Canada is a global energy player, ranking number three in crude oil reserves (approx 175 billion barrels) and natural gas production and is the 6th largest oil producer in the world. Industry capital spend is expected to reach C$55 billion in 2012. There are currently three producing oil projects off Newfoundland; Hibernia, Terra Nova and White Rose.
Oil & gas sector in Canada
Canada is a global energy player, ranking number three in crude oil reserves (approx 175 billion barrels) and
natural gas production and is the 6th largest oil producer in the world. Industry capital spend is expected to
reach C$55 billion in 2012.
Canada is home to nearly 60% of world oil reserves (only 21% of the total) that are open to
private sector investment. This has attracted international investment from the U.S, Europe, the
Middle East and Asia.
Over 97% of Canada?s oil reserves are found in the oil sands of Northern Alberta and
About 20% of the oil sands ?covering only 3% of the entire oil sands area ? can be recovered
using the truck and shovel method. The total production capacity of current and proposed mining
projects is 3.5 billion barrels per day.
The future of the oil sands is in situ. Extraction methods such as Steam Assisted Gravity
Drainage (SAGD) and Toe-to-Heel Air Injection (THAI) are currently employed. Other
emerging technologies include geothermal, electro thermal dynamic stripping, etc.
Currently, there are 33 in situ projects operating (producing about 875,000 barrels per day), with
14 projects under construction, 33 with regulatory approval, 17 under regulatory review and over
50 announced. In total all these projects, once operating, could produce nearly 5.5 billion barrels
There are currently three producing oil projects off Newfoundland; Hibernia, Terra Nova and
White Rose. The Hebron project is expected to begin production in 2017.
Technological advances have ?unlocked? vast unconventional ? shale, tight and CBM ? gas
resources in Canada. It is now estimated the country has 100+ years of supply.
Key opportunities relating to oil sands activities focus on improving the environmental
performance of the industry. Examples of opportunities include:
? wastewater treatment,
? water reuse and disposal; and,
? residual treatment and management.
Land reclamation of the surface mining sites is also critical. Opportunities include:
? environmental monitoring,
? geotechnical monitoring; and,
? soil quality monitoring.
On the equipment side, vehicles that have the ability to operate on soft soils, bitumen skimmers,
new pumping technology for very heavy materials and anti-corrosion material are on the list.
In terms of new build, over 30 in situ projects have received regulatory approval and 14 are
under construction. CAPEX relating to a ?typical? 100,000 bb/day in situ plant is roughly C$1.3
billion, however, the real opportunity relates to the long-term maintenance, repair and operating
expenditures as the plants run for 30-40 years.
On the downstream side, two LNG export projects are proposed on the west coast to take
advantage of Asia?s increasing demand for energy. Pipeline proposals are also in the works to
increase access to both current (the U.S. is the number one importer of Canadian oil) and new
markets, specifically Asia.
Latest export opportunities ? Oil & Gas
Latest export opportunities - Canada
Getting into the market
As in most markets, relationships, flexible customer service, adherence to schedules and
specifications and long-term commitment are vital to winning customers. Health and safety is
also important not just of the manufactured kit but also in the record of the company itself.
Calgary is the corporate headquarters for all the major E&P companies in Canada. Major
engineering, procurement, construction (EPC) companies active in the oil sands have offices in
both Calgary and Edmonton. In addition, Edmonton, because of its proximity to the oil sands is
the service, supply and manufacturing centre. Companies active in Atlantic Canada have regional
offices in St. John?s, NL and Halifax, NS.
Major projects are generally let to EPC companies who then sub-contract. In-country
representation ? via a distributor, agent, partner or subsidiary ? is vital to doing business in
Canada because of the time differences. It also helps in the aftercare.
More about doing business in Canada
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
?Tracey Grindal, UKTI, Calgary. Tel: +00 1 403 539 2246 or email: firstname.lastname@example.org
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events ? Oil & Gas
Global Petroleum Show
June 12-14, 2012
Newfoundland & Labrador Oil & Gas Industries Association (NOIA) Annual Conference
June 18-21, 2012
International Pipeline Conference & Exposition
November 24-28, 2012
More about OMIS and other UKTI services for exporters