More Oil Sands Capacity Announced

deMolay · Intermediate Crude Joined: Sep 04, 2005 Posts: 594

$30B project: 4,000 jobs
Canadian Natural's production of 800,000 barrels a day by 2017 would almost equal the current output of Argentina, Oman and Egypt

Gordon Jaremko and Scott Haggett
The Edmonton Journal; Calgary Herald

Thursday, November 03, 2005

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CREDIT: Herald Archive, Associated Press
A Reuters poll of 18 experts showed an average oil output growth forecast of 5.6 per cent to 484 million tonnes or 9.72 million barrels per day in 2005, down from nine per cent growth in 2004 and record 11 per cent growth in 2003.

EDMONTON - Canadian Natural Resources Ltd. has embarked on the largest construction project in Canadian history.

It said Wednesday it will boost its oilsands spending to close to $30 billion over the next 15 years, part of the Calgary-based firm's plan to become the biggest player in the world's biggest oil play.

Less than a year after going ahead with the $10.8-billion Horizon oilsands project, Canadian Natural detailed plans to double the size of the oilsands mine and on-site upgrading refinery.

It also has plans for a new upgrader for its thermal heavy oil projects south of Fort McMurray and near Cold Lake, and will spend around $4.8 billion to increase production by 240,000 barrels per day (bbl./day) from those projects.

It's the most ambitious slate of projects ever detailed by a Canadian public company. Combined with its existing Horizon plans, the early estimate of $30 billion for Canadian Natural's combined oilsands spending would be the largest construction project in Canadian history, dwarfing the $23 billion Hydro-Quebec spent on its James Bay hydroelectric project and the $20 billion US Alaska Highway natural gas pipeline.

"These are gargantuan numbers," said Martin Molyneaux, an analyst at FirstEnergy Capital Corp. in Calgary.

"It's hard to put it in perspective. Here's a company with a $30-billion market capitalization coming out and saying here's our plans. Then you add it up and it's pretty massive."

By 2017, Canadian Natural's total oilsands production target of nearly 800,000 barrels a day would almost equal the current output of Argentina, Oman and Egypt.

The company aims to become as big a player on the world market as "a small country," Canadian Natural president Steve Laut said in an interview.

The expansion projects will employ an average of 3,500 to 4,000 construction workers for 12 years. Another army of skilled tradespeople will be recruited to build the new upgrader plant in the Cold Lake region to convert discount-priced bitumen into premium, refinery-ready light crude. Horizon's cost figures are forecasts and could rise if oil prices stay above $50 US a barrel. High prices would accelerate industry activity and heat up competition for workers and materials, Laut said.

The plans announced Wednesday include:

w Speeding up the Horizon project: With construction just underway at Horizon and phase one (which will produce 110,000 bbl./day) on schedule to be complete by 2008, Canadian Natural will combine phases two and three. That will push output to 232,000 bbl./day by 2011, a year earlier than first planned.

w Adding two new phases to Horizon: After 2011, the company will start work on phases four and five. The new mining projects and associated upgrading refineries will add another 265,000 bbl./day from the site north of Fort McMurray and push total output of synthetic crude oil from Horizon to 497,000 bbl./day.

w Building a new upgrader for its thermal oilsands projects: The company is beginning engineering studies for an upgrader near its Primrose project near Cold Lake, where steam is pumped down wells to produce tar-like bitumen. Initial plans call for an upgrader built in two phases. The first, to be complete by 2012, would produce 125,000 barrels of synthetic crude a day. A second stage, finished three years later, would boost output to 175,000 bpd.

fossilnut2

"$30B project: 4,000 jobs ..."

!!! We can't get warm bodies now to fill thousands of jobs.

A young kid out of high school can rearn 60 thousand, get a daily living allowance, etc. to work in the fields, seismic, etc. If they want, many can work 7 days a week and earn over a hundred thousand...save most of his living allowance and...get a decent nest egg. The work is already there.

Our friends' son went out to work at Zama Lake and saved up enough in 18 months to buy a modest house in Calgary. He's only 22 and didn't have 2 cents when he went out. Then again, he worked like hell and talked our ear off with stories of life in the wilderness when he was back in Calgary.

Byron100

pstarr

What a bunch of hooey and nonsence. The entire project is built on cheap liquid petroleum. When that runs out so does this insanity, leaving a bunch of rusting monsters-trucks in the melting tundra. Industrial man's last gasp is emphasymatic. Mad

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fossilnut2

MonteQuest

deMolay · Intermediate Crude Joined: Sep 04, 2005 Posts: 594

It would be fantastic if Americans came here to work. Especially skilled trades. If you have experience they will pay big. They need Millwrights, welders, pipefitters, heavy duty mechanics, iron workers, electricians, instrument tech's. etc. An experienced tradesman will earn 150,000 plus a year. To those who don't like the oil sands too bad. The technology is emerging here in Alberta and the new plants will not consume Natural Gas at all, they will produce synthetic gas from the crude which will save Natural Gas and lower production costs. As to the Oil sands in volume of proven oil reserve it is 2nd only to Saudi Arabia in volume and size. The CNRL project is just one development. It could be the ticket to make a soft landing and transition for Canada and the USA. Hopefully.

some_guy282 · Intermediate Crude Joined: Jul 18, 2004 Posts: 689

fossilnut2

That's far from an isolated drop in the bucket. Buckets are filled with drops. The world is 6 billion people so almost anything is a drop in the bucket...including the town or country you live in (unless it's China or India).

Antimatter

800,000bpd is like a supergiant oil field, and it won't decline for many many years.
_________________
"Production of useful work is limited by the laws of thermodynamics, but the production of useless work seems to be unlimited."

deMolay · Intermediate Crude Joined: Sep 04, 2005 Posts: 594

I kinda thought 800,000 bpd was very big news considering it is only the production of one company. This play is 30b this will bring the total of all investments by all companies to over 100b. When they are all up at full production Alberta will be second only to Saudi I believe in supplying the USA with oil, that doesn't include Natural gas or electricity. If you include those forms of energy we exceed even the Saudi's in supplying energy to the USA.

nocar · Intermediate Crude Joined: Nov 05, 2004 Posts: 666

fcf2 · Coal Joined: Jan 23, 2006 Posts: 1

Hey guys,

I was wondering if I could get some information on possible summer work in Canada. Im currently a student living in Washington State, have a wife, and need to pay the bills. I dont have any major skills, but have been doing labor for a construction company.

Any links or straight forward information would be great.

thanks

spteuoppilde · Coal Joined: Jan 23, 2006 Posts: 1