Enrichment Regulation, Resource Potential and Prospects for Canadian Oil Sand Resources

Abstract

Canada possesses the largest oil sand resources in the world, concentrated in the three major deposits of Alberta Basin: Athabasca (including Wabasca), Cold Lake and Peace River. The enrichment of oil sand resources is closely related to the evolution of the Alberta basin. At the stage of the cratonic platform, Devonian to Middle Jurassic hydrocarbon source rocks were widely developed. At the foreland basin stage, multiple sets of high-quality reservoir-caprock combinations and extensively connected sand bodies of Cretaceous were developed. From the end of the Cretaceous period to the beginning of the Laramide Orogeny movement period, large-scale of fluid flowed from the west to the east, which provided the dynamic conditions for the long-range migration of hydrocarbon. During Eogene to Neogene period, the northeastern part of Alberda Basin was strongly lifted, the relatively open oxidation environment was formed by the denudation and exposure of the Cretaceous sandstone bodies. All mentioned factors have combined to form a tremendous amount of oil sand resources in Canada. Under the existing technical conditions, the remaining recoverable oil sand resources in Canada is 303 billion barrels, the reserves is 164 billion barrels, which is 96% of Canadian total crude oil reserves, 10% of the world’s total crude oil reserves. In recent years, the technology development for oil sands recovery has improved constantly, and the production cost of oil sands has decreased constantly from 2014 to 2018. The production cost of in-situ oil sands has dropped by about 16% and the SAGD production cost has dropped by about 14%. With the gradual reduction of the potential of conventional petroleum resources, the shock rebound of international oil prices, and the emergence of new technologies, new processes, new tools, etc., all the favorable factors have promoted the economic and effective development of oil sands. The production of Canadian oil sands has raised from 2,223 Mb/d in 2014 to 3,123 Mb/d in 2018 and will continue to rise. It is expected that the production will increase to 4,467 Mb/d in 2040, which will become an important supplement to conventional crude oil.