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The future of the oil sands
GLOBAL DEMAND DEMAND & & INVESTMENTS INVESTMENTS | | ECONOMICS ECONOMICS | | TECHNOLOGY TECHNOLOGY | | ENVIRONMENTAL ENVIRONMENTAL CHALLENGES CHALLENGES AND AND SOLUTIONS SOLUTIONS | | ADVOCACY ADVOCACY | | PEOPLE PEOPLE & & COMMUNITIES COMMUNITIES GLOBAL

A Canadian resource of global significance, Albertas oil sands are drawing increasing investment, talent and interest from around the world, fuelling the development of an industrial complex with the potential to both help meet rising energy needs and underpin Canadas economy for the long term. > Inside, a look at the organizations and people working to address the technical, ecological and other challenges required to fully transform this natural endowment into a modern powerhouse.

Progress is in our genes

Meeting the worlds growing energy needs requires a lot of big ideas. Like building a cutting-edge Steam Assisted Gravity Drainage (SAGD) plant for the vast oil sands reserves in Alberta. Its already making a difference in how bitumen is produced, so you would think that were completely content. And we are proud of our achievements, but this is just the beginning. Our ambition is to always improve what we do, and thats why we are constantly looking for new and better ways to increase recovery and reduce our impact on the environment. We call it never being satisfied.

Learn more at neversatisfied.statoil.com

Always evolving Never satisfied

An INFORMATION information FEATURE feature AN

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Special
The future of the oil sands
GLOBAL DEMAND & INVESTMENTS | ECONOMICS | TECHNOLOGY | ENVIRONMENTAL CHALLENGES AND SOLUTIONS | ADVOCACY | PEOPLE & COMMUNITIES

Big time
ften cast as an ecological pariah, the future appears to be brightening for Canadas oil sands as domestic and firms develop pioneering foreign rms solutions that reduce the environmental footprint of extraction, while also powering commercial growth. Leading experts agree that Canada is at the vanguard of research and production that will vault the sector into new global opportunities and acclaim. Ranked third in the world, behind only Venezuela and Saudi Arabia, in terms of proven oil reserves, Canada is blessed with the natural resources and expertise to meet the growing international demand for energy a fact not lost on those who are on the cutting edge of the evolution of the oil sands. The main focus in the past was to develop the technology to make the oil sands competitive against other crudes in the global marketplace, says Dr. Eddy Isaacs, CEO of Alberta Innovates Energy and Environment Solutions. The current focus is to make it also environmentally competitive. Dr. Isaacs says this is being accomplished at the oil sands by increasing energy efciency, efficiency, reducing emissions of existing processes by adding lower-emission, next-generation technologies for production, upgrading refining oil sands-derived and rening products, tapping into carbon capture utilization and decreasing fresh water use. Others point to the fact that Canadian research and development for the oil sands has created a technology and innovation juggernaut that will have a positive, lasting impact not only in Canada, but elsewhere in the world where oil and gas are produced. Beyond the hundreds of thousands of jobs created across Canada and North America, the oil sands represent a unique opportunity for Canada to play a role as a global supplier of oil, especially as demand continues to aggressively grow in places such as China and India, says Travis Davies, issues manager with the Canadian Association of Petroleum Producers. He says the oil sands also generate billions of dollars in tax and royalty revenue for governments, which are applied to areas such as health care, education and vital infrastructure, helping to sustain the high quality of life in Canada. Canada is taking the lead when it comes to environmental research and development, says Chris Powter, executive director of the Oil Sands Research and Information Network at the University of Alberta. The oil sands represent a longterm economic engine for the entire country, and not only for the wealth they provide through direct sales of the commodity, but through the development of technologies required to exploit the resource in an environmentally sustainable manner, Mr. Powter says. These technologies will be marketable to other countries, as they focus on extracting more unconventional hydrocarbon sources. He notes that there are several examples of how research has significant improveresulted in signicant ments to key industrial processes, which in turn have lessened environmental impact. There have been reductions in processing temperatures that result in reduced greenhouse emissions, says Mr. Powter. There have been reductions in water use per barrel of production, and more rapid dewatering fine tailings. of ne He stresses that ongoing research will further reduce the long-term effects of oil sands production, such as trials to evaluate efficacy of new bird deterrent the efcacy

