Here are some more videos about our good old oil sands. Here is an excellent series produced by Shell Canada about the oil sands.
There are a ton of other videos online about the oil sands. I encourage you to explore these yourself.
Friday 17 June 2011
An overview of the oil sands
Here is a documentary from 60 Minutes on the Alberta oil sands. Something I hadn't realized before watching this - the Alberta oil sands are the second largest reservoir of crude in the world (and that is just based on what can be extracted using today's technology). Estimates run as high as 2 TRILLION barrels - that is 8 TIMES the amount of oil in Saudi Arabia. It is estimated that in a few short years, the oil coming from the Alberta oil sands will be more important to the USA than ALL of the oil coming from Saudi Arabia.
Edmonton's Industrial Rental Market Is Ramping Up ....
.... and you can bet Redwater isn't going to be far behind.
Edmonton doesn’t have a lot of major corporate head offices, but the city punches far above its weight in other areas. At seven times the size of the city’s downtown office market, Edmonton’s industrial real estate commands the highest average rental rates in Canada.
Photograph by: Larry Wong, file, edmontonjournal.com
EDMONTON - Edmonton doesn’t have a lot of major corporate head offices, but the city punches far above its weight in other areas.
At seven times the size of the city’s downtown office market, Edmonton’s industrial real estate commands the highest average rental rates in Canada.
Now, with oilsands activity heating up, Edmonton’s industrial market is powering ahead, says Vince Lachance, co-owner of SCR Commercial Realty.
“Last (summer) there wasn’t a lot going on, and in our view that was the bottom of the market on the commercial and industrial side,” says Lachance, who previously owned Edmonton’s Century Hospitality Group, operator of the Century Grill and LUX, a downtown hotspot.
“But by November-December we started to see a real uptick and that has continued. So there’s a real solid level of activity now,” he says.
“I had a call (recently) from a large investor out of Toronto and they were looking for industrial properties of between 10 and 50 acres — preferably serviced, so there could be activity there within the next two to three years,” he adds.
“As we see the upgraders develop as well as more secondary, value-added manufacturing, those are the (tenants) that will require the two or four-acre sites and the 20,000-square-foot warehouses. So it’s looking pretty solid.”
Lachance doesn’t expect this up cycle to flame out like the last one. He believes this is the start of anextended period of growth.
“We think there’s going to be steady growth over the next eight, 10 or 12 years in this region. Hopefully people learned from some of the mistakes made in the last go round,” he says.
“China has already spent about$2 billion here over the last 18 months and there’s been a pretty significant consolidation in the industry, with (France’s) Total partnering up with Suncor.
“So it’s more organized, and companies aren’t going to rush out and build on spec. It will be more disciplined.”
At seven times the size of the city’s downtown office market, Edmonton’s industrial real estate commands the highest average rental rates in Canada.
Now, with oilsands activity heating up, Edmonton’s industrial market is powering ahead, says Vince Lachance, co-owner of SCR Commercial Realty.
“Last (summer) there wasn’t a lot going on, and in our view that was the bottom of the market on the commercial and industrial side,” says Lachance, who previously owned Edmonton’s Century Hospitality Group, operator of the Century Grill and LUX, a downtown hotspot.
“But by November-December we started to see a real uptick and that has continued. So there’s a real solid level of activity now,” he says.
“I had a call (recently) from a large investor out of Toronto and they were looking for industrial properties of between 10 and 50 acres — preferably serviced, so there could be activity there within the next two to three years,” he adds.
“As we see the upgraders develop as well as more secondary, value-added manufacturing, those are the (tenants) that will require the two or four-acre sites and the 20,000-square-foot warehouses. So it’s looking pretty solid.”
Lachance doesn’t expect this up cycle to flame out like the last one. He believes this is the start of anextended period of growth.
“We think there’s going to be steady growth over the next eight, 10 or 12 years in this region. Hopefully people learned from some of the mistakes made in the last go round,” he says.
“China has already spent about$2 billion here over the last 18 months and there’s been a pretty significant consolidation in the industry, with (France’s) Total partnering up with Suncor.
“So it’s more organized, and companies aren’t going to rush out and build on spec. It will be more disciplined.”
© Copyright (c) The Edmonton Journal
Shell Upgrader - 100,000 bpd expansion goes online
Another upgrader in the area which has also been in the headlines is, of course, the Shell upgrader. In the below article from The Edmonton Journal, Shell announces the successful commissioning and startup of its 100,000 barrel/day expansion.
Shell Oilsands Upgrader Goes On-stream
Massive Scotford expansion dwarfed other construction projects nationwide
By Journal Business Staff, edmontonjournal.com ay 4, 2011
The Shell Scotford upgrader is shown northeast of Edmonton on May 29, 2010.
Photograph by: Bruce Edwards, edmontonjournal.com
EDMONTON - After five years of work and a cost of around $10 billion, Shell’s Scotford Upgrader Expansion has successfully started production.
Shell announced Wednesday the 100,000-barrels-per-day expansion, which will bring total production to 255,000 bpd, is now in commercial production following months of tests and trial runs of the plant.
“This startup is an important milestone for our heavy oil business,” said Marvin Odum, Shell Upstream Americas Director said in a statement.
“And it adds new capacity from an important source of oil in a world requiring more secure energy.”
The Scotford Upgrader processes oilsands bitumen from the Muskeg River Mine and Jackpine Mine for use in refined oil products. And with production capacity at the Athabasca Oil Sands Project (AOSP) joint-venture now at 255,000 barrels-per-day, engineers will focus on improving operating efficiencies and adding capacity through debottlenecking.
Shell said engineering for the expansion was done in offices in Edmonton, Calgary, Toronto, Houston, New Delhi and Shanghai.
At peak construction, more than 10,000 skilled trades on-site, making Scotford the largest construction project in Canada.
Apprentices made up 30 per cent of the workforce, and about 45,000 people were trained and worked on the site for periods during the construction.
The Scotford project needed 18,000 piles driven 20 metres into the ground to support the massive facility.
About 65,000 tonnes of structural concrete were poured, and 17 tanks capable of holding 270 million litres of liquid were erected.
There are five reactors in the Residue Hydro Conversion (RHC) unit, and each was 16 storeys tall, weighed 1,100 tonnes and were nine inches thick. About 16,000 metric tonnes of structural steel were used, and 546 modules were fabricated for the project.
Shell Canada Energy is the 60-per-cent owner and operator of AOSP, along with Chevron Canada Limited (20 per cent) and Marathon Oil Corporation (20 per cent). The AOSP includes the Muskeg River Mine, Jackpine Mine and Scotford Upgrader.
dcooper@edmontonjournal.com
Shell announced Wednesday the 100,000-barrels-per-day expansion, which will bring total production to 255,000 bpd, is now in commercial production following months of tests and trial runs of the plant.
