Petroleum production in Canada
Article by jekky
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. Williams later went on to found the “The Canadian Oil Company” which qualified as the world 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 Columbiaarticularly in winternd consistent activity in Saskatchewan. Drilling from large offshore platforms occurs on the Newfoundland continental shelf. Alberta Oil extraction near Drayton Valley Alberta 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 industryrom 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 km). 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 km) are recoverable. Fort McMurray, one of Canada’s youngest and liveliest communities (Alberta’s largest unincorporated hamlet), has 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 and Utility Board (EUB). British Columbia Drilling rig in northern British Columbia Drilling 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). 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) . 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 .75 billion, up 10 percent from .72 billion in 2006. Revenues for the Big Four climbed to bilion from about billion in 2006. The numbers exclude Shell Canada and ConocoPhillips Canada, two private subsidiaries that produced almost 500,000 barrels per day in 2006. EnCana Corporation Canadian Natural Resources Limited Husky Energy Inc. ConocoPhillips Talisman Energy Inc. Devon Canada Corporation Petro-Canada 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 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 ^ “Estimated Production of Canadian Crude Oil and Equivalent”. National Energy Board of Canada. 2009. http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/stmtdprdctn-eng.html. Retrieved 2009-01-27. ^ “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. ^ Canadian Rig Locator ^ “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. ^ Alberta Energy and Utility Board (EUB) ^ British Columbia Oil and Gas Commission (OGC) ^ Saskatchewan Industry and Resources (SIR) ^ Vancouver Sun. Record Profits for Canada’s big oil companies Canadian Wellsite “Homepage of the Canadian Oilpatch” External links CBC Digital Archives – Striking Oil in Alberta Canadian Wellsite “Homepage of the Canadian Oilpatch” v d e Petroleum production in North America Sovereign states Antigua and Barbuda Bahamas Barbados Belize Canada Costa Rica Cuba Dominica Dominican Republic El Salvador Grenada Guatemala Haiti Honduras Jamaica Mexico Nicaragua Panama1 Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago1 United States Dependencies and other territories Anguilla Aruba1 Bermuda British Virgin Islands Cayman Islands Greenland Guadeloupe Martinique Montserrat Netherlands Antilles1 Puerto Rico Saint Barthlemy Saint Martin Saint Pierre and Miquelon Turks and Caicos Islands United States Virgin Islands 1 Territories also in or commonly considered to be part of South America. Categories: Petroleum production in Canada
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