> This is for extraction of only a portion of the oil. Most is unextractable with
> current technology. 77% is the estimate of how much oil in this region cannot
> be extracted. Heavy convention extraction methods can reach about 1% and
> newer extraction technologies are estimated to be capable of recovering
> approximately 14%. This is from data published in 2004. The technologies you
> speak of are listed below in an extensive quote from Singh's work.
John, the info you attached to the above sounds very convincing. An estimated 77% can't be extracted? How, then, to explain the enthusiasm brimming over in various sectors vis-a-vis the Athabasca oil sands region? Here are a few snips from things I've seen recently, all in relation (to varying degrees) to just China's interest in same. I don't actually follow this stuff real closely, but I have seen quite a few references to Big Things happening in Alberta of late. Note the paragraph in the second article about $40+/barrel oil making the sands more attractive/viable -- a far cry from the hypothetical $170+/barrel in your earlier message. Interesting.
http://business.timesonline.co.uk/article/0,,13132-1511234,00.html
March 05, 2005
China woos chief sitting on black goldmine By Carl Mortished
HIS family once traded fur pelts with the Hudson Bay Company but Chief Jim Boucher of Fort McKay First Nation is on his way to China to talk about a new product and it could be worth billions.
He has a standing invitation to Beijing where a Chinese oil company is anxious to talk to him about a parcel of land in the middle of the world’s largest petroleum resource: the Athabasca oil sands. Fort McKay First Nation, a community of aboriginal Canadians of mainly Chipeywan descent has title over land which contains some 350 million barrels of bitumen, a significant resource for the less than 500 community members.
“Once the Chinese found we had some oil, they invited me over to China. I will probably go in April,” he says.
Fort McKay has already agreed a memorandum of understanding with Shell, its neighbour on the far shore of the Athabasca river. Chief Boucher’s deadpan expression gives nothing of his intentions but Neil Camarta, head of Shell’s Athabasca Oil Sands Project, is looking slightly nervous.
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http://www.chinadaily.com.cn/english/doc/2004-12/31/content_405014.htm
Sinopec, CNPC to invest in Canadian oil firms (Shenzhen Daily) Updated: 2004-12-31 10:38
Chinese oil companies like Sinopec and CNPC are locating new sources of oil supply in Canada.
The move is expected to get a kick-start next month when Canadian Prime Minster Paul Martin visits Beijing for talks with top leaders. The two governments may sign framework accords that could lead to specific contracts between China’s two giant oil group, Sinopec and China National Petroleum Corp. (CNPC), parent of PetroChina, and several Canadian firms with interests in the Alberta oil sands, Sinopec and industry sources say.
Following negotiations over the past few weeks, China Petrochemical Corp, a Sinopec group unit, may be among the first to sign an agreement, Sinopec sources said.
The Alberta oil sands, with proven reserves of 175 billion barrels, have long attracted the world’s major oil companies, but high production costs made them uncompetitive with more conventional, and easily extractable, supplies. Now with oil prices more than US$40 a barrel, and likely to remain high, the economics had become much more attractive, said a source at CNPC-Alberta Petroleum Center, a research outfit set up jointly by CNPC and the Alberta government in 1989.
According to company sources, Sinopec may buy one or more stakes in Canadian companies with licences to produce the Athabasca oil sands. Though the source would not name names, the New York Times last week suggested that among the possible partners is UTS Energy.
Another possible target could be the Canadian Oil Sands Trust, which is the majority shareholder in the largest oil sands project and holds a 35.49 percent interest in the Syncrude joint venture that brings together international companies such as Conoco Phillips Oilsands, Exxon and Petro-Canada.
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http://www.china.org.cn/english/BAT/113712.htm
Sinopec Chases Husky
China Petrochemical Corp. (Sinopec Group), China's biggest oil refiner, was in talks with Hutchison Whampoa and its controlling shareholder Li Ka-shing to buy all or part of their controlling stake in Canada's Husky Energy, a Sinopec source said.
An acquisition would not only give Sinopec access to Husky's millions of barrels of oil and natural gas reserves, but could provide the entry that Sinopec has been seeking into the province of Alberta's massive Athabasca oil sands.
(snip)
A representative of Sinopec Group, the parent of Hong Kong-listed China Petroleum & Petrochemical, was currently in Canada meeting Husky officials, the Sinopec source said.
Industry sources said the Sinopec Group had been eyeing an investment in Alberta's oil sands for some time as it sought to lock in access to oil supplies for the rapidly growing Chinese market.
The country next year is expected to import 40 percent of its crude oil, a percentage that is almost certain to swell in coming years.
In June, Sinopec was considering a proposal to ship synthetic crude derived from the oil sands via a pipeline across the Canadian Rockies to British Columbia, where it would be loaded on to tankers bound for China, according to PetroEnergy Information Network.
Sinopec is not alone in its interest in Canadian oil reserves. Both PetroChina, the country's biggest integrated oil company, and China National Offshore Oil Corp (CNOOC) have also held talks with Canadian oil producers recently.
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http://www.beijingportal.com.cn/7838/2005/01/21/1820@2482823.htm
China, Canada sign energy agreements Beijing Portal 2005-01-21 14:34:27
Premier Wen Jiabao (second right) and visiting Canadian Prime Minister Paul Martin (third right) talk during a signing ceremony at the Great Hall of the People yesterday. The two sides signed a joint statement to improve co-operation in international affairs, and a dozen other agreements and memoranda of understanding.
China and Canada agreed yesterday to take on the energy sector -- oil and gas, nuclear energy, energy efficiency and cleaner energy -- as "priority areas" of long-term mutual co-operation.
"China and Canada have decided to work together to promote co-operation in the oil and gas sector, including Canada's oil sands, as well as in the uranium resources sector," a statement issued yesterday during the visit of Canadian Prime Minister Paul Martin to China said.
The two nations will encourage respective enterprises to expand commercial partnerships, the Statement on Energy Co-operation in the 21st Century indicated.
The National Development and Reform Commission and Natural Resources Canada will maintain regular dialogue and exchanges of views. Contacts will be conducted through the Canada-China Joint Working Group on Energy Co-operation, under a 2001 memorandum of understanding (MOU) concerning co-operation in energy, the statement said.
The nations are promising to uplift their relationship to a new level by "focusing their efforts strategically in areas of greatest mutual advantage," a joint statement issued after a meeting between Premier Wen Jiabao and his Canadian counterpart Paul Martin said.
The sides have agreed upon a outline for the activities of a strategic working group that will try to identify and develop paths for broadening ties.
"The work of the group will initially focus on enhancing our partnership in the fields of multilateral co-operation, natural resources and energy, and trade and investment," the document said. It will also tackle global security and multilateral co-operation, prosperity and sustainable growth, as well as promote people-to-people ties.
"Significant development has been seen in our relationship in a wide-range of areas during the past few years," said Wen, when speaking to an a trade delegation of more than 300 entrepreneurs.
"There is a need for the two countries to deepen understanding between each other," said Wen, adding that Canada has great advantages in energy and minerals, while China has advantages in the production of electrical appliances, daily necessities and electrical and mechanical products.
The Canadian Prime Minister said Canada wishes to strengthen co-operation in natural resources, investment and other fields.
"The Canadian business committee are here not for short-term prospects... but for a long-term co-operation," said Martin.
A total of 13 statements, agreements and MOUs were signed between China and Canada, on co-operation in energy and minerals, culture, telecommunications and other sectors.
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/ dave /