“This startup is an important milestone for our heavy oil business,” said Marvin Odum, Shell Upstream Americas Director said in a statement.
“And it adds new capacity from an important source of oil in a world requiring more secure energy.”
The Scotford Upgrader processes oilsands bitumen from the Muskeg River Mine and Jackpine Mine for use in refined oil products. And with production capacity at the Athabasca Oil Sands Project (AOSP) joint-venture now at 255,000 barrels-per-day, engineers will focus on improving operating efficiencies and adding capacity through debottlenecking.
Shell said engineering for the expansion was done in offices in Edmonton, Calgary, Toronto, Houston, New Delhi and Shanghai.
At peak construction, more than 10,000 skilled trades on-site, making Scotford the largest construction project in Canada.
Apprentices made up 30 per cent of the workforce, and about 45,000 people were trained and worked on the site for periods during the construction.
The Scotford project needed 18,000 piles driven 20 metres into the ground to support the massive facility.
About 65,000 tonnes of structural concrete were poured, and 17 tanks capable of holding 270 million litres of liquid were erected.
There are five reactors in the Residue Hydro Conversion (RHC) unit, and each was 16 storeys tall, weighed 1,100 tonnes and were nine inches thick. About 16,000 metric tonnes of structural steel were used, and 546 modules were fabricated for the project.
Shell Canada Energy is the 60-per-cent owner and operator of AOSP, along with Chevron Canada Limited (20 per cent) and Marathon Oil Corporation (20 per cent). The AOSP includes the Muskeg River Mine, Jackpine Mine and Scotford Upgrader.
dcooper@edmontonjournal.com
© Copyright (c) The Edmonton Journal
More on CSS
CSS sounds like a fantastic technology - greenhouse gas reductions, meeting climate change goals and enabling enhanced oil recovery. Below is a video with more detail on how the whole process works.
CSS is recognized as a safe and effective method to reduce CO2 emissions in the atmosphere. Endorsement for this technology have come from numerous organizations, including the United Nations Intergovernmental Panel on Climate Change and the International Energy Agency.
CSS is recognized as a safe and effective method to reduce CO2 emissions in the atmosphere. Endorsement for this technology have come from numerous organizations, including the United Nations Intergovernmental Panel on Climate Change and the International Energy Agency.
Carbon Capture and Storage (CCS)
Carbon Capture and Storage (CCS) is something you have likely read in the posts that we have made on here. In this post, we talk more about what it is and the role it plays in the oil sands development.
Enhance Energy is currently building the world's largest carbon capture and storage project - the Alberta Carbon Trunk Line (ACTL). Needless to say, the ACTL will result in immediate job creation, the revitalization of the oil and gas industry and the provision of a CO2 management solution for Alberta's industrial development.
CSS is the separation and capture of CO2 from the atmospheric emissions of industrial processes and the transport and permanent storage of the CO2 in deep underground rock formations. It is a powerful tool for combating climate change. Here is a diagram depicting a typical CO2 storage scenario using the CCS model.
The ACTL pipeline will stretch 240km and will be capable of gathering, compressing and storing up to 14.6 million tonnes of CO2 per year at full capacity. Additionally, the stored CO2 will be injected into depleted oil reservoirs and result in the recovery of over 1 billion barrels of oil. The pipeline will begin in the Redwater area and move south through the province past Edmonton and all the way down to Lacombe.
Enhance Energy is currently building the world's largest carbon capture and storage project - the Alberta Carbon Trunk Line (ACTL). Needless to say, the ACTL will result in immediate job creation, the revitalization of the oil and gas industry and the provision of a CO2 management solution for Alberta's industrial development.
CSS is the separation and capture of CO2 from the atmospheric emissions of industrial processes and the transport and permanent storage of the CO2 in deep underground rock formations. It is a powerful tool for combating climate change. Here is a diagram depicting a typical CO2 storage scenario using the CCS model.
The ACTL pipeline will stretch 240km and will be capable of gathering, compressing and storing up to 14.6 million tonnes of CO2 per year at full capacity. Additionally, the stored CO2 will be injected into depleted oil reservoirs and result in the recovery of over 1 billion barrels of oil. The pipeline will begin in the Redwater area and move south through the province past Edmonton and all the way down to Lacombe.
What is bitumen?
Thus far, we have talked about the financial and social ramifications of the upgrader projects - how many jobs they will create, what is the project timeline, how much capital is required. But we haven't really learned about what exactly bitumen is and why it is so important to us.
Bitumen is a mixture of organic liquids that are highly viscous, black, sticky, entirely soluble in carbon disulfide and composed primarily of highly condensed polcyclic aromatic hydrocarbons. Naturally occurring or crude bitumen is a sticky, tar-like form of petroleum that is so thick and heavy that it has to be heated or diluted before it will flow.
Here are a couple of simple diagrams showing us the common uses of petroleum in our households and what the typical by-products of bitumen are.
Next, we have an intriguing video describing the bitumen production process. Thanks to CNRL for the great video.
Bitumen is a mixture of organic liquids that are highly viscous, black, sticky, entirely soluble in carbon disulfide and composed primarily of highly condensed polcyclic aromatic hydrocarbons. Naturally occurring or crude bitumen is a sticky, tar-like form of petroleum that is so thick and heavy that it has to be heated or diluted before it will flow.
Here are a couple of simple diagrams showing us the common uses of petroleum in our households and what the typical by-products of bitumen are.
Next, we have an intriguing video describing the bitumen production process. Thanks to CNRL for the great video.
More on BRIK
If you really want to get into the nitty-gritty of things, there are a series of agreements and papers on BRIK that can be referenced. They can be found below:
Agreement to Process - Schedules 1, 2, 4, 5, 6, 8, 10, 12
Agreement to Market - Schedules 3, 4
Industry Paper - BRIK Infrastructure and Bitumen Supply Availability
Discussion Paper - BRIK Physical Transfer Point & Delivery Location
Discussion Paper - Valuing Bitument for the BRIK Program
Agreement to Process - Schedules 1, 2, 4, 5, 6, 8, 10, 12
Agreement to Market - Schedules 3, 4
Industry Paper - BRIK Infrastructure and Bitumen Supply Availability
Discussion Paper - BRIK Physical Transfer Point & Delivery Location
Discussion Paper - Valuing Bitument for the BRIK Program
What is BRIK?
As promised, here is an in-depth description of BRIK or Bitumen Royalty-in-Kind. In Alberta, royalties are a share of production from resources the government owns on behalf of Albertans. The government has the option to take its royalty share either in cash or in kind. Currently, the government collects royalties from conventional crude oil production in kind and for other resources in cash.
