TWA Article Current Outlook for Oil and Gas Megaprojects: A Discussion

Logan Popko, Cenovus, Ronald Dusterhoft, Halliburton, Pete Hagen, Chevron Australia, Daniel Picard, Petrobras 

Why does this resource need to be developed? Logan Popko (LP): Despite the recent surge in oil supply from US tight oil plays and international production, high-quality, large volume resources continue to be scarce across the world and I believe that development of the Canadian oil sands will be critical to meeting the world’s increasing energy demand. The technology we apply at the Christina Lake oil sands project is called steam-assisted gravity drainage (SAGD). It involves drilling horizontal wells to target a resource that is too deep to mine and then injecting steam into it to mobilize oil that can be as hard as a hockey puck at initial reservoir conditions. However, not all oil sands projects are created equal, and I believe that it will be the highest quality and most innovative projects that have the best chance of moving forward in future years. Fortunately, Christina Lake is well-suited to continue to be an industry leader as we have a fantastic reservoir (more than 40 m thick in some areas) and have continuously embraced and encouraged innovation to improve our economic and environmental performance.