Canadians leading a global effort on environmentally competitive oil sands development

The oil sands represent a long-term economic engine for the entire country, and not only for the wealth they provide through direct sales of the commodity, but through the development of technologies required to exploit the resource in an environmentally sustainable manner,
Chris Powter is the executive director of the Oil Sands Research and Information Network at the University of Alberta field-scale demonsystems and eld-scale strations of wetlands reclamation. Mr. Davies says that the best new technologies in many cases are those that improve both economic and environmental performance. With in situ operations, which involve injecting steam into wells to soften, then recover, heavy oil, there is now a reduced use of natural gas, he says. By using additives usually light hydrocarbons such as butane or other gases, which are then recovered and recycled to make steam in the oil sands reservoir, efficiency improves, production efciency meaning less energy is used to produce more oil. That is better for the environment and better for the bottom line. The largest challenge with the oil sands, Mr. Davies says, is adapting the innovative technologies and processes to the vast commercial scale of the projects there. But if we step away from technology and research for a moment, one of the other major challenges is availability of skilled labour, he says. Companies and governments need to focus on training and skills development across Canada, as well as accessing foreign labour and economic immigrants. As for public perception about the future of the oil sands, Dr. Isaacs believes Canadians are factoring the economy as well as the environment into their views. My sense is that people see the oil sands as an economic engine for Canada, but with a caveat, he says. And that is that they have to be developed in a sustainable manner.

INSIDE
HR departments get creative to attract oil sands talent.
Page OS 2

Oil sands producers set sights on Asian markets.

Page OS 4

Fort McMurray offers more than just the oil sands.

Page OS 8

support SUPPORT

Organization supports technologies for economical, efficient and sustainable oil sands production
ustainable Development Technology Canada (SDTC) has embraced the challenge of easing the environmental impact of oil sands production. not-for-profit The federal not-for-prot finances foundation, which nances and supports the development and demonstration of clean technologies, helps to make oil sands projects less costly to operate, while improving yields and lessening their effect on the environment, says Vicky Sharpe, president and CEO of SDTC. Canadas economy has long been built on natural resources, she says. The oil sands are no exception, and will continue to play a role as a cornerstone of the economy. Technology solutions from SDTC-supported cleantech companies help increase the volume and reduce the costs of oil sands production, while alleviating environmental impacts. Dr. Sharpe says that, to date, SDTCs portfolio of 24 cleaner fossil fuels projects has a total value of $250 million. The oil sands industry plays an active role by contributing directly to SDTC-supported projects, she SDTC, Page OS 4

online? ONLINE?
For more information, visit Globeandmail.com/oilsandsfuture.

Bringing Clean Technologies to the Oil and Gas Industry

A technology that uses less water to extract oil. An innovation that safely stores carbon emissions deep underground. Tools that make it easier, safer and still less costly to monitor pipelines and avoid spills. Find out how SDTC supports the commercialization of clean technologies like these at www.sdtc.ca.
Contact us for information on how SDTC supports Canadian cleantech development and commercialization.

OS 2 An information feature OS 2 AN INFORMATION FEATURE

t h e g l o b e a n d m a i l t u e s DAY, O c t o b e r 2 , 2 0 1 2 T H E G L O B E A N D M A I L T U E S DAY, O C T O B E R 2 , 2 0 1 2

