

The combined effect of reservoir characteristics (depth, pressure, permeability, continuity,

pay thickness, viscosity, API and others) and technological research have translated into the

application and selection of different production technologies.

AREA RESERVOIR DEPTH (m) APIMINING

(to top of pay)IN-SITU

ATHABASCA NORTH 0-80 80-275 6-10

WABISKAW N/A 300-550 Up to 18

CONKLIN N/A 150-475 8-12

COLD LAKE N/A 375-525 10-13

PEACE RIVER N/A 525-800 6-16

FIGURE 1: i) OIL SANDS AREAS

63

16

28

28A

63

35

16

2843

43

2

2

35

16

Edmonton

ColdLake

Fort McMurray

St. Albert

Fort Saskatchewan

PeaceRiver

Lesser Slave Lake

Peace River

Athabasca River

ColdLake

UtikumaLake

Lac laBiche

CallingLake

GordonLake

WinefredLake

Elk IslandNational Park

North SaskatchewanR

iver

At

habasca River

T70

T99

T65

T80

T95

T52

T55

T62

T69

T79

T86

T92

T100

T53

T57

T60

T63

T67

T71

T74

T81

T84

T88

T93

T94

T98

T102

T56

T85

T61

T75

T90

T104

T58

T66

T72

T82

T89

T96

T103

T54

T59

T64

T68

T73

T77

T83

T87

T91

T97

05

T78

R10R7

R17

R8R9

R21R22

R8 R4R14 R9R10

R14 R2R15R11R12

R16R13

R3R15

R6R5 R2 R22R23R6 R24

R20

R21

R2R19

R12R13

R23

R7R17 R3R5R16

R18R19R20R4 R11

R18R1 R24

R1 R1

R7R9

R21R22R25

R11 R10R24

R24R20

R2R12

R12R3 R15R16R17R19

R15R8R5 R1R2 R23R6R8R9

R19

R13R26R16

R23

R3 R1R14 R4R13R14

R6R18

R17R7R20R21R4 R22

R18R25

R10R11R5

T66

T96

T61

T91

T52

T54

T55

T58

T60

T62

T65

T68

T69

T72

T74

T75

T78

T79

T83

T85

T88

T89

T92

T93

T95

T97

T102

T103

T105

T53

T67

T73

T77

T84

T90

T98

T100

T81

T56

T71

T86

T57

T63

T70

T80

T87

T94

T104

T64

T82

T99

T59

R26

82

T86

T90

T93

T97

T100

T103

T87

T91

T98

T94

T84

T99

8

83

T88

T92

T96

T102

T85

T95

9

T89

0

1

SA

SK

AT

CH

EW

AN

PEACE RIVER

COLD LAKE

ATHABASCA(NORTH)

ATHABASCA(CONKLIN)

ATHABASCA(WABISKAW)

Transverse Mercator Projection (10TM)North American Datum 1983 (NAD83)

SOURCE INFORMATION:Indian Reserves: Natural Resources CanadaIndustrial Heartland: Alberta’s Industrial Heartland AssociationOil Sands & Surface Mineable Areas: Energy ResourcesConservation BoardBase Data provided by Spatial Data Warehouse Ltd.

DISCLAIMER:The product or the data represented within may not be revised,copied, distributed, republished, uploaded, posted, or transmittedin any way without prior consent of Alberta Energy, the Governmentof Alberta. The information as depicted is subject to change;therefore the Government of Alberta assumes no responsibilityfor discrepancies at time of use.

Date: April 2012Author: GIS Services (JS)

Oil Sands Area

Oil Sands Sub-Areas

Surface Mineable Area

Industrial Heartland

Indian Reserve

Métis Settlement

National Park

Military Base

Municipality

Hydrography

Major Highway

Alberta's Oil Sands Areas

0 25 5012.5

Kilometres

Area Enlarged

Calgary

Edmonton

Page 7: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

55

PRODUCTION TECHNOLOGIES Four technologies were outlined as the main production technologies currently used in the Oil

Sands areas and are as follows:

Primary/Enhanced Oil RecoveryPrimary recovery from a reservoir is typically the fi rst method of producing oil from a given

reservoir. It uses energy which is already in the reservoir, such as gravity, or pressure drive (also

known as waterdrive/gasdrive), to displace oil and drive it to surface facilities. EOR is typically

any technology for producing oil after primary production is no longer economically viable.

