AM-07-38 Alberta Energy Supply Solutions

Description:

This paper outlines Alberta_s vision for oil sands development over the next 25 years, as formulated by the joint industry/government Hydrocarbon Upgrading Task Force. Production is forecast to increase from the current 1.1 MBD to 3.6 MBD by 2020 and 5 MBD by 2030. This development will provide an exceptional opportunity to assure secure feedstock supplies for North American refiners. But there will be major challenges, such as adapting process units to the distinct oil sands qualities and consume by-product streams. Developers will also have to consider new business models, such as integrated upgrading/refining/petrochemical plants, located in eco-industrial complexes to maximize economic gain by efficiencies in the utilization of labour, infrastructure and common services during both construction and operations. Governmental collaboration can achieve additional efficiencies. Shipment of increased oil sands output to US locations will require new pipeline capacity and routing. Regulatory streamlining could expedite these additions. Governments in both the US and Canada need to work together on facilitating the free flow of skilled workers and professionals to meet the large human capital needs of oil sands development. Alberta and the US already have strong common interests and established relationships. Through collaboration, we have the ability to translate the Alberta oil sands reserves into a secure and affordable energy source for decades to come.