The FUTURE future OF of THE the OIL oil SANDS sands THE

HR departments scale up efforts to attract, retain talent

ompanies operating in ompanies operating in the booming oil sands the booming oil are addressing a sands manare addressing a manpower shortage head on with power shortage head on with pro-active human resources pro-active human resources departments leading the way. departments leading the way.and Given evolving technology Given evolving and a continued focustechnology on sustainable a continued focus on as sustainable development as well cost mandevelopment as well cost management, HR staff areas adapting agement, HR staff are adapting to trends that affect the oil sands to trends that affect the oil sands workforce. workforce. Organizations such as the PeOrganizations such as the Petroleum Human Resources Countroleum Human Resources Council of Canada compile employcil of Canada compile employment information that lists job ment information that lists job categories and labour outlooks. categories and labour outlooks. Research is also conducted on Research is also conducted on future growth projections. future growth projections. A recent survey by the council A recent survey by the council showed that attraction and retenshowed that attraction and retention of workers in hard-to-recruit tion of workers in hard-to-recruit locations topped the list of presslocations topped the list of pressing workforce challenges. That ing challenges. That wasworkforce followed by labour and skills was followed by labour and skills shortages, employee turnover/ shortages, employee turnover/ retention, and managing producretention, and managing productivity and employee engagement. tivity and employee engagement. At Cenovus Energy, a Canadian Cenovus Energy, a offices Canadian oilAt company with head in oil company with head ofces in Calgary, attention is always given Calgary, attention is always given to bridging the labour gap, says to bridging the labourWilkinson. gap, says spokesperson Jessica spokesperson Jessica Wilkinson. Making sure Cenovus has the apMaking sure Cenovus the appropriate staff neededhas to expand propriate staff needed to expand its operation is an important part its operationbusiness is an important part of corporate planning, of corporate business planning, she explains. she explains. Cenovus has developed a Cenovus has developed a to long-term workforce strategy long-term workforce strategy to address these issues, says Ms. address these issues, says Ms. Wilkinson. We currently have Wilkinson. We 4,700 currently have a staff of about people. By a staff of about 4,700 people. By 2021, we expect that number will 2021, we expect that number will rise to about 7,000. rise to says about 7,000. She that Cenovus has a She says that Cenovus has a robust recruitment program, and robust recruitment program, features a strong student and and features a strong student and new-graduate initiative to ensure new-graduate initiative to ensure that talented, skilled people are that talented, skilled people are attracted to the business. attracted to the business. Internal promotions, succesInternal promotions, succession planning and retention are sion planning and retention are also important elements of our also important elements of our plan, she explains. We are also plan, explains. We are also able toshe offer long-term work for able to offer long-term for our contractors, greatlywork reducing our contractors, greatly reducing

workforce WORKFORCE

facts FACTS
Oil sands jobs OIL SANDS JOBS There will be 35,000 jobs in the There will be 35,000 jobs incent the oil sands in 2021, up 73 per oil sands in 2021, up 73 per cent from 2011. from 2011. Technology will remain a gameTechnology will remain a gamechanger in oil sands production. changer in oil sands production. As a result of widespread use of As a result of widespread use of in situ extraction technologies, in technologies, in situ situ extraction production will overtake in situ production will overtake mining production after 2015. mining production after 2015. By the numbers BY THE NUMBERS

20,304 20,304 8,217 8,217 8,110 8,110

people employed in the oil people employed in the oil sands in 2011 sands in 2011

jobs (40% of workforce) in jobs (40% of workforce) in in situ operations in situ operations

the seasonality that is often the the seasonality that gas is often the norm in the oil and industry. norm in the oil and gas industry. Jackson White, manager of Jackson White, manager talent acquisition at Devonof talent acquisition Devongas Canada, an oil andat natural Canada, an oil and natural gas exploration and production exploration and production company, says the sector is trying company, the is trying to addresssays some of sector the challenges to address some of the challenges associated with drawing from a associated with drawing from a limited talent pool. limited talent pool. The industry currently faces The industry currently faces the challenge of addressing abunthe challenge of addressing abundant opportunities with limited dant opportunities withWere limited labour supply, he says. labour supply, he with says.industryWere trying to come up trying to come up industrywide solutions, so with Devon isnt wide solutions, Devon isnt just hiring fromso competitors. just hiring from competitors. Its about tapping into other Its about pools tapping into other available of skilled workers available poolsand of skilled workers across Canada supporting across Canada and supporting them to make the transition to them to make the transition to industry. industry. He says the federal governHe says the federal government has done a lot in a short ment has doneto a lot inthe a short period of time help sector period of time to help the sector with its HR challenges. with its HR challenges.