So why BRIK for the oil sands? The decision to collect in kind was made in October 2007 as a way for the government to use its share of bitumen strategically in order to supply potential upgraders and refiners in Alberta and to then optimize its royalty share by marketing those volumes. It is estimated that by refining BRIK, Alberta will increase the value of the bitumen by $200 to $700 million depending on marker prices. Additionally, by refining the bitumen in Alberta, there will be an estimated 10,000 jobs created, roughly $100 million in provincial and property taxes, additional enhanced oil recovery royalties (from CSS injection) and reduced CO2 emissions to the atmosphere (also through CSS projects).
The article below from The Edmonton Journal explains in greater detail some of the fiscal benefits that come with implementing the BRIK initiative.
So why BRIK for the oil sands? The decision to collect in kind was made in October 2007 as a way for the government to use its share of bitumen strategically in order to supply potential upgraders and refiners in Alberta and to then optimize its royalty share by marketing those volumes. It is estimated that by refining BRIK, Alberta will increase the value of the bitumen by $200 to $700 million depending on marker prices. Additionally, by refining the bitumen in Alberta, there will be an estimated 10,000 jobs created, roughly $100 million in provincial and property taxes, additional enhanced oil recovery royalties (from CSS injection) and reduced CO2 emissions to the atmosphere (also through CSS projects).
The article below from The Edmonton Journal explains in greater detail some of the fiscal benefits that come with implementing the BRIK initiative.
BRIK will be a job builder, Alberta government says
Energy minister rejects criticism of royalty-in-kind program
This 3-D drawing depicts the new North West Upgrading plant, announced under the Alberta government’s BRIK program in February 2011.
Photograph by: Supplied, edmontonjournal.com
EDMONTON — Alberta’s signing of its first long-term bitumen refining contract in February could pave the way for more deals, as the province begins to collect its royalties in the actual tarry output from oilsands projects instead of cash.
At least that was Energy Minister Ron Liepert’s view, when he said “I’m optimistic as we move forward it will bring other opportunities down the road” to ensure at least 60 per cent of the oilsands output creates jobs and value-added products in Alberta.
While there has been criticism that the province is dabbling in the free market through its bitumen royalty in kind (BRIK) program, Liepert defended the move and challenged the perception of market intervention.
“This is the Crown’s share. All we are doing is entering into an agreement to have it refined locally rather than somewhere else,” Liepert said.
Ian MacGregor, chairman of North West Upgrading, said every major oil company upgrades and refines its bitumen production, either in Alberta or the U.S.
“There is only one producer who is not, and by 2025 the largest one will be the province (through its royalties). Alberta is making the same decision that every other producer is making,” he said.
“It is a good idea to get more money for your products.”
MacGregor recently confirmed the North West staff roster is growing quickly as the fledgling Calgary-based company hires dozens of staff, but “we still have a ton of engineering to finish.”
Although he had initially hoped that some field work could begin later this summer or fall, he now says that is unlikely.
“But we will be ready to go full speed in the spring, and get the underground utilities and other work completed next year.”
The large Korean-built reactor vessels, now in storage in Minnesota, must travel on frozen railbeds to the upgrader construction site.
“So that will be during the winter of 2012-2013. Those are key pieces for the upgrader,” he said.
Neil Shelly, executive director of Alberta’s Industrial Heartland, a group of local municipalities, says the BRIK program will allow the province to hedge its bets on its bitumen investment.
“If North West were open right now, the government would be banking some very good returns.”
More than half the $5 billion upgrader’s output will be diesel.
“If you look at what the price of bitumen is — about $55 to $60 a barrel — versus the price of diesel fuel of perhaps 90 cents a litre, well that works out to $154 to $160 a barrel for diesel. So the government is making an extra $100 a barrel selling into the market,” said Shelly.
Of course, the project is a huge shot in the arm for the region, with 3,000 jobs during each of the three-year construction cycles for each of the three proposed phases.
“That’s nine years of work, and we could get more companies coming in as well. But BRIK is not popular in some political circles, so if the political landscape changes anything could happen.”
Under BRIK, the province said it would make available 75,000 barrels per day of bitumen, with 37,500 bpd going to Phase 1 of the North West plant, and the balance going to Phase 2 if the first proves to be economic. Partner Canadian Natural Resources Ltd. will add 12,500 bpd to each phase.
When the diluent is added, the actual inflow will be 77,000 barrels of diluted bitumen. From this, the plant will produce 36,000 bpd of ultra-low-sulphur diesel (about 5.7 million litres per day), 18,000 bpd of naphtha and return 14,000 bpd of diluent.
The province could have a total of 400,000 bpd of BRIK bitumen available by 2030 as oilsands plants pay off construction costs and start to contribute the standard 25-per-cent royalty.
Analysts have said $5 billion for a plant to handle 50,000 bpd of bitumen works out to a rather expensive $100,000 per flowing barrel compared with standard upgraders.
But the North West project is unique, using a much cleaner gasifier process rather than traditional coking. This allows for the collection of carbon dioxide gas, giving its main product the lowest carbon footprint of any diesel fuel.
Under the 30-year deal between the province and North West/CNRL, the equity partners will be able to recoup their investment, pay operating costs and achieve a return on capital through tolls similar to those paid by pipeline users. Alberta expects to earn an extra $200 million to $700 million over the three decades by selling diesel rather than raw bitumen.
As the 75-per-cent supplier of bitumen, the province will pay three-quarters of the operating costs and receive three-quarters of the benefits, officials have said.
While Alberta has been criticized for its growing carbon dioxide emissions, the North West project will be the only one in the world to combine gasification technology with CO2 management, capturing 1.2 million tonnes of CO2 per phase, which will be sold to Enhance Energy Inc.’s Alberta Carbon Trunk Line for use in enhanced oil recovery in central Alberta.
Enhance will start with CO2 from the Agrium fertilizer plant adjacent to North West near Redwater, and add the upgrader’s gas by mid to late 2014. Enhance hopes other suppliers will eventually tap in.
North West’s contribution of CO2 was enough to get the pipeline project underway.
President Susan Cole noted her firm’s pipeline route travels east of Elk Island Park, but then swings westward, with an eye to the potential CO2 sources in the Wabamun area’s power plants.
“We’d certainly like Keephills 3,” she said, referring to the new coal-fired Capital Power/TransAlta plant that is part of the Project Pioneer’s carbon capture plan.
North West, a private company, has already spent $400 million on the site, equipment and engineering. Joint partner Canadian Natural will contribute $400 million, and the rest is being raised from investors. The balance of the capital cost — about $4 billion — will be bank-financed debt.
dcooper@edmontonjournal.com
At least that was Energy Minister Ron Liepert’s view, when he said “I’m optimistic as we move forward it will bring other opportunities down the road” to ensure at least 60 per cent of the oilsands output creates jobs and value-added products in Alberta.
