Oil Sands – SAGD Facilities List

Alberta’s in situ oil sands projects utilize advanced extraction methods, such as steam-assisted gravity drainage (SAGD) and cyclic steam stimulation (CSS), to recover bitumen from deep underground reservoirs. These techniques are less invasive than traditional open-pit mining and have become increasingly important in the province’s oil sands industry. Here’s an overview of the companies and SAGD locations:

Canadian Natural Resources (CNRL)

  • Primrose & Wolf Lake – At Primrose, bitumen is extracted using cyclic steam stimulation (CSS) and transitions to steam flood follow-up in mature wells to enhance efficiency.
  • Kirby South – The Kirby project, with a capacity of 80,000 bbl/d, uses SAGD technology for bitumen extraction, and a solvent SAGD pilot at Kirby South achieved 45% SOR and GHG reductions by 2021.
  • Kirby North – Kirby North project, producing oil since 2019, is set to begin commercial solvent SAGD operations in early 2024.
  • Jackfish – Canadian Natural acquired the Jackfish thermal in situ oil assets in 2019, including 3 central processing facilities with a combined productive capacity of 120,000 bbl/d, and integrated them with their existing Kirby operations.

Cenovus Energy

  • Christina Lake – The Christina Lake project, located southeast of Fort McMurray, Alberta, began production in 2002 and is now the largest and most efficient SAGD project in the industry. It has a low steam to oil ratio (SOR), leading to reduced water and natural gas usage and fewer greenhouse gas emissions.
  • Foster Creek – The Foster Creek project, located northeast of Edmonton on the Cold Lake Air Weapons Range, began commercial operation in 2001 as the first to use SAGD technology. It is one of the largest and most efficient SAGD projects in the industry, featuring a low SOR and high-producing wells.
  • Sunrise – The Sunrise project is 100% owned and operated by Cenovus. Sunrise is about 60 kilometres northeast of Fort McMurray, Alberta and its reservoir sits roughly 200 metres below the surface. The facility began operating in 2015.
  • Tucker

Suncor Energy

  • Firebag – Firebag, located northeast of Fort McMurray, is the largest in situ operation, producing up to 215,000 barrels of oil a day with 600 wells and a fly-in workforce. It has five cogeneration units generating 425 MW of low-GHG power, with excess supplied to Alberta’s grid to reduce carbon intensity.
  • MacKay River – MacKay River, located northwest of Fort McMurray, was the first in situ facility and initially designed to produce 30,000 bpd, now expanded to 38,000 bpd with new technologies. The site includes bitumen/water separation, water treatment, and steam generation facilities, with around 300 people on site daily, and transports bitumen to the Base Plant for blending or processing.
  • Lewis – The Lewis project, wholly owned by Suncor, is a proposed multi-stage in situ oil sands development located northeast of Fort McMurray, aiming to produce up to 160,000 barrels per day of bitumen. It will use steam-assisted gravity drainage (SAGD) and cogeneration of electricity, and received regulatory approval in March 2021.

MEG Energy

  • Christina Lake – MEG’s Christina Lake Project, located 150 kilometres south of Fort McMurray, is a multi-phased SAGD operation covering approximately 200 square kilometres. It has regulatory approvals to produce approximately 210,000 bpd and began production in 2008 with Phase 1 at 3,000 bpd.

Imperial Oil

  • Cold Lake – Cold Lake project, located in northeastern Alberta, is one of Canada’s largest in situ oil sands operations, using cyclic steam stimulation (CSS) to produce over 150,000 barrels per day.

Athabasca Oil Corporation

  • Hangingstone – The project produces over 9,000 bbl/d with 5 producing pads and holds ~172 MMbbl of Proved plus Probable reserves, with regulatory approvals for up to 12,000 bbl/d.
  • Leismer – The cornerstone asset produces over 20,000 bbl/d with regulatory approvals to expand to 40,000 bbl/d and holds ~705 MMbbl Proved plus Probable reserves with a ~90-year reserve life.

Greenfire Resources Operating Corporation

  • Hangingstone – Greenfire’s Hangingstone Expansion and Demo assets, located south of Fort McMurray, optimize two SAGD facilities within the same Tier-1 reservoir. The Expansion Asset has a debottlenecked gross production capacity of 35,000 bbl/d, and the Demo Asset has a capacity of 7,500 bbl/d, with both assets utilizing expandable pipeline infrastructure.

Connacher Oil and Gas Limited

  • Great Divide – The Connacher Great Divide project in Alberta uses Steam-Assisted Gravity Drainage (SAGD) technology to produce around 20,000 barrels per day of bitumen, with a focus on environmental sustainability through water recycling and emission reduction.

Harvest Operations Corp.

  • BlackGold Oil Sands – The BlackGold Oil Sands Project, acquired from KNOC in 2010, is located southeast of Conklin, Alberta, and has Proved and Probable Undeveloped bitumen reserves totaling 259.2 MMbbl. Phase 1, producing 10,000 bpd, ramped up to full capacity in 2019, while Phase 2 aims to increase production to 30,000 bpd using SAGD technology, with Harvest Operations Corp. holding a 100% working interest.

Strathcona Resources

  • Lindbergh – The Lindbergh project by Strathcona Resources uses Steam-Assisted Gravity Drainage (SAGD) technology to produce over 18,000 barrels per day of bitumen in Alberta, with plans for expansion to increase capacity.
  • Orion – The Orion project by Strathcona Resources utilizes Steam-Assisted Gravity Drainage (SAGD) technology to produce approximately 20,000 barrels per day of bitumen in Alberta, with a focus on minimizing environmental impact through water recycling and emission reduction.
  • Tucker – The Tucker project, located in the Cold Lake region of Alberta, uses Steam-Assisted Gravity Drainage (SAGD) technology to produce around 30,000 barrels per day of bitumen.

ConocoPhillips Canada

  • Surmont – The Surmont project, a joint venture between ConocoPhillips (operator) and Total E&P Canada, is an in situ oil sands operation southeast of Fort McMurray, employing SAGD technology to produce up to 150,000 bpd.

Western Canada Oil Sands SAGD Map

Advantages of In Situ Projects

  • Reduced Land Disturbance: In situ methods disturb less surface land compared to open-pit mining.
  • Lower Water Usage: Technologies like SAGD are designed to use water more efficiently.
  • Reduced GHG Emissions: Some projects incorporate cogeneration and other technologies to minimize greenhouse gas emissions.
  • Economic Benefits: These projects contribute significantly to Alberta’s economy through job creation and local business opportunities.

Challenges

  • Environmental Concerns: Despite lower surface disturbance, in situ projects still pose risks to groundwater and local ecosystems.
  • Energy Intensity: In situ extraction is energy-intensive, requiring significant amounts of steam and electricity.
  • Regulatory and Social License: Maintaining community and regulatory support is crucial, especially concerning Indigenous rights and environmental stewardship.

Future Trends

  • Technological Innovations: Ongoing advancements aim to improve efficiency and reduce environmental impact.
  • Carbon Management: Increasing focus on carbon capture and storage (CCS) to achieve net-zero emissions.
  • Enhanced Collaboration: Greater collaboration with Indigenous communities and other stakeholders to ensure responsible development.

Overall, Alberta’s in situ oil sands projects play a critical role in the province’s energy landscape, balancing economic benefits with environmental and social responsibilities.

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