OIL SUPPLY 239
of Total's Joslyn project for $500 MM, replacing co-owner Enerplus
Resources.
In terms of oil producing countries, the stability of the political situation in Canada is enviable and it is not surprising that
Canadian oil sands production has seen repeated investment and
has grown from relatively modest quantities in 1967 (Suncor, formerly Great Canadian oil Sands — 49,000 barrels per day of bitumen) and 1978 (Syncrude — 50,000 barrels per day of bitumen) to
volumes in excess of 1 million barrels per day (TD Securities, 2007;
Speight, 2007).
As a result, Athabasca the tar sands are making a significant
contribution to Canada's total oil production, which is in excess of
3,000,000 million barrels per day (BP, 2008). Oil sand production will
continue to increase and offset the decline in conventional crude oil
production, ultimately becoming Canada's foremost source of oil -
being projected to make up about two thirds of Canadian oil production during the next decade (http://www.mining-technology.
com/projects/athabascasands/). At the time of writing, information obtained from literature sources that describe oil sand development indicate that production of synthetic crude oil from the
Canadian oil sand deposits is on the order of 1,250,000 barrels per
day. However, the type of tar sand reserves found at any given site
dictates the extraction method that must be used (e.g., see Gingras
and Rokosh, 2004; Speight, 2007) leading to variations in the cost of
bitumen production.
Where tar sand deposits are relatively close to the surface, openpit mining coupled with the hot water extraction process can be
used to recover bitumen. Deeper deposits require in-situ methods
such as steam injection through vertical or horizontal wells. This
separates the bitumen from the sand in its underground reservoir
prior to the liquid being pumped to the surface for collection and
further processing.
The production of synthetic crude oil from the Canadian tar sands
will help offset the overall North American decline in conventional
light crude production and assist in meeting the expected increased
demand for refined petroleum products. Refiners in the United
States have already switched to running Canadian heavy crude oil,
as well as blends of synthetic crude oil and bitumen (synbit) that
compete against medium sour crude oil as refinery feedstock.
In June 2007, the potential impact of heavy oil and bitumen faced
a setback when ExxonMobil Corporation and ConocoPhillips, two
of the largest U.S. oil companies, abandoned their multi-billion
of Total's Joslyn project for $500 MM, replacing co-owner Enerplus
Resources.
In terms of oil producing countries, the stability of the political situation in Canada is enviable and it is not surprising that
Canadian oil sands production has seen repeated investment and
has grown from relatively modest quantities in 1967 (Suncor, formerly Great Canadian oil Sands — 49,000 barrels per day of bitumen) and 1978 (Syncrude — 50,000 barrels per day of bitumen) to
volumes in excess of 1 million barrels per day (TD Securities, 2007;
Speight, 2007).
As a result, Athabasca the tar sands are making a significant
contribution to Canada's total oil production, which is in excess of
3,000,000 million barrels per day (BP, 2008). Oil sand production will
continue to increase and offset the decline in conventional crude oil
production, ultimately becoming Canada's foremost source of oil -
being projected to make up about two thirds of Canadian oil production during the next decade (http://www.mining-technology.
com/projects/athabascasands/). At the time of writing, information obtained from literature sources that describe oil sand development indicate that production of synthetic crude oil from the
Canadian oil sand deposits is on the order of 1,250,000 barrels per
day. However, the type of tar sand reserves found at any given site
dictates the extraction method that must be used (e.g., see Gingras
and Rokosh, 2004; Speight, 2007) leading to variations in the cost of
bitumen production.
Where tar sand deposits are relatively close to the surface, openpit mining coupled with the hot water extraction process can be
used to recover bitumen. Deeper deposits require in-situ methods
such as steam injection through vertical or horizontal wells. This
separates the bitumen from the sand in its underground reservoir
prior to the liquid being pumped to the surface for collection and
further processing.
The production of synthetic crude oil from the Canadian tar sands
will help offset the overall North American decline in conventional
light crude production and assist in meeting the expected increased
demand for refined petroleum products. Refiners in the United
States have already switched to running Canadian heavy crude oil,
as well as blends of synthetic crude oil and bitumen (synbit) that
compete against medium sour crude oil as refinery feedstock.
In June 2007, the potential impact of heavy oil and bitumen faced
a setback when ExxonMobil Corporation and ConocoPhillips, two
of the largest U.S. oil companies, abandoned their multi-billion