While there has been criticism that the province is dabbling in the free market through its bitumen royalty in kind (BRIK) program, Liepert defended the move and challenged the perception of market intervention.
“This is the Crown’s share. All we are doing is entering into an agreement to have it refined locally rather than somewhere else,” Liepert said.
Ian MacGregor, chairman of North West Upgrading, said every major oil company upgrades and refines its bitumen production, either in Alberta or the U.S.
“There is only one producer who is not, and by 2025 the largest one will be the province (through its royalties). Alberta is making the same decision that every other producer is making,” he said.
“It is a good idea to get more money for your products.”
MacGregor recently confirmed the North West staff roster is growing quickly as the fledgling Calgary-based company hires dozens of staff, but “we still have a ton of engineering to finish.”
Although he had initially hoped that some field work could begin later this summer or fall, he now says that is unlikely.
“But we will be ready to go full speed in the spring, and get the underground utilities and other work completed next year.”
The large Korean-built reactor vessels, now in storage in Minnesota, must travel on frozen railbeds to the upgrader construction site.
“So that will be during the winter of 2012-2013. Those are key pieces for the upgrader,” he said.
Neil Shelly, executive director of Alberta’s Industrial Heartland, a group of local municipalities, says the BRIK program will allow the province to hedge its bets on its bitumen investment.
“If North West were open right now, the government would be banking some very good returns.”
More than half the $5 billion upgrader’s output will be diesel.
“If you look at what the price of bitumen is — about $55 to $60 a barrel — versus the price of diesel fuel of perhaps 90 cents a litre, well that works out to $154 to $160 a barrel for diesel. So the government is making an extra $100 a barrel selling into the market,” said Shelly.
Of course, the project is a huge shot in the arm for the region, with 3,000 jobs during each of the three-year construction cycles for each of the three proposed phases.
“That’s nine years of work, and we could get more companies coming in as well. But BRIK is not popular in some political circles, so if the political landscape changes anything could happen.”
Under BRIK, the province said it would make available 75,000 barrels per day of bitumen, with 37,500 bpd going to Phase 1 of the North West plant, and the balance going to Phase 2 if the first proves to be economic. Partner Canadian Natural Resources Ltd. will add 12,500 bpd to each phase.
When the diluent is added, the actual inflow will be 77,000 barrels of diluted bitumen. From this, the plant will produce 36,000 bpd of ultra-low-sulphur diesel (about 5.7 million litres per day), 18,000 bpd of naphtha and return 14,000 bpd of diluent.
The province could have a total of 400,000 bpd of BRIK bitumen available by 2030 as oilsands plants pay off construction costs and start to contribute the standard 25-per-cent royalty.
Analysts have said $5 billion for a plant to handle 50,000 bpd of bitumen works out to a rather expensive $100,000 per flowing barrel compared with standard upgraders.
But the North West project is unique, using a much cleaner gasifier process rather than traditional coking. This allows for the collection of carbon dioxide gas, giving its main product the lowest carbon footprint of any diesel fuel.
Under the 30-year deal between the province and North West/CNRL, the equity partners will be able to recoup their investment, pay operating costs and achieve a return on capital through tolls similar to those paid by pipeline users. Alberta expects to earn an extra $200 million to $700 million over the three decades by selling diesel rather than raw bitumen.
As the 75-per-cent supplier of bitumen, the province will pay three-quarters of the operating costs and receive three-quarters of the benefits, officials have said.
While Alberta has been criticized for its growing carbon dioxide emissions, the North West project will be the only one in the world to combine gasification technology with CO2 management, capturing 1.2 million tonnes of CO2 per phase, which will be sold to Enhance Energy Inc.’s Alberta Carbon Trunk Line for use in enhanced oil recovery in central Alberta.
Enhance will start with CO2 from the Agrium fertilizer plant adjacent to North West near Redwater, and add the upgrader’s gas by mid to late 2014. Enhance hopes other suppliers will eventually tap in.
North West’s contribution of CO2 was enough to get the pipeline project underway.
President Susan Cole noted her firm’s pipeline route travels east of Elk Island Park, but then swings westward, with an eye to the potential CO2 sources in the Wabamun area’s power plants.
“We’d certainly like Keephills 3,” she said, referring to the new coal-fired Capital Power/TransAlta plant that is part of the Project Pioneer’s carbon capture plan.
North West, a private company, has already spent $400 million on the site, equipment and engineering. Joint partner Canadian Natural will contribute $400 million, and the rest is being raised from investors. The balance of the capital cost — about $4 billion — will be bank-financed debt.
dcooper@edmontonjournal.com
© Copyright (c) The Edmonton Journal
NWU / CNRL Upgrader Part 4
This next article comes from the Saint City News out of St. Albert in August 2010.
From here, we fast forward to February 2011. In this press release from the Government of Alberta, the successful negotiation of the BRIK initiative with NWU / CNRL is announced.
Your Alberta Online also has an excellent video regarding the NWU upgrader and the $4 Billion commitment from the Alberta Government.
From here, we fast forward to February 2011. In this press release from the Government of Alberta, the successful negotiation of the BRIK initiative with NWU / CNRL is announced.
Your Alberta Online also has an excellent video regarding the NWU upgrader and the $4 Billion commitment from the Alberta Government.
NWU / CNRL Upgrader Part 3 - Big Money Is Pouring Into The Region
We return to our featured news releases.
We left off with a press release from May 18, 2010 in which the Alberta Government was getting set to begin negotiations. Here we have an additional press release regarding the start of negotiations.
We pick up a month later - June 13, 2010 when the following article appeared on Stockhouse.
