SAGD extraction set to play a larger role in oil sands
The prevailing image of the oil sands is of monstrous trucks and backhoes, scraping the resource off the ground in northern Alberta. But change is afoot in the bitumen business
By some estimates 80 per cent of Alberta’s remaining 169 billion barrels of oil sands reserves will not be mined. In fact, that percentage will be extracted using in situ methods. The most well-known in situ extraction process is steam assisted gravity drainage (SAGD), where super-heated steam is injected into the reservoir to loosen up bitumen that is too deep to mine. That bitumen then flows through wells to the surface. Over the next two years, there are a number SAGD projects being expanded or coming online that will see production from those projects alone rise from 89,000 barrels per day (bpd) to 283,000 bpd. What follows are six of the biggest SAGD growth projects in development.
Source: CIBC World Markets