Were trying trying to to come come up up Were with industry-wide soluwith industry-wide solutions, so so Devon Devon isnt isnt just just tions, hiring from competitors. hiring from competitors. Its about about tapping tapping into into Its other available pools of other available pools of skilled workers across skilled workers across Canada and and supporting supporting Canada them to make the transitransithem to make the tion to industry. tion to industry.
Jackson White Jackson White is the manager of talent acquisition is manager of talent acquisition at the Devon Canada at Devon Canada

Thats been done by reducing Thats been done and by reducing some of the barriers time some ofto the barriers and time it takes bring foreign workit takes bring foreign workers into to the country, Mr. White ers into the country, Mr. says, and still doing it in White a very says, and still doing it in a are very responsible way, where we responsible way, where we are protecting the needs of Canadiprotecting the needs of Canadians, making sure we have jobs for ans, making sure we have jobs for Canadians. Canadians. From an industry-wide standFrom an industry-wide standpoint, there needs to be effective point, there needs to be effective collaboration between industry, collaboration between industry, government and labour supply government labour stakeholdersand in order to supply close stakeholders in order to close any labour and skills gaps, says any labour and executive skills gaps, says Cheryl Knight, direcCheryl executive director and Knight, CEO of the Petroleum tor and CEO of the Council Petroleum Human Resources of Human Canada. Resources Council of Canada. Ms. Wilkinson notes that the Ms.important Wilkinsonthing notescompanies that the most most important thing companies can do is to create an environcan do is to create an environment where people enjoy going ment where people enjoy going to work. to Once work. we get top people, we Once we get top people, we want to keep them, she says. want to keep them, she says.

jobs (40% of workforce) in jobs (40% of workforce) in mining operations mining operations

3,997 3,997 85% 85%

jobs (20% of workforce) in jobs (20% of workforce) in upgrading upgrading

of oil sands workforce on-site of oil sands workforce on-site

$19 billion billion $19 105% 105%

invested in oil sands in 2011 invested in oil sands in 2011

growth of in situ positions by growth 2021 of in situ positions by 2021

Source: Petroleum Human Resources Source: Petroleum Human Resources Council of Canada Council of Canada

Shell employees work on the wellhead of the first Quest CO2 injection well. The Quest project will transport CO2 from Shell employees work on the wellhead to of injection the first Quest well. The Quest project will transport CO2 from 2 injection the Scotford Upgrader, near Edmonton wells. CO photo: supplied the Scotford Upgrader, near Edmonton to injection wells. PHOTO: SUPPLIED

This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com. This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com.

We upgrade in Canada.

We

extract in Canada.

We

rene in Canada.

Global energy demand could nearly double by 2050. Shell had to come up with innovative ways to meet that demand. One of the great things we do with our oil sands product is we turn it into jet fuel. We extract in Canada. We upgrade in Canada. We refine in Canada. Im passionate about the energy products we provide to Canadians and the rest of the world, not to mention the thousands of employment opportunities we create by what we do.
Tony Bessey Integration Manager Shell Canada Energy

The Canadian Association of Petroleum Producers (CAPP) represents member companies that produce over 90 per cent of Canadas natural gas and crude oil, including Canadas Oil Sands Producers.