MAJOR NEW TAILWIND FOR THE CANADIAN OIL SANDS
Big money is pouring into the region
The U.S. government is set to kill offshore drilling... and hand a gift to a niche group of energy producers. For more than a month, people all over the world have watched the Deepwater Horizon debacle develop into one of the worst environmental disasters of all time. BP, the oil giant operating the rig, has tried several methods to plug the hole. Thus far, none have worked. Its next step is to drill two "relief wells" on the sides of the existing well to intercept the oil. Once the oil is intercepted, the leak will be plugged. There's a high probability the relief wells will work. By August, the leak should be contained. However, looking ahead, I see terrible times for the offshore industry. That's great news for Canada's oil sands. Let me explain... On May 27, the government suspended offshore exploratory drilling for at least six months. After that ban is lifted, costs will surge as new mandatory safety measures are implemented. Oil producers may have to drill relief wells next to existing wells, also resulting in increased costs. Offshore drillers will see huge tax hikes. Insurance for rigs will skyrocket. It may not be worth it (based on costs and politics) for Big Oil to allocate tens of millions of dollars into offshore drilling. It'll be too risky to put money to work in this space. And for this to happen in the U.S., it's especially problematic... According to the Energy Information Administration (EIA), the U.S. consumes 20% of the world's oil. It only has 2% of the world's reserves, including deposits in the Gulf of Mexico. The U.S. is the largest consumer of oil in the world, using about 6.8 billion barrels annually. Earlier this year, the EIA predicted expanded areas for U.S. offshore drilling will yield up to 63 billion barrels of oil. With the new moratorium in place, we know that drilling won't happen for a long time. That means more than nine years of U.S. oil production could be in jeopardy (63 billion barrels/6.8 billion barrels a year = 9.2 years) due to an increase in offshore regulation. To feed our appetite for oil, we must tap another source. Sure, we could import more oil from the Middle East. We can also try to increase imports from Mexico and Venezuela. However, the easiest solution is to tap reserves in Canada's oil sands. Most Americans don't know it, but Canada is already our largest supplier of foreign oil. They have monstrous deposits trapped in layers of silt and sand. Canada's oil sands region holds over 173 billion barrels of oil reserves... second in the world behind Saudi Arabia. That oil is right on our doorstep, in a country much more politically stable than our other oil suppliers (Mexico, Venezuela, Nigeria, and the Middle East). We already have pipelines in place to transport oil into the U.S. And it's cheaper to get oil from the oil sands than to get it from deepwater oil areas. But like most of the world's large oil patches, anyone interested here will have to compete with China... On May 13, a subsidiary of China Investment Corporation (CIC) gave Penn West Energy Partners $1.8 billion to develop its oil sands assets in Alberta. This followed two other major deals over the past 12 months. Sinopec and PetroChina, two of the largest oil producers in China, invested a total of $6.5 billion in Canadian companies Athabasca Oil Sands and Syncrude. So we've got a huge headwind for offshore oil... and a tailwind from China for the oil sands.
Both these trends will benefit Canada's large-cap oil producers like Suncor (NYSE: SU) and Petro-Canada (NYSE: PCZ). But as someone who analyzes smaller, more volatile, under-$10 stocks, I'm more interested in infrastructure providers. The big players need these companies to build roads, remove and process waste, and provide labor. Infrastructure firms that have been in the oil sands region for awhile and have good ties with the government are your best bets.
Disclosure: The author does not hold positions in any of the securities mentioned
Copyright 2010 Stockhouse
We left off with a press release from May 18, 2010 in which the Alberta Government was getting set to begin negotiations. Here we have an additional press release regarding the start of negotiations.
We pick up a month later - June 13, 2010 when the following article appeared on Stockhouse.
MAJOR NEW TAILWIND FOR THE CANADIAN OIL SANDS
Big money is pouring into the region
The U.S. government is set to kill offshore drilling... and hand a gift to a niche group of energy producers. For more than a month, people all over the world have watched the Deepwater Horizon debacle develop into one of the worst environmental disasters of all time. BP, the oil giant operating the rig, has tried several methods to plug the hole. Thus far, none have worked. Its next step is to drill two "relief wells" on the sides of the existing well to intercept the oil. Once the oil is intercepted, the leak will be plugged. There's a high probability the relief wells will work. By August, the leak should be contained. However, looking ahead, I see terrible times for the offshore industry. That's great news for Canada's oil sands. Let me explain... On May 27, the government suspended offshore exploratory drilling for at least six months. After that ban is lifted, costs will surge as new mandatory safety measures are implemented. Oil producers may have to drill relief wells next to existing wells, also resulting in increased costs. Offshore drillers will see huge tax hikes. Insurance for rigs will skyrocket. It may not be worth it (based on costs and politics) for Big Oil to allocate tens of millions of dollars into offshore drilling. It'll be too risky to put money to work in this space. And for this to happen in the U.S., it's especially problematic... According to the Energy Information Administration (EIA), the U.S. consumes 20% of the world's oil. It only has 2% of the world's reserves, including deposits in the Gulf of Mexico. The U.S. is the largest consumer of oil in the world, using about 6.8 billion barrels annually. Earlier this year, the EIA predicted expanded areas for U.S. offshore drilling will yield up to 63 billion barrels of oil. With the new moratorium in place, we know that drilling won't happen for a long time. That means more than nine years of U.S. oil production could be in jeopardy (63 billion barrels/6.8 billion barrels a year = 9.2 years) due to an increase in offshore regulation. To feed our appetite for oil, we must tap another source. Sure, we could import more oil from the Middle East. We can also try to increase imports from Mexico and Venezuela. However, the easiest solution is to tap reserves in Canada's oil sands. Most Americans don't know it, but Canada is already our largest supplier of foreign oil. They have monstrous deposits trapped in layers of silt and sand. Canada's oil sands region holds over 173 billion barrels of oil reserves... second in the world behind Saudi Arabia. That oil is right on our doorstep, in a country much more politically stable than our other oil suppliers (Mexico, Venezuela, Nigeria, and the Middle East). We already have pipelines in place to transport oil into the U.S. And it's cheaper to get oil from the oil sands than to get it from deepwater oil areas. But like most of the world's large oil patches, anyone interested here will have to compete with China... On May 13, a subsidiary of China Investment Corporation (CIC) gave Penn West Energy Partners $1.8 billion to develop its oil sands assets in Alberta. This followed two other major deals over the past 12 months. Sinopec and PetroChina, two of the largest oil producers in China, invested a total of $6.5 billion in Canadian companies Athabasca Oil Sands and Syncrude. So we've got a huge headwind for offshore oil... and a tailwind from China for the oil sands.
Both these trends will benefit Canada's large-cap oil producers like Suncor (NYSE: SU) and Petro-Canada (NYSE: PCZ). But as someone who analyzes smaller, more volatile, under-$10 stocks, I'm more interested in infrastructure providers. The big players need these companies to build roads, remove and process waste, and provide labor. Infrastructure firms that have been in the oil sands region for awhile and have good ties with the government are your best bets.
Disclosure: The author does not hold positions in any of the securities mentioned
Copyright 2010 Stockhouse
NWU / CNRL Upgrader Part 2
The next in our series of featured articles and news releases jumps forward to May 18, 2010. In this NWU press release, it is announced that the Government of Alberta is poised to engage NWU company executives in negotiations regarding its BRIK (bitumen royalty-in-kind) initiative. Follow this link for further reading.
This fact sheet also provides some interesting information about the upgrader.
Some of you may be wondering what this BRIK initiative is all about. Rest assured, it will be discussed in further detail in a following post.