Waterfl ooding, gas injection, and polymer/chemical fl ooding are all examples of EOR. In some

cases, these EOR production technologies are applied at the start of production, rather than

being used as the secondary or tertiary recovery mechanism, in order to increase the ultimate

recovery of oil from the reservoir.

Cyclic Steam StimulationCyclic steam stimulation (CSS), or huff and puff as it is sometimes called, is a thermal production

technology in which one well is used to both inject steam and produce oil. Steam is injected

at pressures high enough that the area surrounding the wellbore fractures, allowing steam

to access and heat new areas of the reservoir. After weeks or months, the steam injection is

completed; a few days are allowed for the steam to condense and then the production of oil

and water begins. Production initially occurs due to increased reservoir pressures; later cycles

require artifi cial lift technologies to produce the remaining oil during the production cycle. The

cycle then starts over after the oil production rates become too small. This technology is as also

applied in the heavy oil fi elds in California.

Steam Assisted Gravity DrainageSteam assisted gravity drainage (SAGD) is a thermal production technology which utilizes two

horizontal wells, known as a well pair, one to inject steam below reservoir fracture pressures,

and the other to produce water and oil. The top horizontal well injects steam over a period

of months to heat the reservoir evenly, creating a steam chamber. The oil from the chamber

drains to the lower production well to allow for production initially through pressure drive, and

then by artifi cial lift or gas lift. The steam injection and oil production happen continuously and

simultaneously once production starts. This technology has a high ultimate recovery of oil from

the reservoir relative to other in situ production technologies.

MiningTruck and shovel technology is used to move sand impregnated with bitumen from the mining

area to an extraction facility. The bitumen is then treated to remove the sand, mineral fi nes

and other impurities in processes which vary among producers. Once the extraction process is

completed, the bitumen is ready for refi ning or upgrading, depending on the company’s chosen

confi guration.

Page 8: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

6

DATA & ANALYSISAnnual Oil Sands ProductionOil sands production was calculated on an annual basis for 2002-2010 production years (see

Methodology and Appendix I) and is presented in Figure 2.

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Total Production

-

200,000

400,000

,

2002 2003 2004 2005 2006 2007 2008 2009 2010

ii) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS

2002 2003 2004 2005 2006 2007 2008 2009 2010

BBL/DAY 823,418 937,637 1,068,476 1,016,021 1,222,393 1,277,561 1,289,900 1,452,718 1,590,467

This chart shows growth in total crude production for the Oil Sands region. Average annual

growth was determined to be 85,228 bpd with an 8.6% Compounded Annual Growth Rate

(CAGR) (see Appendix II for sample calculation). Figure 2-i graphically illustrates the linear

growth (R-squared=0.96, Appendix II-i) over the past 9 years of commercial operations.

Annual Oil Sands Production by TechnologyTo emphasize the growth of separate technologies over the past 9 years, annual production was

further analyzed based on the four commercial production technologies, 1) Primary/EOR, 2)

CSS, 3) SAGD, and 4) Mining (as described in Methodology and Appendix I). Figure 3-i and 3-ii

shows production by the various technologies.

