The Voyageur oil sands project is stopped

Posted on March 31, 2013

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According to the World Energy Outlook 2012 report, the IEA is anticipating production of tight oil, shale oil etc., will increase dramatically in the USA at the same time as Canada’s oilsands industry will thrive. In this light, the information released by Canada’s largest oil company Suncor Energy Inc. on 27 March must come as a great disappointment for the IEA. Suncor has decided to abandon its upgrading project Voyager. We can read in an article in the Financial Post that, “Canada’s largest oil company said Wednesday the multibillion-dollar plant, a joint venture with France’s Total SA, will not be built”. The installation was intended for upgrading of bitumen from oilsand into synthetic crude oil. Production was to have been 200,000 barrels per day. The business plan was that the synthetic crude oil would be sent to the USA for refining, but when that plan was drawn up they had not anticipated the developments in the Bakken field: “Things change,” said one executive in the refining business. “Nobody in the whole business in North America or the world two years ago saw the growth rate of Bakken – nobody. And nobody saw three years ago the WTI-Brent disconnect.” It remains to be seen what the effects will be on the entire oilsands industry but, “the decision is also a blow to a cornerstone of Alberta’s oil sands industry, which for years has relied on mining raw bitumen and processing it into lighter oil.”

Here is a link to the article in the Financial Post: “Suncor scraps Voyageur oil sands project”.

And here is a link to an article about Suncor’s decision: Suncor cancels $11B Voyageur oilsands upgrader project north of Fort McMurray

We can read that Suncor Energy bought out its partner Total for $515 million. Total has also described what this means for its future planning: “Total E&P Canada Ltd. plans to funnel the $5-billion it will save over five years from not building the Voyageur upgrading plant in northern Alberta back into its global portfolio rather than spend it in the oil sands, its chief executive officer says.”

It is time to wind back expectations regarding future production from Canada’s oilsands and the question is if this will also be a deathblow to the Keystone XL pipeline.

(Swedish)
Enligt World Energy Outlook 2012 räknar man med att produktion av Tight Oil, skifferolja mm, skall öka dramatiskt i USA samtidigt som man även beräknar att Kanadas oljesandsindustri skall blomstra. Det besked som Kanadas största oljebolag Suncor Energy Inc lämnade den 27 mars måste därför vara en stor besvikelse för IEA. Suncor beslutade då att lägga ner uppgraderingsprojektet Voyageur. Vi läser ur en artikel i Financial Post: “Canada’s largest oil company said Wednesday the multibillion-dollar plant, a joint venture with France’s Total SA, will not be built”. Anläggningen var planerad för uppgradering av Bitumen från oljesand till syntetisk råolja. Produktionen skulle ha varit 200,000 fat om dagen. Affärsidéen var att den syntetiska råoljan skulle skickas till USA för raffinadereras, men då man planerade projektet hade man inte räknat med Bakken: “Things change,” said one executive in the refining business. “Nobody in the whole business in North America or the world two years ago saw the growth rate of Bakken – nobody. And nobody saw three years ago the WTI-Brent disconnect.” Det återstår att se hur hela oljesandsindustrin påverkas men “the decision is also a blow to a cornerstone of Alberta’s oil sands industry, which for years has relied on mining raw bitumen and processing it into lighter oil.”

Länk till artikeln “Suncor scraps Voyageur oil sands project”.

Här är en annan artikel om beslutet: Suncor cancels $11B Voyageur oilsands upgrader project north of Fort McMurray

Vi kan läsa att Suncor Energy köpte ut sin partner Total för $515-miljoner och Total har också beskrivit vad detta medför i deras framtida planering: “Total E&P Canada Ltd. plans to funnel the $5-billion it will save over five years from not building the Voyageur upgrading plant in northern Alberta back into its global portfolio rather than spend it in the oil sands, its chief executive officer says.”

Det är dags att skruva ner förväntningarna på framtida produktion från Kanadas oljesand och frågan är om detta också är nådastöten mot Keystone XL?

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