On November 14, the Alberta Energy Regulator (AER) undertook the rare action of ordering the shutdown of an oil sands producer. In this case, the shutdown order was placed against the producing assets of Sunshine Oilsands Ltd., a small operator of bitumen producing stream assisted gravity drainage (SAGD) wells at its West Ells site in the Athabasca region of Alberta’s oil sands. The AER noted that Sunshine has “repeatedly failed to comply with regulatory requirements and address compliance issues in a timely manner.” The AER also ordered the company to post a security deposit of C$6.1 million ($4.3 million) to cover estimated inactive liability and provide reasonable care and measures for its producing sites. The shutdown order applies to wells, affiliated processing facilities and any related pipelines.
Featured Articles
Get Together - Alberta Oil Sands Consolidation Fires Up With Cenovus-MEG Merger — Maybe!
Merger activity this year has been frequent in Canada’s oil and gas sector as companies strive for scale and efficiencies in an increasingly competitive landscape. The latest M&A salvo arrived in late August when MEG Energy agreed to a takeover offer from Cenovus Energy to create the largest bitumen producer in Alberta’s oil sands. With billions of barrels of reserves up for development, it is a chance for Cenovus to further consolidate and expand its existing lead in bitumen output from the oil sands. However, what might seem a straightforward corporate merger has been buffeted by a rival bid from Strathcona Resources in its attempt to create scale and ensure its own long-term competitiveness. In today’s RBN blog, we’ll examine the details of the two offers and what is at stake for all involved.
We Are The Champions – Could Alberta’s Oil Sands Reserves Be The Largest on Earth?
The US Energy Information Administration ranks Alberta’s bitumen oil sands reserves second or third to those of Saudi Arabia and Venezuela. However, evidence from the field and new research indicate that Western Canada’s oil reserves are possibly far larger and could rival or exceed those of the Saudis or the Venezuelans. Today contributor Mike Priaro begins a two part series describing Western Canada’s vast bitumen resources.
Levitating - Western Canada's Crude Oil Supplies to Reach Record Highs in 2021
Western Canada’s crude oil production, like in many other regions of the world during the spring of 2020, had to pull back sharply in response to the price and demand chaos brought about by COVID-19. By the end of 2020, oil production almost everywhere remained much lower or was being carefully managed to avoid creating another supply glut. In contrast, production in Western Canada has almost fully rebounded, and is being primed to increase to what could be all-time highs this year. With Alberta’s oil sands producers renewing their role as the long-standing driver of oil supply growth and the recent suspension of production limits in the province, the stage is set for us to review the most recent oil supply developments and future growth prospects.