FIGURE 2: I) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS

PR

OD

UC

TIO

N (

bpd)

Page 9: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

77

FIGURE 3: i) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS BY TECHNOLOGY

ii) ANNUAL CRUDE OIL PRODUCTION (BPD) FROM OIL SANDS BY TECHNOLOGY

2002 2003 2004 2005 2006 2007 2008 2009 2010

CSS 156,899 173,667 175,535 198,860 224,277 225,218 219,029 207,947 237,892

MINING 539,888 614,562 704,777 612,751 760,839 770,835 721,491 825,842 856,876

PRIMARY 96,037 104,839 115,537 117,970 128,878 153,296 169,131 174,423 173,145

SAGD 30,594 44,569 72,627 86,440 108,398 128,212 180,248 244,507 322,644

TOTAL 823,418 937,637 1,068,476 1,016,021 1,222,393 1,277,561 1,289,900 1,452,718 1,590,467

iii) CRUDE OIL GROWTH RATES FROM OIL SANDS BY TECHNOLOGY

GROWTH (BPD/YEAR) COMPOUNDED ANNUAL GROWTH (CAGR)

CSS 8,999 5.3%

MINING 35,221 5.9%

PRIMARY 8,568 7.6%

SAGD 32,450 34.2%

Separating production technologies allowed for calculation of the individual growth rates

(CAGR) of the technologies, and showed the corresponding trends. Growth rates can be seen

in Figure 3-iii. CAGR for CSS (5.3%), Mining (5.9%) and Primary (7.6%), exhibited growth rates

(Appendix II-i) similar to total annual crude production (8.5%) (Figure 2-i and 2-ii), while SAGD

production exhibited exponential growth (R-squared=0.99, Appendix II-iv) with a signifi cantly

greater CAGR (34.2%) than all other production technologies.

PR

OD

UC

TIO

N (

bpd)

300 000

400,000

500,000

600,000

700,000

800,000

900,000

CSS

Mining

Primary

SAGD

-

100,000

200,000

300,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Page 10: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

8

Annual Oil Sands Production by Area

Production trends were also examined within the distinct Oil Sands areas (see Oil Sands Areas).

Annual crude production was determined for the 1) Athabasca North, 2) Cold Lake, 3) Conklin,

4) Peace River, and 5) Wabiskaw areas (as described in Methodology and Appendix I). Figure 4-i

and 4-ii shows the annual production volumes for the various regions.

FIGURE 4i) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS BY AREA

ii) ANNUAL CRUDE OIL PRODUCTION (BPD) FROM OIL SANDS BY AREA

2002 2003 2004 2005 2006 2007 2008 2009 2010

ATHABASCA NORTH

548,031 626,848 733,869 654,428 816,442 829,825 787,655 904,831 941,981

COLD LAKE 201,715 226,665 237,534 246,594 276,332 285,400 293,347 286,669 323,505

CONKLIN 20,583 31,204 42,741 44,129 52,304 62,897 105,840 155,543 226,811

PEACE RIVER 9,965 12,328 15,167 21,864 20,077 36,087 38,633 41,133 36,947

WABISKAW 42,902 40,593 39,165 49,006 57,238 63,351 64,425 64,542 61,223

TOTAL 823,195 937,637 1,068,476 1,016,021 1,222,392 1,277,561 1,289,900 1,452,719 1,590,467

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Athabasca North

Cold Lake

Conklin

Peace River

Wabiskaw

-

100,000

200,000

300,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

PR

OD

UC

TIO

N (

bpd)

Page 11: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

99

iii) ANNUAL CRUDE OIL GROWTH RATES FROM OIL SANDS BY AREA

AVERAGE GROWTH (BPD/YEAR) COMPOUNDED ANNUAL GROWTH RATE

ATHABASCA NORTH 49,244 7.0%

COLD LAKE 15,224 6.1%

CONKLIN 25,779 35.0%

PEACE RIVER 3,373 17.8%

WABISKAW 2,290 4.5%

CAGRs were calculated for Athabasca North (7.0%), Cold Lake (6.1%), Conklin (35.0%), Peace

River (17.8%) and Wabiskaw (4.5%) areas (Figure 4-iii). All areas exhibited CAGRs less than

10%, with the exception of the Peace River (17.8%) and Conklin areas (Appendix II-iii). The

Conklin area exhibited exponential growth (Appendix II-iv).