For your further viewing pleasure, we have this video about the Oil Sands and upgraders of Alberta.
This fact sheet also provides some interesting information about the upgrader.
Some of you may be wondering what this BRIK initiative is all about. Rest assured, it will be discussed in further detail in a following post.
For your further viewing pleasure, we have this video about the Oil Sands and upgraders of Alberta.
NWU / CNRL Upgrader Part 1
This project was covered briefly in a previous post as part of our "ongoing projects" initiative. However, as it is perhaps the largest and highest profile project ongoing in Redwater right now, we will devote the next few posts solely to this project and present a series of articles and videos from local news releases concerning this undertaking. The first article dates back to January 28, 2010 when the partnership between NWU and CNRL was first announced. NORTHWEST UPGRADING INC., CANADIAN NATURAL RESOURCES LIMITED ANNOUNCE AGREEMENT.
Below is the proposed schedule of activities for this project.
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Below is the proposed schedule of activities for this project.
Thursday 16 June 2011
Did you know?
A few interesting facts and trivia tidbits about Redwater.
1 - The area where Redwater currently stands was first settled in the 1900's by Ukrainian settlers. Within a decade, the English and French joined them.
2 - The name Redwater is a reference to the nearby Redwater River, an ochre-colored tributary that runs into the North Sasketchewan River.
3 - The first settlement was founded on September 7, 1906. However, in 1919, it was relocated to its present location and also registered as a hamlet. On December 31, 1941 Redwater waws incorporated as a village and on November 25, 1950 as a town.
Was that enough to whet your appetites? Here is a very well done video on the town of Redwater by Standing Stone. As is stated in the video, Redwater is poised to become the next Alberta boomtown.
1 - The area where Redwater currently stands was first settled in the 1900's by Ukrainian settlers. Within a decade, the English and French joined them.
2 - The name Redwater is a reference to the nearby Redwater River, an ochre-colored tributary that runs into the North Sasketchewan River.
3 - The first settlement was founded on September 7, 1906. However, in 1919, it was relocated to its present location and also registered as a hamlet. On December 31, 1941 Redwater waws incorporated as a village and on November 25, 1950 as a town.
Was that enough to whet your appetites? Here is a very well done video on the town of Redwater by Standing Stone. As is stated in the video, Redwater is poised to become the next Alberta boomtown.
Wednesday 15 June 2011
Redwater Map
Some of you may be wondering where exactly Redwater is in relation to Edmonton, Fort Saskatchewan, Sherwood Park and the rest of Alberta in general. Well, below is a map of the Redwater area. The map has also been hotlinked above if you ever need to refer to it again.
View Larger Map
View Larger Map
Tuesday 14 June 2011
ANNOUNCEMENT!!!
On Tuesday, June 21, there will be an industry-hosted event at the Shaw Conference Centre in Edmonton. There will be panel discussions and presentations on topics including Alberta in the world context, oil sands production, and many other topics of interest.
The keynote speaker will be Suncor Energy CEO Rick George. If you have any questions or concerns or are simply interested in learning more about oil sands in Alberta, this is a fantastic opportunity. Registration is required. For more information including an agenda, as well as directions to the Shaw Conference Centre and instructions on how to register, please follow THIS LINK.
The keynote speaker will be Suncor Energy CEO Rick George. If you have any questions or concerns or are simply interested in learning more about oil sands in Alberta, this is a fantastic opportunity. Registration is required. For more information including an agenda, as well as directions to the Shaw Conference Centre and instructions on how to register, please follow THIS LINK.
Real Estate in Redwater
Redwater has seen modest growth in the past few years as businesses and corporations have moved into the area to begin operations. It is likely that this growth will continue, but at an accelerated pace, as these operations continue to grow and generate offshoot industries.
At present, housing prices are still quite modest compared to other towns nearby. It is a perfect opportunity to invest in the Redwater area.
One of the most comprehensive ways to compare real estate trending and pricing between regions is to look at the price per square foot of living space. Also included below are low and high prices as well as average prices.
As you can see, Redwater real estate is ripe for the picking. Other towns and cities in the region have already seen significant growth in property values and with ongoing and future announcements of operations in the area, Redwater property will be following suit.
At present, housing prices are still quite modest compared to other towns nearby. It is a perfect opportunity to invest in the Redwater area.
One of the most comprehensive ways to compare real estate trending and pricing between regions is to look at the price per square foot of living space. Also included below are low and high prices as well as average prices.
| Minimum | Maximum | Average | Price / sq foot | |
| Redwater | $79,900 | $599,900 | $321,354 | $235 |
| Edmonton | $10,000 | $4,517,000 | $392,931 | $276 |
| Fort Saskatchewan | $93,900 | $799,900 | $343,802 | $250 |
| Sherwood Park | $147,500 | $1,345,000 | $439,406 | $275 |
As you can see, Redwater real estate is ripe for the picking. Other towns and cities in the region have already seen significant growth in property values and with ongoing and future announcements of operations in the area, Redwater property will be following suit.
Alberta Sulphur Terminals Ltd (Hazco)
Company Overview:
Alberta Sulphur Terminals Ltd. is a division of Hazco, a company specializing in environmental and decommissioning solutions.
Project Description:
Sulphur forming and shipping facility
Capital Cost:
$30 Million
Status:
Regulatory approval was obtained in August 2009. Construction of the facility will depend on the timing and construction of upgraders in the area.
Alberta Sulphur Terminals Ltd. is a division of Hazco, a company specializing in environmental and decommissioning solutions.
Project Description:
Sulphur forming and shipping facility
Capital Cost:
$30 Million
Status:
Regulatory approval was obtained in August 2009. Construction of the facility will depend on the timing and construction of upgraders in the area.
Aux Sable
Company Overview:
Aux Sable Canada is part of the Alliance Pipeline system that was developed to manage the natural gas liquids business associated with the Alliance Pipeline. Aux Sable Canada is owned by Enbridge and Veresen.
Project Description:
Off-gas processing facility.
Status:
The supply agreement was signed with Shell Canada and the facility is anticipated to be in operation by mid-2011.
Aux Sable Canada is part of the Alliance Pipeline system that was developed to manage the natural gas liquids business associated with the Alliance Pipeline. Aux Sable Canada is owned by Enbridge and Veresen.
Project Description:
Off-gas processing facility.
Status:
The supply agreement was signed with Shell Canada and the facility is anticipated to be in operation by mid-2011.
Fort Hills Energy Ltd Partnership
Company Overview:
The Fort Hills Energy Ltd Partnership is a joint venture between Suncor, Total Energy Services and Teck Cominco.
