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CANADA
North America
Canada is a major producer and net exporter of oil.
Approximately 90% comes from the Western Canadian Sedimentary Basin (WCSB)
where major heavy crude deposits are also located. Commercial oil was
first significantly exploited here in 1947 when the Leduc 1 well was
drilled near Edmonton. From Alberta and to a lesser extent neighbouring
provinces, light and
heavy crudes, including blended bitumen and syncrude, are sold to
domestic and US refiners.
 Canada’s conventional gas reserves and resources are also
large.
Approximately 65% is exported to the United States whilst within the
country gas is used in all sectors where it is available. Along with its
conventional gas, Canada also has extensive resources of coal bed
methane in the WCSB.
Oil Sands: Canada and the
Alberta provincial government are seeking to promote oil sands as a
resource base capable of playing a big role in the search for greater
North American energy security.
Canada has huge reserves of extra-heavy
oil and bitumen contained in the Athabasca (and Cold Lake) oil sands in NE Alberta - the
largest petroleum resource in the world. These are estimated by the Alberta Energy and Utilities
Board to hold around 300 Bn Bbls of proven oil, extractable using
present day technology at present day prices, achievable from a total
in-place resource of around 2000 Bn Bbls. Perhaps a further 300 Bn Bbls
of reserves may be recoverable using new and currently sub-economic
production methods.
 The biggest challenge to the Canadian gas industry,
outside of meeting US demand, is in the oil sands industry where large
volumes are needed as a fuel to separate and convert the heavy crude
into syncrude. Environmental problems associated
with oil sands are also very large. Although reserves are huge the rate at
which the sands can be developed will thus be limited by other factors.
Offshore: Two provinces produce
offshore oil and gas in Canada – Newfoundland and Nova Scotia although
there are several other offshore regions that have the potential to
produce both oil and gas.
Newfoundland and Labrador:
On the eastern coast of Canada the Jeanne d’Arc basin on
the northeast of the Grand Banks of Newfoundland, stretching from the
East Newfoundland (Orphan) basin southwards to the southern tip of
Newfoundland, contains a giant oil field, two other producing fields and a string of further
discoveries.
The Hibernia Field was discovered in 1983 and finally
came onstream in 1997 from a gravity based structure. For many years commercial development was
impossible due to the extreme conditions but opportunities realised from
new technology, additional discoveries and new favourable exploration
terms, ultimately gave companies the incentive to develop the special
technologies needed to exploit the field. Two other projects are also
now active - Terra Nova and White Rose which both use FPSOs - and there
are several gas discoveries along with potential for subsea tiebacks at
Hibernia (Hibernia South), planned White Rose extensions, and a future
heavy oil project (Hebron). Elsewhere off Newfoundland and Labrador
there are many sub-basins all of which may have potential, especially
for gas.
Nova Scotia:
In 1967 Mobil drilled Canada’s first offshore well on the Nova Scotian
Shelf, and went on to discover gas in 1971 near Sable Island. In 1979
the Venture gas field was discovered, containing more gas than all other
fields found to date, however, the gas was at first non-commercial. In
1973 the Cohasset oil field was drilled, the first of two fields (the
other being Panuke) that eventually made up Canada’s first offshore oil
project. In 1992 production began from Cohasset but it ceased in 1999.
In 1995 gas fields, including Venture were pooled into
the Sable Offshore Energy Project (SOEP). The project ultimately
involves the development of six major fields lying 10 to 40 km north of
the edge of the Scotian Shelf. Other shallow water prospects, northwest
and northeast of Sable Island have also been drilled. It is estimated
that over 120 Bcm of gas has already been discovered in the Sable area
whilst perhaps as much again remains undiscovered. Untapped deep water
potential on the Scotian Shelf and Slope may also be present;
Arctic Canada: The US
Prudhoe Bay oil field, discovered in 1968, stimulated exploration in
Arctic Canada. It is a very large area although much of the offshore is
covered by permanent pack ice and is not considered viable for
exploration. However, several discoveries have been made in both the
western and eastern regions.
The Arctic region of western Canada where the Mackenzie
delta enters the Beaufort Sea near the US border comprises a thick wedge
of clastic sediments of Cretaceous and Tertiary age laid down in the
northwards-draining delta system of the Mackenzie River on a rapidly
subsiding shelf. Cretaceous source rocks are deeply buried and have
primarily generated gas. Plans to move substantial volumes of gas south
are in progress.
The Sverdrup Basin underlies a substantial part of the
eastern area of the Canadian Arctic. A thick sedimentary section ranging
from a Carboniferous salt basin to a Tertiary sandstone sequence
contains a prolific Triassic source rock. It is an area of islands,
separated by ice-scoured channels and, between 1969 and 1984, 17 oil and
gas fields were discovered on the islands in six areas. Although the
remote location has so far precluded development, they do prove the
potential for substantial resources, especially gas, in eastern Canadian
Arctic basins.
Other offshore Canada:
Canada’s western coastline lies adjacent to the Coastal Mountains of
British Columbia. There were 28 wells drilled into the Hecate, Queen
Charlotte and Tofino offshore basins between 1913 and 1984 confirming
the presence of reservoir rocks, source rock material and potential
seals. Seismic data confirm the presence of potential traps.
However, activity here came to a halt in 1972 when the Canadian federal
government declared an indefinite moratorium on offshore oil and gas to
restrict Alaska oil tanker traffic and there has been no drilling ever
since. The moratorium was extended after the Exxon Valdez oil spill in
1989.
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