Annual Oil Sands Areas Production by Technology

Regional production volumes were further sub-divided on the basis of technology to determine

production trends in each area. Results are shown in Figure 5-i to 5-vi.

FIGURE 5i) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS BY AREA – ATHABASCA NORTH

400,000

500,000

600,000

700,000

800,000

900,000

Mining

SAGD

-

100,000

200,000

300,000

2002 2003 2004 2005 2006 2007 2008 2009 201

PR

OD

UC

TIO

N (

bpd)

Page 12: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

10

ii) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS BY AREA – COLD LAKE

iii) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS BY AREA – CONKLIN

100,000

150,000

200,000

250,000

SAGD

-

50,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

100,000

150,000

200,000

250,000

CSS

Primary

SAGD

-

50,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

PR

OD

UC

TIO

N (

bpd)

PR

OD

UC

TIO

N (

bpd)

Page 13: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

1111

iv) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS AREA BY AREA – PEACE RIVER

15,000

20,000

25,000

30,000

35,000

40,000

CSS

Primary

-

5,000

10,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

v) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS AREA BY REGION – WABISKAW

30,000

40,000

50,000

60,000

70,000

Primary

-

10,000

20,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

PR

OD

UC

TIO

N (

bpd)

PR

OD

UC

TIO

N (

bpd)

Page 14: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

12

vi) ANNUAL CRUDE OIL PRODUCTION (BPD) AND GROWTH RATES FROM OIL SANDS REGIONS BY TECHNOLOGY

2002 2003 2004 2005 2006 2007 2008 2009 2010 GROWTH RATE (bpd/y)

CAGR

ATHABASCA NORTH

CSS - - - - - - - - - - -

MINING 539,888 614,562 704,777 612,751 760,839 770,835 721,491 825,842 856,876 39,623 5.9%

PRIMARY - - - - - - - - - - -

SAGD 8,142 12,286 29,092 41,677 55,603 58,990 66,164 78,989 85,105 9,620 34.1%

COLD LAKECSS 148,045 164,464 167,455 189,912 217,747 216,196 210,217 202,468 233,681 10,705 5.9%

MINING - - - - - - - - - - 0.0%

PRIMARY 52,024 61,121 69,285 56,048 58,093 62,879 74,885 74,226 79,097 3,384 5.4%

SAGD 1,645 1,079 794 634 492 6,325 8,245 9,975 10,728 1,135 26.4%

CONKLIN

CSS - - - - - - - - - - 0.0%

MINING - - - - - - - - - - 0.0%

PRIMARY - - - - - - - - - - 0.0%

SAGD 20,806 31,204 42,741 44,129 52,304 62,897 105,840 155,543 226,811 25,751 34.8%

PEACE RIVER

CSS 8,854 9,203 8,080 8,948 6,530 9,021 8,812 5,430 4,212 (580) 0.0%

MINING - - - - - - - - - - 0.0%

PRIMARY 1,111 3,125 7,087 12,916 13,548 27,066 29,821 35,654 32,735 3,953 52.6%

SAGD - - - - - - - - - - 0.0%

WABISKAW

CSS - - - - - - - - - - 0.0%

MINING - - - - - - - - - - 0.0%

PRIMARY 42,902 40,593 39,165 49,006 57,238 63,351 64,425 64,542 61,223 2,290 4.5%

SAGD - - - - - - - - - - 0.0%

CAGRs for technologies in all regions exhibited similar growth displayed by technologies in the overall Oil Sands

area (Figure 3-iii), with SAGD based production showing (exponential) growth in every producing region but Peace

River and Wabiskaw. Primary production in the Peace River area showed a signifi cant CAGR (52.6%), with a

relatively low production volume.

Annual Oil Sands Production - SAGD

To closer examine the exponential growth trends in the Conklin region, specifi cally, SAGD operations (Appendix

II-iv and Appendix II-v), annual SAGD production was further analyzed to determine the top 3 projects based on

absolute production. Top 3 SAGD producers were identifi ed as 1) Foster Creek, 2) Firebag, and 3) Mackay River,

according to the greatest production volumes (See Appendix I). Figure 6-ii highlights the top 3 projects and

corresponding production.