A message from Canadas Oil Sands Producers. oilsandstoday.ca

Energy at work for all Canadians.

tH hE eG gLO loB bE eA aN nD dM mA aIiL l T tU uE eS sDAY, DAY, O OC cTO toB bE eR r2 2,, 2 20 01 12 2 T

An INFORMATION information FEATURE feature OS OS 3 3 AN

The FUTURE future OF of THE the OIL oil SANDS sands THE
expert OPINION opinion EXPERT

COSIA aims to help make Canada an undisputed global energy leader

facts FACTS
The OIL oil SANDS sands BY by THE the THE numbers NUMBERS

By Dan Wicklum Chief Executive, COSIA

arlier this this year, year, news news arlier outlets carried carried the the powerpoweroutlets ful image image of of the the leaders leaders ful of 12 12 major major oil oil sands sands producing producing of companies, with with a a combined combined companies, global market market capitalization capitalization of of global more than than $750 $750 billion, billion, signing signing more the founding founding charter charter for for a a new new the organization called called Canadas Canadas Oil Oil organization Sands Innovation Innovation Alliance, Alliance, or or Sands COSIA. The The event event marked marked the the COSIA. launch of of a a bold bold initiative initiative that that launch will play play a a part part in in making making Canada Canada will an undisputed undisputed global global energy energy an leader. leader. COSIAs vision vision is is To To enable enable rereCOSIAs sponsible and and sustainable sustainable growth growth sponsible of Canadas Canadas oil oil sands sands while while delivdelivof ering accelerated accelerated improvement improvement ering in environmental environmental performance performance in through collaborative collaborative action action and and through innovation. innovation. Oil sands sands producers producers made made Oil great strides strides in in increasing increasing the the great efficiency and and reducing reducing the the efciency environmental footprint footprint of of oil oil environmental sands production production during during the the sands first half-century half-century of of commercommerrst cial development. development. As As the the sector sector cial matures, it it only only makes makes sense sense to to matures, collaborate and and innovate innovate in in order order collaborate to speed speed the the pace pace of of environmenenvironmento tal performance performance improvement improvement tal in COSIAs COSIAs four four environmental environmental in priority areas: areas: water, water, land, land, GHGs GHGs priority and tailings. tailings. and The key key words words in in the the statestateThe ment, and and the the ones ones on on which which ment, oil sands sands industry industry leaders leaders oil are focused, focused, are are accelerated accelerated are improvement, collaborative collaborative improvement, and innovation. innovation. However, However, and delivering on on a a vision vision statement statement delivering and realizing realizing an an organizations organizations and potential can can be be more more complex complex potential than it it may may appear. appear. than In most most elds, fields, technology technology In improves over over time. time. Todays Todays cars cars improves are far far more more fuel fuel efcient efficient and and are reliable than than their their predecessors. predecessors. reliable A large large companys companys computer computer A

$17.2 billion
Capital spending spending on on in in situ situ Capital mining and and upgrading upgrading mining

$3.7 billion
Royalty payments payments to to the the Royalty province of of Alberta Alberta province

