Sask. a high-energy province
Poised to overtake Alberta as Canada's top producer
By Bruce Johnstone, Saskatchewan News Network April 23, 2009
Saskatchewan could become North America's energy powerhouse, thanks to its 'huge' heavy oil resource, the Bakken light oil play and large-scale coal, oil shale and other unconventional energy sources, the Saskatchewan Oil and Gas Forum was told Thursday.
"Saskatchewan could become the No. 1 oil and gas producer in the country," Quinton Hardage of North Rim Exploration Ltd. told delegates at the two-day forum at the Delta Regina.
All that's needed is billions of dollars of investment in technology and infrastructure by multinational energy companies with deep pockets, he added.
Heavy oil presents challenges
Since 2005, Saskatchewan has surpassed Alberta in terms of average oil well productivity and could soon surpass our neighbour to the west in terms of conventional oil production, said the Saskatoon-based geological engineer.
Hardage's optimism is based on a number of strengths Saskatchewan has in its fossil fuel resources, the biggest one being heavy oil.
With more than 21 billion barrels of oil in place, the province's heavy oil resource is considered the largest in the province and the one with the greatest potential for development.
But the viscous heavy crude located mainly in the Lloydminster and Kindersley areas is hard to produce and requires significant upgrading through enhanced oil recovery (EOR) techniques, such as steam or fireflooding, or chemical injection.
Similarly, light oil resources, such as the deeper Bakken formation in the southeast, require horizontal drilling and fracturing techniques to increase recovery rates by 20 per cent.
Hardage said the Bakken deposit is a "major, world-class oil resource," with an estimated 100 to 400 billion barrels of oil -- roughly one quarter of which is located in Saskatchewan. "The Bakken should become Saskatchewan's primary source of conventional light oil production for the next decade," he said.
Mature light oil fields, such as in Weyburn and Midale, are using CO2 injection to boost recovery rates above 15 per cent. From 2000 to 2006, seven million tonnes of CO2 were injected into the Weyburn-Midale field, with each tonne producing three to four barrels of oil.
Deep formations
Bitumen or super-heavy oil is found in the northwest, but in relatively deep formations, requiring 'in situ' or in place recovery, rather than surface mining as in Alberta.
"With proper infrastructure and enhanced recovery investments, Saskatchewan's oil production could increase dramatically from commercialization of northwest Saskatchewan's bitumen resource," said Hardage.
He said "cross-applications" of energy technologies hold perhaps the most promise for Saskatchewan's energy future.
Captured CO2 from coal-burning thermal generating stations could be used for enhanced oil recovery production. Potash mines could be powered by nearby coal resources, with captured CO2 stored or sold to oil and gas companies.
Clean coal technology, such as carbon capture and storage (CCS), and coal-to-liquid technologies, such as coal liquefaction, and coal gasification, provide the greatest potential for the province.
"As oil and gas prices rise over the next few decades, Saskatchewan's resources will become increasingly attractive on a global level," said Hardage.
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