Gas or Bitumen?
Lawyers have to love it, let the bickering begin (continue?).
The Alta. Energy and Utilities Board (EUB) is the newsmaker today....... "Consultation Continues on Proposed Conservation Policy Affecting Gas Production in Athabasca Wabiska-McMurray Oil Sands Area"
eub.gov.ab.ca
Main crux of the issue is:
..."As a result of that consultation and work, evidence has been brought forward that identifies a specific area of concern within the Wabiskaw-McMurray. The area of concern contains natural gas that lies in contact with significant bitumen reserves. When that natural gas is extracted, there is a drop in pressure within the gas zones. Evidence indicates that this leads to a risk of bitumen loss, as bitumen may not then be recovered through existing thermal recovery techniques, such as steam assisted gravity drainage (SAGD).
The amount of recoverable crude bitumen reserves at risk in the area of concern is about 100 billion barrels (16 billion cubic metres); an amount that is 60 times larger than Alberta's remaining established conventional oil reserves, or 7 times greater than all of the conventional oil ever produced in Alberta.
As evidence suggests that some Wabiskaw-McMurray gas pools are at an advanced state of depletion, and to provide more certainty for producers, the EUB will complete its consultation on the proposed conservation policy in early July 2003, and the completed policy will be released shortly thereafter....."
Map of the area where gas is being shut-in is at the end of the document.
eub.gov.ab.ca
Some of the producers' submissions:
eub.gov.ab.ca
Will be interesting to see how the politics play out as the like of Paramount, Nexen, Talisman, BP Canada, Canadian Natural Resources, Petro-canada, Encana, Husky, Devon Canada, Imperial Oil and even smaller Triquest pay quite a bit of royalties to Alberta coffers. The ruling would appear to have (worst case scenario?) potential impact of Paramount's Trust shutting in up to half of it's gas production........
Something to watch develop over the days ahead? |