135 million
Barrels of of in in situ situ bitumen bitumen Barrels reserves reserves Leaders of of the the 12 12 major major oil oil sands sands producing producing companies companies formed formed COSIA COSIA earlier earlier this this year. year. PHOTO: photo: COSIA cosia Leaders system in in the the 1960s 1960s had had less less total total system processing power power than than a a single single processing smartphone has has today. today. Oil Oil sands sands smartphone technology has has also also improved improved technology dramatically since since the the rst first dramatically extraction experiments, experiments, reducreducextraction ing the the environmental environmental impact impact ing of each each barrel barrel produced. produced. The The of question facing facing COSIA COSIA is is how how question best to to speed speed up up the the pace pace of of the the best natural technology technology improvement improvement natural over time. time. over A particular particular challenge challenge in in A the case case of of the the oil oil sands sands is is the the the capital-intensive nature nature of of the the capital-intensive industry. Oil Oil sands sands production production fafaindustry. cilities cost cost billions billions to to build, build, and and cilities then produce produce oil oil for for many many years. years. then Significant technology technology change, change, Signicant therefore, can can take take time time to to impleimpletherefore, ment and and involves involves nancial financial risk. risk. ment Through COSIA, COSIA, companies companies can can Through share the the risk risk of of developing, developing, testtestshare ing and and piloting piloting new new technolotechnoloing gies, speeding speeding implementation implementation gies, and creating creating momentum momentum behind behind and potential environmental environmental breakbreakpotential throughs. throughs. Taking collaborative collaborative action action is is Taking a second second objective objective that that is is easier easier a said than than done. done. Public Public opinion opinion said tends to to see see the the oil oil sands sands indusindustends try as as one one entity, entity, rather rather than than as as a a try collection of of companies companies that that are are collection also direct direct competitors. competitors. also In forming forming COSIA, COSIA, industry industry In leaders have have identied identified the the secsecleaders tors traditional traditional approach approach to to tors intellectual property property and and innovainnovaintellectual tion funding funding as as barriers barriers to to true true tion collaboration. An An early early challenge challenge collaboration. for COSIA, COSIA, then, then, has has been been to to for define the the legal legal framework framework to to enendene sure that that the the best best environmental environmental sure ideas can can be be shared shared while while mainmainideas taining the the incentive incentive to to innovate, innovate, taining and ensuring ensuring companies companies remain remain and full competitors competitors in in all all business business full areas. This This work work has has been been sucsucareas. cessful, and and key key legal legal agreements agreements cessful, have already already been been inked. inked. have The third third key key element element in in the the The COSIA vision vision statement statement is is ininCOSIA novation. While While innovation innovation can can novation. mean many many different different things things to to mean different people, people, at at COSIA, COSIA, we we different take an an expansive expansive view: view: COSIA COSIA take companies understand understand that that idea idea companies generation is is just just as as important important as as generation traditional research research and and develdeveltraditional opment, testing testing and and piloting. piloting. opment, COSIA companies companies know know that that COSIA sharing research research results results and and best best sharing practices can can be be just just as as important important practices as sharing sharing technology, technology, and and that that as innovative corporate corporate and and sectoral sectoral innovative cultures do do not not usually usually happen happen cultures spontaneously they they are are deliberdeliberspontaneously ately fostered fostered and and developed. developed. ately Acknowledging that that they they Acknowledging do not not have have a a monopoly monopoly on on do good ideas, ideas, COSIA COSIA members members good will engage engage both both traditional traditional will and non-traditional non-traditional partners partners and in generating, generating, developing developing and and in implementing environmental environmental ininimplementing novations. For For all all these these reasons, reasons, a a novations. disciplined approach approach is is required required disciplined to effectively effectively set set specic specific goals goals to and innovation innovation agendas. agendas. and With the the completion completion of of supsupWith porting legal legal frameworks, frameworks, alignalignporting ment of of priorities priorities and and linkage linkage ment with partners, partners, COSIA COSIA will will be be the the with overarching collaborative collaborative hub hub overarching that will will generate generate new new thinking, thinking, that launch new new projects, projects, and and drive drive launch accelerated environmental environmental perperaccelerated formance in in the the oil oil sands sands sector. sector. formance COSIA member member companies companies COSIA fully appreciate appreciate that that achieving achieving fully the ambitious ambitious vision vision set set out out in in the the COSIA COSIA Charter Charter will will require require a a the continued, substantial substantial commitcommitcontinued, ment of of people people and and resources. resources. ment But there there is is strong strong company company But support for for COSIA, COSIA, ranging ranging from from support technical experts experts to to executives, executives, technical as was was evident evident by by the the impressive impressive as lineup in in the the photo photo that that kicked kicked it it lineup off in in March March 2012. 2012. off Canadas oil oil sands sands represent represent Canadas

1.46 million
Barrels of of oil oil a a day day of of both both Barrels mining and and bitumen bitumen mining