Project Description:
350,000 barrel per day bitumen upgrader
Status:
The project has received all necessary regulatory approvals from the Energy Resources Conservation Board and from Alberta Environment. Future construction is dependant on the outcome of a review that is currently underway at Suncor regarding the timing of their bitumen extraction and upgrading assets.
The Fort Hills Energy Ltd Partnership is a joint venture between Suncor, Total Energy Services and Teck Cominco.
Project Description:
350,000 barrel per day bitumen upgrader
Status:
The project has received all necessary regulatory approvals from the Energy Resources Conservation Board and from Alberta Environment. Future construction is dependant on the outcome of a review that is currently underway at Suncor regarding the timing of their bitumen extraction and upgrading assets.
Keyera
Company Overview:
Keyera is one of the largest independant natural gas and natural gas liquids midstream businesses in western Canada.
Project Description:
Pipeline to connect Keyera's Edmonton logistics terminal and the Keyera-operated Fort Saskatchewan fractionation and storage facility.
Status:
Current in the regulatory process.
Keyera is one of the largest independant natural gas and natural gas liquids midstream businesses in western Canada.
Project Description:
Pipeline to connect Keyera's Edmonton logistics terminal and the Keyera-operated Fort Saskatchewan fractionation and storage facility.
Status:
Current in the regulatory process.
North West Redwater Partnership
This is a joint venture between North West Upgrading Inc. and Canadian Natural Resources Limited. Each company holds a 50% stake.
Company Overview:
North West Upgrading Inc is a private, Alberta-based company that was founded in 2004 by a group of Albertans who shared a vision to build a world class bitumen refining business that would allow them to maximize the value of bitumen resources in a responsible and sustainable manner.
Canadian Natural Resources Limited is one of the largest independant crude oil and natural gas producers in the world.
Project Description:
150,000 barrel per day bitumen upgrader and diesel refinery (to be completed over 3 phases)
Capital Cost:
$5 Billion for phase 1, which will produce 50,000 barrels per day
Status:
The Bitumen Royalty in Kind was signed in February, 2011 with the Alberta Government, resulting in accelerated engineering and design work. A target of late 2011 or early 2012 has been set for the sanctioning of the first phase. Currently, on-site work is minimal and includes only basic site preparation and other limited activities. This is expected to continue for the remainder of this year until the project is officially sanctioned. At that point, significant on-site work is expected to commence - most likely in 2012 once the site is clear of snow and mud. It is planned for the facility to be operational in 2014 with phases 2 and 3 to follow.
Company Overview:
North West Upgrading Inc is a private, Alberta-based company that was founded in 2004 by a group of Albertans who shared a vision to build a world class bitumen refining business that would allow them to maximize the value of bitumen resources in a responsible and sustainable manner.
Canadian Natural Resources Limited is one of the largest independant crude oil and natural gas producers in the world.
Project Description:
150,000 barrel per day bitumen upgrader and diesel refinery (to be completed over 3 phases)
Capital Cost:
$5 Billion for phase 1, which will produce 50,000 barrels per day
Status:
The Bitumen Royalty in Kind was signed in February, 2011 with the Alberta Government, resulting in accelerated engineering and design work. A target of late 2011 or early 2012 has been set for the sanctioning of the first phase. Currently, on-site work is minimal and includes only basic site preparation and other limited activities. This is expected to continue for the remainder of this year until the project is officially sanctioned. At that point, significant on-site work is expected to commence - most likely in 2012 once the site is clear of snow and mud. It is planned for the facility to be operational in 2014 with phases 2 and 3 to follow.
Shell Canada - Upgrader I (Expansion)
This is a second major operation that Shell Canada has in the Redwater area.
Company Overview:
Shell has been operating in Canada since 1911 and is one of the country's largest integrated oil and gas companies.
Project Description:
100,000 barrel per day expansion to the existing facility
Status:
It is in the final stages of construction. The commissioning and start up of the units is anticipated in late 2010 and early 2011.
Company Overview:
Shell has been operating in Canada since 1911 and is one of the country's largest integrated oil and gas companies.
Project Description:
100,000 barrel per day expansion to the existing facility
Status:
It is in the final stages of construction. The commissioning and start up of the units is anticipated in late 2010 and early 2011.
Monday 13 June 2011
Williams Energy / Provident Energy
Company Overview:
Provident Energy owns and operates high quality midstream assets including NGL extraction, fractionantion, storage, transportation and marketing. Provident is based in Calgary and accesses markets across North America.
Williams Energy is the only processor of oil sands off-gas in the world and the owner of the only fractionator capable of processing off-gas liquids in Canada.
Project Description:
Modify the existing fractionation and storage facility in Redwater to allow for the extraction of ethane/ethylene as a marketable product and transport to customers via existing pipelines.
Status:
The project is currently in the regulatory process. Following final sanctioning of the project by Williams and pending regulatory approvals, site construction is set to being in 2012 with the facility operational by November 2012.
Provident Energy owns and operates high quality midstream assets including NGL extraction, fractionantion, storage, transportation and marketing. Provident is based in Calgary and accesses markets across North America.
Williams Energy is the only processor of oil sands off-gas in the world and the owner of the only fractionator capable of processing off-gas liquids in Canada.
Project Description:
Modify the existing fractionation and storage facility in Redwater to allow for the extraction of ethane/ethylene as a marketable product and transport to customers via existing pipelines.
Status:
The project is currently in the regulatory process. Following final sanctioning of the project by Williams and pending regulatory approvals, site construction is set to being in 2012 with the facility operational by November 2012.
Sunday 12 June 2011
Shell Quest Carbon Capture and Storage (CSS) Project
Shell has multiple major projects ongoing in the region. This particular post deals with the CSS Project.
Company Overview:
Shell has been operating in Canada since 1911 and is one of the country's largest integrated oil and gas companies.
Project Description:
Shell Quest CSS is fully integrated and would be capable of capturing, transporting, injecting and storing carbon dioxide. Beginning around 2015, more than 1 million tonnes of CO2 per year would be captured from the Scotford Upgrader. The CO2 would then be transported via pipeline north of the Scotford Complex and stored permanently more than 2km under thick layers of impermeable geological formations.
Capital Cost:
$1.35 Billion
Status:
Shell submitted a regulatory application in November of 2010. The venture is aiming for commissioning and injection to begin in 2015.
Company Overview:
Shell has been operating in Canada since 1911 and is one of the country's largest integrated oil and gas companies.
Project Description:
Shell Quest CSS is fully integrated and would be capable of capturing, transporting, injecting and storing carbon dioxide. Beginning around 2015, more than 1 million tonnes of CO2 per year would be captured from the Scotford Upgrader. The CO2 would then be transported via pipeline north of the Scotford Complex and stored permanently more than 2km under thick layers of impermeable geological formations.