Page 15: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

1313

FIGURE 6i) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS FOR SAGD PRODUCTION

ii) ANNUAL CRUDE OIL PRODUCTION FROM OIL SANDS FOR TOP 3 SAGD PRODUCERS

150,000

200,000

250,000

300,000

350,000

SAGD

-

50,000

100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

150,000

200,000

250,000

300,000

350,000

All other SAGD

Mackay River

Firebag

Foster Creek

-

50,000

100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

PR

OD

UC

TIO

N (

bpd)

PR

OD

UC

TIO

N (

bpd)

Page 16: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

14

iii) ANNUAL CRUDE OIL PRODUCTION (BPD) FROM OIL SANDS FOR TOP 3 SAGD PRODUCERS

2002 2003 2004 2005 2006 2007 2008 2009 2010

FOSTER CREEK 14,563 22,238 29,453 29,598 37,582 49,287 52,702 75,454 102,235

FIREBAG - 32 11,031 19,194 33,680 36,936 37,680 49,075 53,609

MACKAY RIVER 6,672 10,716 16,596 21,297 21,419 20,631 25,414 29,348 31,496

TOP 3 SAGD 21,235 32,986 57,080 70,089 92,681 106,854 115,795 153,878 187,340

ALL OTHER SAGD 9,359 11,583 15,547 16,351 15,717 21,358 64,453 90,629 135,304

TOTAL SAGD 30,594 44,569 72,627 86,440 108,398 128,212 180,248 244,507 322,644

The annual steam-to-oil ratios (SORs) for the top 3 projects were examined to identify

instantaneous (ISOR) and cumulative (CSOR) steam-to-oil ratios (Figure 7-i). SORs are a metric

of energy use and effi ciency for thermal projects like CSS and SAGD. The SOR is reported as the

ratio of the volume of cold water needed to produce the required steam, over the volume of

bitumen produced. A signifi cant trend is the decrease in Annual ISOR and CSOR for the top 3

SAGD producers from the 2002-2010 production years, which represents 60% of current SAGD

production (Figure 7-ii).

FIGURE 7i) ANNUAL ISORS AND CSORS FOR TOP 3 SAGD PRODUCERS

2002 2003 2004 2005 2006 2007 2008 2009 2010

MACKAY RIVER CSOR 5.28 2.87 2.58 2.43 2.50 2.52 2.54 2.53 2.51

ISOR 5.28 2.62 2.36 2.23 2.67 2.59 2.59 2.52 2.41

(BPD) 6,672 10,716 16,596 21,297 21,419 20,631 25,414 29,348 31,496

FIREBAG CSOR - - 5.02 4.26 3.75 3.58 3.42 3.34 3.31

ISOR - - 4.19 3.82 3.29 3.28 3.01 3.12 3.20

(BPD) - - 11,031 19,194 33,680 36,936 37,680 49,075 53,609

FOSTER CREEK CSOR 3.51 2.76 2.66 2.60 2.56 2.56 2.51 2.51 2.45

ISOR 4.00 2.52 2.52 2.46 2.46 2.55 2.31 2.51 2.27

(BPD) 14,563 22,238 29,453 29,598 37,582 49,287 52,702 75,454 102,235

TOP 3 SAGD ISOR 4.4 3.2 2.8 2.8 2.8 2.8 2.6 2.7 2.6

(BPD) 21,235 32,954 57,080 70,089 92,681 106,854 115,795 153,878 187,340

Page 17: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

1515

100,000

150,000

200,000

250,000

3 00

3.50

4.00

4.50

5.00

Prod

uction

(bpd

)

Annual ISOR and Crude Production of Project Top 3 SAGD (2010)

ISO

R(A

nual

)

