steam assisted gravity drainage

Tue, 2014-10-14 13:35Steve Horn
Steve Horn's picture

Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Fri, 2013-01-25 13:09Carol Linnitt
Carol Linnitt's picture

Two Oil Spills in Alberta Due to Inadequate Monitoring

Companies responsible for two separate oil spills in Alberta failed to provide adequate oversight for their operations, according to federal government documents released by Environment Canada through Access to Information legislation.

The documents detail how Devon Canada and Gibson Energy violated environmental laws, including the federal Fisheries Act, when their operations cause two oil spills into fish-bearing waterways in 2010.

Gibson Energy, a midstream pipeline operator, spilled a few hundred litres of oil into an Edmonton creek after failing to properly abandon an unused pipeline. According to a warning letter issued to the company from Environment Canada, “Gibson Energy ULC made a business decision to keep the Kinder Morgan lateral full of crude oil and to not purge it with nitrogen.”

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