As oilsands punished, tanker loads of cheap Saudi oil sail into Canadian ports daily
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Petroleum production in Canada is a major industry which is oil and energy trading inc montreal to the economy of North America. Canada has the third largest oil reserves in the world and is the world's fifth largest oil producer and fourth largest oil exporter.
The petroleum industry in Canada is also referred to as the Canadian "Oil Patch"; the term refers especially to upstream operations exploration and production of oil and gasand to a lesser degree to downstream operations refining, distribution, and selling of oil and gas products.
Inalmost 25, new oil wells were spudded drilled in Canada. Daily, over new wells are spudded in the province of Alberta alone. In it imported 86, cubic metres per day 0.
The Canadian petroleum industry developed in parallel with that of the United States. The first oil well in Oil and energy trading inc montreal was dug oil and energy trading inc montreal hand rather than drilled in by James Miller Williams near his asphalt plant at Oil Springs, Ontario.
Petroleum production in Ontario expanded rapidly, and practically every significant producer became his own refiner. By20 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 Canada was a net importer of oil from the United States.
Canada's unique geographygeologyresources 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 the United States. Unlike the United States, which has a number of different major oil producing regions, the vast majority of Canada's petroleum resources are concentrated in oil and energy trading inc montreal enormous Western Canadian Sedimentary Basin WCSBone of the largest petroleum-containing formations in the world.
Consisting of a massive wedge of sedimentary rock up to 6 kilometres oil and energy trading inc montreal. It is also far from American industrial centres. Because of its geographic isolation, the area was settled relatively late in the history of Canada, and its true resource potential was not oil and energy trading inc montreal until after World War II.
As a result, Canada built its major manufacturing centres near its historic hydroelectric power sources in Ontario and Quebec, rather than its petroleum resources in Alberta and Saskatchewan. Not knowing about its own potential, Canada began to import the vast majority of its petroleum from other countries as it developed into a modern industrial economy.
The province of Alberta lies at the centre of the WCSB and the formation underlies most of the province. The potential of Alberta as an oil-producing province long went unrecognized because it was geologically quite different from American oil producing regions.
The first oil well in western Canada was drilled in southern Alberta inbut did not produce for long and served to mislead geologists about the true nature of Alberta's subsurface geology. The Turner Valley oil field was discovered inand for a time was the biggest oil field in the British Empirebut again it misled geologists about the nature of Alberta's geology. In Turner Valley, oil and energy trading inc montreal mistakes oil companies made led to billions of dollars in damage to the oil field by gas flaring which not only burned billions of dollars worth of gas with no immediate market, but destroyed the field's gas drive that enabled the oil to be produced.
As a result of the highly oil and energy trading inc montreal wastage, the Alberta government launched vigorous political and legal attacks on the Canadian Government and the oil companies that continued until when the province set up the Alberta Petroleum and Natural Gas Conservation Board and imposed strict conservation legislation. There were hundreds more Devonian reef formations like it underneath Alberta, many of them full of oil.
There was no surface indication of their presence, so they had to be found using reflection seismology. The main problem for oil companies became how to sell all the oil they had found rather than buying oil for their refineries.
Exports to the U. Most of the oil companies exploring for oil in Alberta were of U. This foreign ownership spurred the National Energy Program under the Trudeau government. Although around a dozen companies operate oil refineries in Canada, only three companies - Imperial OilShell Canada and Suncor Energy - operate more than one refinery and market products nationally.
Other refiners generally operate a single refinery and market products in a particular region. The numbers exclude Shell Canada and ConocoPhillips Canada, two private subsidiaries that produced almostbarrels per day in AlbertaSaskatchewanand Newfoundland and Labrador.
In Alberta produced The province of Newfoundland and Labrador produces its oil from offshore oil and energy trading inc montreal on the Grand Banks of Newfoundland in the western Atlantic Ocean.
Alberta is Canada's largest oil producing province, providing This included light crude oilheavy crude oilcrude bitumensynthetic crude oiland natural-gas condensate. In Alberta produced an average ofcubic metres per day 3. These deposits give Canada the world's third largest oil reserveswhich are rivaled only by similar but even larger oil reserves in Venezuelaand conventional oil reserves in Saudi Arabia.
In addition to being the world's largest producer of oil sands bitumen in the world, Alberta is the largest producer of conventional crude oilsynthetic crudenatural gas and natural gas liquids products in Canada. The Athabasca oil sands is the only large oil field in the world suitable for surface miningwhile the Cold Lake oil sands and the Peace River oil sands must be produced by drilling.
This technology grew and developed in Alberta. Many companies employ both conventional strip mining and non-conventional oil and energy trading inc montreal to extract the bitumen from the Athabasca deposit.
There are oil and energy trading inc montreal oil sands upgraders in Alberta which convert crude bitumen to synthetic crude oil, some of which also produce refined products such as diesel fuel. These have a combined capacity of 1. Since it is Canada's largest oil producing province, Alberta is the hub of Canadian crude oil pipeline systems.
