• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 8 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 1 hour Indonesia Stands Up to China. Will Japan Help?
  • 2 hours Beijing Must Face Reality That Taiwan is Independent
  • 2 hours Gravity is a scam!
  • 1 day What's the Endgame Here?
  • 3 mins Trump has changed into a World Leader
  • 7 hours US Shale: Technology
  • 2 days 10 Rockets hit US Air Base in Iraq
  • 2 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day Canada / Iran
  • 2 days Wind Turbine Blades Not Recyclable
  • 2 days Remember: Only the Poor Can Reach the Kingdom of God
MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Premium Content

Is This The Beginning Of An Oil Sands Revival?

New life was breathed into the Canadian oil sands with a decision by foreign-owned Harvest Operations Corp to commission its BlackGold project south of Fort McMurray.

The Calgary-based arm of South Korean state-owned Korea National Oil Corp announced on Dec. 21 it will start the 10,000 barrels of oil per day (bopd) steam-assisted gravity drainage (SAGD) operation, construction at which was halted in 2015 due to low oil prices.

In a press release on SEDAR, Harvest said that major work at the site has already started, with the aim of commissioning wells and starting steam injection in Q2 2018. Production is slated for the third quarter.

It cites "the stabilization of crude oil pricing and the improved operational and financial performance of Harvest’s conventional business as factors in its decision to move forward with BlackGold."

The start-up has been helped through a refinancing of $1.36 billion of maturing debt, plus the raising last month of an additional quarter-million in financing, the company said.

Global News notes the project was built for around $900 million and was "considered mechanically complete" when it was shelved in the spring of 2015 when WTI oil prices were around $50 a barrel, half as much as a year earlier.

WTI on Thursday closed at $59.84, for a percentage gain of 0.34%. Related: 2018: The Year Of The Oil Bulls

The Canadian oil sands have seen an exodus of foreign investment since the oil price collapse of 2014 and US shale plays gathered momentum. The divestments have included Royal Dutch Shell, Marathon Oil, Statoil and ConocoPhillips.

Yesterday AXA SA, the third-largest insurer in the world, said that it will divest about $822 million from the main oil sands producers and associated pipelines, and will stop further investments in these businesses. The move could affect companies such as TransCanada, Enbridge and Kinder Morgan.

But as foreign companies have pulled out money, Canadian firms have made multi-billion-dollar deals to expand their holdings. According to energy consultancy Wood Mackenzie, Canadian ownership of oil sands production now sits at over 80%, reported the Calgary Herald.

By Mining.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • George Shawnessey on January 07 2018 said:
    Oil Sands are the filthiest energy source imaginable. Good think they won't be profitable unless oil sells for $100 per barrel, which will never happen.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News