Abstract

The amount of proven reserves of oil sands in Canada is estimated to be 175 billion barrels, placing the deposit second in the world in size. Even if the production increases to the same peak level as the North Sea, the R/P ratio is still 80 years, showing the richness of the oil sands resource. The current combination of, the advantageous location adjacent to the extensive U.S. market, with established infrastructure for transportation, the decrease of development and production costs as a result of improved technology, and the recent rise in oil prices are attracting many investors to oil sands development. Canada Oil Sands Co., Ltd. (CANOS), through its subsidiary JACOS, started the pursuit of commercial bitumen production in 1978. After decades of technical trials, CANOS has implemented the SAGD method in 1997 and started production in 1999. It is currently producing 8,000 to 9,000 b/d of bitumen. Throughout its operation history, CANOS has faced many technical challenges and significant advances have been made. These challenges include; ·Application of horizontal well drilling technology. ·Proving the efficiency of the SAGD mechanism. ·Improving G&G evaluation accuracy using sequence stratigraphic framework and 3D seismic data. ·Improving reservoir evaluation quality with the help of sector models and 3D simulation models. ·Optimization of operations including improvement of steam-oil ratio. ·Analysis of volatile pricing of diluted bitumen. SAGD is a new innovative technology and requires the integration of various technical fields. With continuing room for improvement, SAGD offers challenging but worthwhile opportunities for geoscientists and petroleum engineers. The attractive investment environment resembles that of the North Sea development in its early days. In the North Sea, Japanese companies were at a disadvantage as late-comers. CANOS, on the other hand is, and plans to stay on the leading edge of Canadian oil sands development.

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