Petroleum production in Canada is a major industry which is important to the economy of North America. Canada is the seventh largest oil producing country in the world. In 2008 it produced an average of 438,000 cubic metres per day (2,750,000 bbl/d) of crude oil, crude bitumen and natural gas condensate. Of that amount, 45% was conventional crude oil, 49.5% was bitumen from oil sands, and 5.5% was condensate from natural gas wells.[1] Most of Canadian petroleum production, approximately 283,000 cubic metres per day (1,780,000 bbl/d), was exported, almost all of it to the United States.[2] Canada is the largest single source of oil imports into the United States.
The petroleum industry in Canada is also referred to as the Canadian "Oil Patch"; the term refers especially to upstream operations (exploration and production of oil and gas), and to a lesser degree to downstream operations (refining, distribution, and selling of oil and gas products). In 2005, almost 25,000 new oil wells were spud (drilled) in Canada. Daily, over 100 new wells are spud in the province of Alberta alone [3].
Contents
1 History
2 Divisions
2.1 Alberta
2.2 British Columbia
2.3 Manitoba
2.4 Saskatchewan
2.5 Northern Canada (onshore)
2.6 Northern Canada (offshore)
2.7 Eastern Canada (onshore)
2.8 Eastern Canada (offshore)
3 Major players
4 Long-term outlook
5 See also
5.1 Oil fields of Canada
6 References
7 External links
History
Main article: History of the petroleum industry in Canada
The Canadian petroleum industry developed in parallel with that of the United States. The first oil well in Canada was dug by hand (rather than drilled) in 1858 by James Miller Williams near his asphalt plant at Oil Springs, Ontario. At a depth of 20 metres (66 ft) he struck oil, one year before "Colonel" Edwin Drake drilled the first oil well in the United States.[4] Williams later went on to found "The Canadian Oil Company" which qualified as the world’s first integrated oil company.
Petroleum production in Ontario expanded rapidly, and practically every significant producer became his own refiner. By 1864, 20 refineries were operating in Oil Springs and seven in Petrolia, Ontario. However, Ontario's status as an important oil producer did not last long. By 1880 Canada was a net importer of oil from the United States.
Canada's unique geography, geology, resources and patterns of settlement have been key factors in the history of Canada. The development of the petroleum sector helps illustrate how they have helped make the nation quite distinct from her neighbour to the south.
Divisions
Most exploration and production occurs in Alberta, with a significant number of operations in British Columbia—particularly in winter—and consistent activity in Saskatchewan. Drilling from large offshore platforms occurs on the Newfoundland continental shelf.
Alberta
Drilling rig in northern Alberta
Oil extraction near Drayton ValleyAlberta is the largest producer of conventional crude oil, synthetic crude, natural gas and gas products in Canada. Two of the largest producers of petrochemicals in North America are located in central and north central Alberta. In both Red Deer and Edmonton, world class polyethylene and vinyl manufacturers produce products shipped all over the world, and Edmonton's oil refineries provide the raw materials for a large petrochemical industry to the east of Edmonton. There are hundreds of small companies in Alberta dedicated to providing all sorts of services to this industry—from drilling to well maintenance, pipeline maintenance to seismic exploration.
The Athabasca Oil Sands (previously known as the Athabasca Tar Sands) have estimated oil reserves in excess of that of the rest of the world, estimated to be 1.6 trillion barrels (254 km³). With the advancement of extraction methods, bitumen and economical synthetic crude are produced at costs nearing that of conventional crude. This technology grew and developed in Alberta. Many companies employ both conventional strip mining and non-conventional methods to extract the bitumen from the Athabasca deposit. With current technology, only 315 billion barrels (50 km³) are recoverable. Entire towns, like Fort McMurray, have grown up entirely because of the large multinational corporations which have taken on the task of oil production.
While Edmonton is considered the pipeline junction, manufacturing, chemical processing, research and refining centre of the province, Calgary is known for its senior and junior oil company head offices.
Major oil fields are found in southeast Alberta (Brooks, Medicine Hat, Lethbridge), northwest (Grande Prairie, High Level, Rainbow Lake, Zama), central (Caroline, Red Deer), and northeast (Athabasca Oil Sands)
Structural regions include: Foothills, Greater Arch, Deep Basin.
Oil and gas activity is regulated by the Alberta Energy Resources Conservation Board (ERCB)(Formerly the Energy and Utility Board (EUB))[5].
