MEDIA / Suncor Energy Boosts Oil Holdings
December 19, 1997
Calgary Sun
Synthetic oil giant Suncor Energy Inc. has substantially expanded its heavy oil holdings in the Firebag area near Fort McMurray, spending of property.
The move is Calgary-based Suncor's latest step to exploit the oilsands through other methods than mining, which is the focus of the company's massive oilsands plant in Fort McMurray, the world's second largest.
The extraction of oil from bitumen while still in the ground is known as in-situ, or in-place, extraction.
Suncor will use a method known as steam assisted gravity drainage, or SAGD, where steam is used to warm the oil so that it will flow freely enough to be lifted.
"We're optimistic that the SAGD technology will be commercially competitive in high-quality oilsands deposits," said Suncor's executive vice-president Barry Stewart.
"We are confident we will be able to develop a long-term commercial strategy for in-situ heavy oil that builds on the fully integrated approach Suncor applies to its businesses."
Suncor has been testing the SAGD process at a pilot project at Burnt Lake and at the Athabasca Underground Test Facilities.
The company drilled 20 test wells on its original Firebag lease, which revealed high-quality deposits crucial for ensuring extraction is economical.
The company plans 50 more wells in the area, about 40 kms from Suncor's plant, in the next few months.
The expansion of in situ extraction applications is an area of growing interest among oilpatch players, including Gulf Canada Resources Ltd., and marks another method for Suncor to take advantage of the oilsands.
"There are se-veral possible opportunities for integration," said Stewart.
They include:
* Using Firebag production as feed stock for Suncor's plant;
* Tying production into the proposed Wildrose Pipeline;
* Including the distribution, marketing and refining of heavy oil in Suncor's extensive downstream operations.
The heavy oil business has been complicated recently by a widening price differential between light and heavy crude, which is more costly to refine.
Suncor said it will develop a strategy to mitigate that price risk. |