50,000

2.00

2.50

3.00

2002 2003 2004 2005 2006 2007 2008 2009 2010

ii) ANNUAL ISORS VERSUS PRODUCTION FOR TOP 3 SAGD PRODUCERS

Starting SOR: 4.0 - 5.3Start

2006 SOR; 2.5 - 3.32010 SOR; 2.3 - 3.2

ASOR

Production

(weighted)

Page 18: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

APPENDIX I 2002 – 2010 Oil Sands Project Production Volumes (Note: Oil Sands production volume information is currently being reviewed and an updated version will be posted. Should you have any questions in the interim, please contact Jesse Toor ([email protected]) or Martin Mader ([email protected]). 16

Page 19: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

28

APPENDIX II

Calculations

All Growth rates were calculated using Compounded Annual Growth Rate (CAGR) calculation:

r = [(x1/x2)(1/n)] – 1

Where:

r = Compounded annual growth rate

x1 = 2010 annual production value

x2 = 2002 Annual Production value

n = Production Years/Periods

Trend types and R-squared values were generated using Microsoft Excel. See Figure i-v below

for corresponding equations.

i) Annual Crude Oil Production from Oil Sands

y = 88630x + 743358R² = 0.9598

600 000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

rodu

ction(bpd

)

Total Production

Linear (Total Production)

200,000

400,000

600,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Pr

Page 20: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

2929

ii) Annual Crude Oil Production from Oil Sands by Technology

iii) Annual Crude Oil Production from Oil Sands by Area

y = 34888x + 537543R² = 0.8215

y = 33750x 33392R² = 0.9073

400,000

500,000

600,000

700,000

800,000

900,000

Prod

uction

(bpd

)

CSS

Mining

Primary

SAGD

Linear (CSS)

Linear (Mining)

y = 9002.6x + 157134R² = 0.7849

y = 10995x + 82054R² = 0.9536

-

100,000

200,000

300,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

P

Linear (Primary)

Linear (SAGD)

y = 44879x + 536041

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Prod

uction

(bpd

)

Athabasca

Cold Lake

Conklin

Peace River

Wabiskaw

Linear (Athabasca)

Linear (Cold Lake)y = 13627x + 196062

y = 22382x 29458

y = 4258.3x + 4508.5

y = 3499.9x + 36105

-

100,000

200,000

300,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

P

Linear (Conklin)

Linear (Peace River)

Linear (Wabiskaw)

Page 21: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

30

iv) Annual Crude Oil Production from Oil Sands for SAGD Production

v) Annual Crude Oil Production from Oil Sands for SAGD Production

y = 26270e0.279x

R² = 0.9865

150,000

200,000

250,000

300,000

350,000

Prod

uction

(bpd

)

SAGD

Expon. (SAGD)

-

50,000

100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

P

y = 15805e0.2757x

R² = 0.9582

100,000

150,000

200,000

250,000

Prod

uction

(bpd

)

Conklin

Expon. (Conklin)

-

50,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Page 22: OIL SANDS PRODUCTION PROFILE - Alberta · Canada is a net exporter of oil and is consistently the top supplier of oil imports to the United States1. On its own, Alberta is responsible

3131

vi) Canada and Alberta Crude Oil Exports to the United States Petroleum Administration for Defense Districts (PADDs)

CANADA6 (m3/day) ALBERTA7 (m3/day)

PADD I 25,352.0 5,014.6

PADD II 194,530.8 145,504.3

PADD III 22,451.1 -

PADD IV 34,614.8 47,985.4

PADD V 28,391.1 18,862.3

TOTAL EXPORTS TO USA 305,339.8 217,366.6

The percentage of Alberta crude oil exports (of total Canadian exports) to the United

States were calculated using Canadian National Energy Board (Total Crude Oil Exports by

Destination) and Alberta Environment Resources Conservation Board (ST-3 – Oil Supply &

Disposition) 2010 export volumes (m3/day).1

6 http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/2010/ttlcrdlxprtdstntn2010.xls

7 http://www.ercb.ca/docs/products/STs/st3/2010/Oil_2010.xls