Pipelines that cross provincial or federal borders are regulated by the National Energy Board. Most of these are located on what is known as Refinery Row in Strathcona County near Edmonton, Albertawhich supplies products to most of Western Canada. In addition to refined products such as gasoline and diesel fuel, the refineries and upgraders also produce off-gases, which are used as feedstock by nearby petrochemical plants. Two of the largest producers of petrochemicals in North America are located in central and north central Alberta.
In both Red Deer and Edmontonworld 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 various services to this industry—from drilling to well maintenance, pipeline maintenance to seismic exploration. While Edmonton population 1.
Calgary also has regional offices of all six major Canadian banks, some 4, petroleum, energy and related service companies, and 1, financial service companies, helping make it the second largest head office city in Canada after Toronto. Saskatchewan is Canada's second largest oil-producing province after Alberta, producing about This included light crude oilheavy crude oiland natural-gas condensate.
Most of its production is heavy oil but, unlike Alberta, none of Saskatchewan's heavy oil deposits are officially classified as bituminous sands. Lying toward the shallower eastern end of the sedimentary basin, Saskatchewan tends to produce more oil and less natural gas than other parts. It has four major oil producing regions: There are two heavy oil upgraders in Saskatchewan.
The majority of the province's refining capacity is in a single complex in the provincial capital of Regina: Newfoundland and Labrador is Canada's third largest oil producing province, producing oil and energy trading inc montreal 4. This consisted almost exclusively of light crude oil produced by offshore oil facilities on the Grand Banks of Newfoundland. The refinery was built before the discovery of oil offshore Newfoundland to process cheap imported oil and sell the products mainly in the United States.
Unfortunately the startup of the refinery in coincided with the oil crisis which quadrupled the price of the refinery's crude oil supply. This and technical problems caused the refinery to go bankrupt in It was restarted under new owners in and has gone through a series of owners until the present date when it is operated by North Atlantic Refining Limited.
Until then all of Newfoundland's production went to refineries in the United States and elsewhere in Canada, while the refinery imported all its oil from other countries. British Columbia's oil fields lie at the gas-prone northwest end of the Western Canadian Sedimentary Basinand its oil industry is secondary to the larger natural gas industry.
BC has only two remaining oil refineries. There once were four oil refineries in the Vancouver area, but Imperial OilShell Canadaand Petro Canada converted their refineries to product terminals in the s and now oil and energy trading inc montreal the BC market from their large refineries oil and energy trading inc montreal Edmonton, Albertawhich are closer to Canada's oil sands and largest oil fields.
The refinery, which started production inhas employees. Chevron's offer to sell follows Imperial Oil's sale of Esso gas stations in B. It is unclear what will happen if Chevron fails to sell its BC assets.
Manitoba's oil production is in southwest Manitoba along the northeast flank oil and energy trading inc montreal the Williston Basina large geological structural basin which also underlies parts of southern Saskatchewan, North Dakota, South Dakota and Montana. Unlike in Saskatchewan, very little of Manitoba's oil is heavy oil and energy trading inc montreal oil. There used to be an oil refinery at Norman Wells, but it was closed in and all of the oil is now pipelined out to refineries in Alberta.
Extensive drilling was done in the Canadian Arctic during the s and s by such companies as Panarctic Oils Ltd. After wells were drilled at a cost of billions of dollars, a modest 1. None of the finds were big enough to pay for the multibillion-dollar production and transportation schemes required to bring the oil out, so all the wells which had been drilled were plugged and abandoned. Onshore production in other provinces east of Ontario was even more insignificant.
Ontario was the centre of the Canadian oil industry in the 19th century. It had the oldest commercial oil well in North America dug by hand in at Oil Springs, Ontarioa year before the Drake Well was drilled in Pennsylvaniaand having the oldest producing oil field in North America producing crude oil continuously since However, it reached oil and energy trading inc montreal production peak and started to decline more than years ago.
Byonly three Canadian crude oil pipelines existed. One was built to handle only Alberta production. A second moved imported crude from coastal Maine to Montrealwhile the third brought American oil into Ontario. It was followed by many even larger discoveries in Oil and energy trading inc montreal, so pipelines were built to take the newly discovered oil to refineries in the American Midwest and from there to refineries in Ontario.
Despite having very little oil production, Eastern Canada has a large number of oil refineries. The ones in Ontario were built close to the historic oil fields of southern Ontario; the ones in provinces oil and energy trading inc montreal the east were built to process oil imported from other countries. After the oil crisis drastically increased the price of imported oil, the economics of refineries became unfavorable, and many of them closed. In particular, Montreal, which had six oil refineries innow has only one.
See the Newfoundland and Labrador section above for details. Canadian conventional oil production peaked inbut oil sands production is forecast to increase to at least Broadly speaking Canadian conventional oil production via standard deep drilling peaked in the mids, but East Coast offshore basins being exploited in Atlantic Canada did not peak until and are still producing at relatively high rates.
Production from the Alberta oil sands is still in its early stages and the province's established bitumen resources will last for generations into the future.