[edit] British Columbia
Drilling rig in northern British ColumbiaDrilling for gas and oil in the Peace Country of north-eastern British Columbia, around Fort Nelson (Greater Sierra oil field), Fort St. John (Pink Mountain, Border Ring) and Dawson Creek
Oil and gas activity is regulated by the Oil and Gas Commission (OGC)[6].
Manitoba
A few rigs drilling for gas in southern Manitoba
Saskatchewan
Mostly shallow gas wells in southwestern Saskatchewan (Hatton, Cypress Hill) and the southeast (Lougheed, Weir Hill), heavy oil extraction around Lloydminster, oil wells around Weyburn.
Oil and gas activity is regulated by the Saskatchewan Industry and Resources (SIR) [7].
Northern Canada (onshore)
Drilling for oil in the Mackenzie Delta by Petro-Canada
Northern Canada (offshore)
Production in the Beaufort Sea off the Mackenzie Delta.
Sporadic drilling along the continental shelf of the Beaufort Sea.
Eastern Canada (onshore)
Sporadic drilling in southern Ontario by Talisman Energy Inc.
Sporadic drilling in western Newfoundland
Sporadic drilling in northern Nova Scotia and western Cape Breton Island
Sporadic drilling in northern and eastern Prince Edward Island
Production of natural gas at the McCully Field in southern New Brunswick, connected to the Maritimes and Northeast Pipeline
Eastern Canada (offshore)
Offshore oil drilling and production at Hibernia, Terra Nova, and White Rose fields off the coast of Newfoundland
Offshore gas drilling and production on Sable Island fields off the coast of Nova Scotia
Sporadic drilling along continental shelf off Nova Scotia.
Sporadic drilling in Laurentian Fan at southern end of Cabot Strait
Sporadic drilling in eastern Northumberland Strait
Major players
The country's four largest integrated refiners are Imperial Oil, Husky Energy, Petro-Canada, and Suncor Energy. In 2007 Canada's four biggest oil companies brought in record profits of $11.75 billion, up 10 percent from $10.72 billion in 2006. Revenues for the Big Four climbed to $80 bilion from about $72 billion in 2006. The numbers exclude Shell Canada and ConocoPhillips Canada, two private subsidiaries that produced almost 500,000 barrels per day in 2006.[8]
EnCana Corporation
Canadian Natural Resources Limited
Husky Energy Inc.
ConocoPhillips
Talisman Energy Inc.
Devon Canada Corporation
Suncor Energy
Cenovus Energy
Long-term outlook
Oil Production In North America Canadian conventional oil production peaked in 1973, but oil sands production is forecast to increase to at least 2020
US oil production (crude oil only) and Hubbert high estimate.
Mexican production peaked in 2004 and is now in decline
Broadly speaking Canadian oil production (via standard deep drilling) peaked in the mid-1970s, but due to the new offshore basins being exploited in Atlantic Canada and the boom of the Alberta Tar Sands overall production will not peak until the 2020s.
See also
Canada portal
Book:Canada
Books are collections of articles that can be downloaded or ordered in print.
These topics are related to offshore or onshore oil and related gas production in Canada
History of the petroleum industry in Canada
List of Petroleum Companies in Canada
Peak Oil an economic condition of oil production that Canada reached in the late 1970s
Peak Gas, related to Peak Oil
the North American Free Trade Agreement (NAFTA) has a clause in it relating to oil and gas export celinge that may force Canada to abandon the treaty to keep its own economy functioning
Oil fields of Canada
These oil fields are economically important to the Canadian economy, either in the present or historically
Athabasca Oil Sands, Alberta
Hibernia Oil Platform
Terra Nova Oil Field
White Rose oil field
Hamburg oil field, Alberta
References
1.^ "Estimated Production of Canadian Crude Oil and Equivalent". National Energy Board. 2009. http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/stmtdprdctn-eng.html. Retrieved 2009-01-27.
2.^ "Total Crude Oil Exports (m3 and bbl) - Annual". National Energy Board of Canada. 2009. http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/ttlcrdlxprt-eng.html. Retrieved 2009-01-27.
3.^ Canadian Rig Locator
4.^ "Six Historical Events in the First 100 Years of Canada's Petroleum Industry". Petroleum Historical Society of Canada. 2009. http://www.petroleumhistory.ca/history/wells.html.Retrieved 2009-01-27.
5.^ Alberta Energy Resources Conservation Board (ERCB)
6.^ British Columbia Oil and Gas Commission (OGC)
7.^ Saskatchewan Industry and Resources (SIR)
8.^ Vancouver Sun. Record Profits for Canada's big oil companies
Canadian Wellsite "Homepage of the Canadian Oilpatch"