Oil Sands Production
Commercial production of oil from the Athabasca oil sands began in 1967, when Great Canadian Oil Sands Limited (then a subsidiary of Sun Oil Company but now incorporated into an independent company known as Suncor Energy) opened its first mine, producing 30,000 barrels per day (4,800 m3/d) of synthetic crude oil. Development was inhibited by declining world oil prices, and the second mine, operated by the Syncrude consortium, did not begin operating until 1978, after the 1973 oil crisis sparked investor interest.
However the price of oil subsided afterwards and although the 1979 energy crisis caused oil prices to peak again, during the 1980s, oil prices declined to very low levels causing considerable retrenchment in the oil industry. The third mine, operated by Shell Canada, did not begin operating until 2003. However, as a result of oil price increases since 2003, the existing mines have been greatly expanded and new ones are being planned.
According to the Alberta Energy and Utilities Board, 2005 production of crude bitumen in the Athabasca oil sands was as follows:
| 2005 Production | m3/day | bbl/day |
|---|---|---|
| Suncor Mine | 31,000 | 195,000 |
| Syncrude Mine | 41,700 | 262,000 |
| Shell Canada Mine | 26,800 | 169,000 |
| In Situ Projects | 21,300 | 134,000 |
| Total | 120,800 | 760,000 |
As of 2006, output of oil sands production had increased to 1.126 million barrels per day (179,000 m3/d). Oil sands were the source of 62% of Alberta's total oil production and 47% of all oil produced in Canada. The Alberta government believes this level of production could reach 3 Mbbl/d (480,000 m3/d) by 2020 and possibly 5 Mbbl/d (790,000 m3/d) by 2030.
Read more about this topic: Athabasca Oil Sands
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