Alberta government gives the green light to 3 new oil sands projects, but don't expect them to be built anytime soon
The Alberta Energy Regulator (AER) approved 3 new oil sands projects this week:
Surmont Energy's 12,000 bbl/day steam-assisted gravity drainage (SAGD) Wildwood oil sands project
Husky Energy's 3,000 bbl/day cyclic steam stimulation (CSS) Saleski project
Blackpearl Resources' 80,000 bbl/day SAGD Blackrod project
Privately-held Surmont Energy has yet to make a final investment decision for its Wildwood project. CEO Mark Smith says his company is looking for financial backing to move forward with the first 3,000 bbl/day phase of development. Smith estimates about $125 million would be needed before an investment decision can be made.
Blackpearl CEO John Festival says his company has no plans to go out and build the newly approved project, but is open to a partnership to help it develop its first phase. The company is currently focusing on its Onion Lake project in Saskatchewan.
Husky says it is progressing Saleski with the aim of commercializing the development sometime within the next ten years. However, there is currently no development timeline for the project.