Capital Cost:
$1.35 Billion
Status:
Shell submitted a regulatory application in November of 2010. The venture is aiming for commissioning and injection to begin in 2015.
Total E&P Energy
Company Overview:
Total E&P Canada is a Calgary-based energy company focused on oil and gas exploration and production and upgrading in the Athabasca Oil Sands region of Alberta.
Project Description:
Heartland Area Redwater Project Phase II (HARP) - this is a two stage demonstration project designed to validate the suitability of the Redwater reef for sequestration of CO2.
Total E&P Canada is a Calgary-based energy company focused on oil and gas exploration and production and upgrading in the Athabasca Oil Sands region of Alberta.
Project Description:
Heartland Area Redwater Project Phase II (HARP) - this is a two stage demonstration project designed to validate the suitability of the Redwater reef for sequestration of CO2.
Williams Energy Services
In my previous post, I mentioned some corporations that had operations in the Redwater area. In this and the following posts, I will include further detail into each of those companies and their current major activities.
We start with Williams Energy Services.
Company Overview:
Williams is the only processor of oil sands off-gas in the world and the owner of the only fractionator capable of processing off-gas liquids in Canada.
Above: Snapshot of the Williams' facility in Redwater
Project Description:
12 inch pipeline to transport high vapour pressure liquids from Fort McMurray to Sturgeon County.
Status:
Application was submitted to the Energy Resources Conservation Board in June 2009. The regulatory review was completed in 2010 and the pipeline is expected to be operational by 2012.
We start with Williams Energy Services.
Company Overview:
Williams is the only processor of oil sands off-gas in the world and the owner of the only fractionator capable of processing off-gas liquids in Canada.
Above: Snapshot of the Williams' facility in Redwater
Project Description:
12 inch pipeline to transport high vapour pressure liquids from Fort McMurray to Sturgeon County.
Status:
Application was submitted to the Energy Resources Conservation Board in June 2009. The regulatory review was completed in 2010 and the pipeline is expected to be operational by 2012.
Industry in Redwater
Located only 5km north of Alberta's Industrial Heartland, it is not surprising that Redwater is home to many businesses and companies, ranging from small family-owned businesses to large multi-national corporations. To date, Redwater is home to 150 businesses and counting.
Among the more prominent corporations calling the Redwater area home are:
1 - Agrium Inc - a major retail supplier of agricultural products and services in North and South America. Agrium has over 6,600 employees worldwide and has an annual revenue of approximately $10 billion USD. As an added distinction, it has been named as one of Canada's Top 100 Employers as well as one of Alberta's Top 50 Employers for several years in a row.
2 - DOW Chemical Canada ULC - the second largest chemical manufacturer in the world by revenue, it is a provider of plastics, chemicals and agricultural products. Employing more than 46,000 people worldwide, it has an annual revenue of approximately $53.65 billion USD.
3 - Shell - with operations in over 90 countries, Shell produces around 3.1 million barrels of oil per day. According to Forbes Magazine, it is the second largest energy company and fifth largest company in the world. It's annual revenues total approximately $368 billion USD and it employs over 100,000 people worldwide.
Other companies also in operation in the area include:
Air Liquide Canada Inc.
Aux Sable Canada
BP Canada Energy Company
Enbridge Pipelines Inc.
Evonik Degussa Canada Inc.
Gulf Chemicals & Metallurgical Corporation
Hazco Environmental Services
Keyera Energy
Kinder Morgan (Terasen) Heartland Terminal
Marsulex Inc.
MEGlobal Canada Inc.
North West Upgrading Inc.
Praxair Canada Inc.
Provident Energy Inc.
Sherritt International Corp.
Sulzer Metco (Canada) Inc.
Suncor
Total E&P Canada Ltd.
Umicore
Among the more prominent corporations calling the Redwater area home are:
1 - Agrium Inc - a major retail supplier of agricultural products and services in North and South America. Agrium has over 6,600 employees worldwide and has an annual revenue of approximately $10 billion USD. As an added distinction, it has been named as one of Canada's Top 100 Employers as well as one of Alberta's Top 50 Employers for several years in a row.
2 - DOW Chemical Canada ULC - the second largest chemical manufacturer in the world by revenue, it is a provider of plastics, chemicals and agricultural products. Employing more than 46,000 people worldwide, it has an annual revenue of approximately $53.65 billion USD.
3 - Shell - with operations in over 90 countries, Shell produces around 3.1 million barrels of oil per day. According to Forbes Magazine, it is the second largest energy company and fifth largest company in the world. It's annual revenues total approximately $368 billion USD and it employs over 100,000 people worldwide.
Other companies also in operation in the area include:
Air Liquide Canada Inc.
Aux Sable Canada
BP Canada Energy Company
Enbridge Pipelines Inc.
Evonik Degussa Canada Inc.
Gulf Chemicals & Metallurgical Corporation
Hazco Environmental Services
Keyera Energy
Kinder Morgan (Terasen) Heartland Terminal
Marsulex Inc.
MEGlobal Canada Inc.
North West Upgrading Inc.
Praxair Canada Inc.
Provident Energy Inc.
Sherritt International Corp.
Sulzer Metco (Canada) Inc.
Suncor
Total E&P Canada Ltd.
Umicore
Redwater History
As home to some of the best soil in Alberta, Redwater started as a small farming community in 1906. However, this all changed in 1948 with the discovery of oil in the area, changing the tiny hamlet of about 160 into a booming town of over 4,000 residents. This occurred at the peak of the oil boom in the 1950's. The population has since declined to around 2,000.
Redwater is located 52km north of Edmonton on Highway 38 in Sturgeon County, close enough to the City of Champions for all its residents' more exotic needs while still offering the peace and serenity of rural living. The land area of the town is a mere 7.95 square kilometers. It is home to a large health centre, several health clinics, a dentist, ambulance services, a volunteer fire department, an elementary school (Ochre Park School), a high school (Redwater High School), a 9-hole grass green golf course, hardware stores, a grocery store and many other thriving shops and businesses.
The population in Redwater has been slowly but steadily growing over the past 10 years as existing industries continue to expand and new offshoot industries settle into the area.
Redwater is located 52km north of Edmonton on Highway 38 in Sturgeon County, close enough to the City of Champions for all its residents' more exotic needs while still offering the peace and serenity of rural living. The land area of the town is a mere 7.95 square kilometers. It is home to a large health centre, several health clinics, a dentist, ambulance services, a volunteer fire department, an elementary school (Ochre Park School), a high school (Redwater High School), a 9-hole grass green golf course, hardware stores, a grocery store and many other thriving shops and businesses.
The population in Redwater has been slowly but steadily growing over the past 10 years as existing industries continue to expand and new offshoot industries settle into the area.
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