Journal of Canadian Petroleum Technology, Vol.45, No.1, 16-22, 2006
Asian-Pacific markets - A new strategy for Alberta oil
With new oil sands projects and expansions of existing projects coming onstream, it is anticipated that production of heavy crude and bitumen will reach more than 318,975 m(3)/d (two million barrels per day) by 2012, and over 794,937 m(3)/d (five million barrels per day) by 2030 (on a synthetic crude oil basis). It is assumed that most of this anticipated production can be marketed in the United States; however, the U.S. currently only accepts limited volumes of synthetic crude oil (SCO), as it must be blended with other crude to meet refinery specifications. This combination of limited U.S. refinery capacity and current SCO quality means there is risk that much of this new production either cannot be marketed, or that market price will be reduced because of oversupply, unless new markets can be found. An obvious new market for Canadian heavy oil and bitumen is the Asian-Pacific region, due both to increasing demand for petroleum products and proximity. The Alberta Energy Research Institute, in partnership with industry from Asia and Canada, is investigating both short and long-term exports of Alberta crude and value-added products to Asia. This paper provides an update on this study, which will identify the technology gaps that should be addressed to match Alberta products to Asian references.