1.19

Barrels a a day day of of upgrader upgrader Barrels capacity capacity

$36.7 billion
Industry revenue revenue Industry
Source: Canadian Canadian Association Association of of Petroleum Petroleum Source: Producers statistics statistics for for 2010 2010 Producers

a tremendous tremendous strategic strategic asset asset for for a the country. country. The The companies companies that that the will realize realize the the value value of of that that asset asset will for Canadians Canadians share share a a determidetermifor nation to to make make the the oil oil sands sands nation a showcase showcase of of world-leading world-leading a environmental innovation innovation and and environmental environmental performance. performance. environmental Canadas Oil Oil Sands Sands Innovation Innovation Canadas Alliance (COSIA) (COSIA) is is an an alliance alliance of of Alliance oil sands sands producers producers focused focused on on acacoil celerating the the pace pace of of improvement improvement celerating in environmental environmental performance performance in in in Canada's oil oil sands sands through through collabcollabCanada's orative action action and and innovation. innovation. orative

a hand signed c birthday.

company is on doing the nd doing it spectfully.

ployees work a well oiled chine, and we e fun doing it.

Companywide it feels like a big

The work that I am responsible for Volunteerism and charity. The is meaningful and challenging
- Devon employee

team, with everyone wanting to do a good job.

are very important here.

Ask employees why Devon is a great place to work and youll get lots of reasons. But the biggest reason of all? Its our sta. Advance your career in the oil andis gas industry. Join Devon. Devon highly involved jobs.dvn.com
in the communities where it operates. It gives time o for employees to volunteer.

organizatio has a stron vision for t future.

Employees
fairly rega their age.

Commitment Runs Deep

newest and best technology to maintain and support

that growth. This is giving us, the employees, the

Best 2012 Devon is experiencing rapid growth and is utilizingWorkplaces the

Canada

os 4 An information feature

t h e g l o b e a n d m a i l t u e s DAY, O c t o b e r 2 , 2 0 1 2

The future of the oil sands

Exports

Canada poised to capitalize on global oil demand

ith the dramatic rise of the Chinese economy, the stage is set for Canadian oil sands firms to capitalize on the increased global demand for oil. But efficient transporting of Alberta crude to Asia-bound tankers on Canadas west coast must be established, say oil industry insiders, to take full advantage of this international opportunity. According to estimates, the lost revenue stream last year for Canada as a result of not having a diversified export market was about $19 billion, says Chris Seasons, president of Devon Canada Corporation, an oil and natural gas exploration and production company. That loss has an impact through the whole value chain, Mr. Seasons says. It is a loss for oil and gas companies, but also federal and provincial governments lost revenue that could contribute to the Canadian economy in the form of infrastructure, jobs and investment. Mr. Seasons recognizes that current exports are being sent through Vancouver via the Trans Mountain pipeline. The proposed expansion of that line is meeting with some resistance. We know there are concerns. We know British Columbians need to see the benefits, he says. We have work to do as an industry to gain their trust. Supporters of additional pipelines to the west coast say construction is critical to the industry, given the soaring energy demand in Asia and the rapid growth of Canadas oil sands. Dr. Eddy Isaacs, CEO of Alberta Innovates Energy and Environment Solutions, says the dramatic rise in Asias demand for energy is likely to continue for several years. From a Canadian economic perspective, he says, this demand will keep commodity prices high and lead to export growth. Canada, therefore, needs to diversify its markets for both oil and natural gas. The Asian market is where the growth in demand will make the investment in infrastructure worthwhile, Dr. Isaacs explains. Canada also needs billions of dollars in investment to develop its energy resources, and Asian investments should be welcomed. Investment firms such as Middlefield Group have seen clients reacting to the increase in global demand for oil. Robert Lauzon, the managing director at Middlefield for Western Canada, says increased oil demand has driven prices considerably higher over the past decade, with the strong pricing environment resulting in many Canadian oilproducing companies becoming dividend-paying entities. Our clients have been allocating an increasing proportion of their portfolios to these dividend-paying, oil-producing companies, he says, adding that since 1979, Middlefield has been developing investment management expertise in the energy sector. In the late 1990s, we began to construct both our growth and

The Asian market is where the growth in demand will make the investment in infrastructure worthwhile. Canada also needs billions of dollars in investment to develop its energy resources, and Asian investments should be welcomed.
Dr. Eddy Isaacs is the CEO of Alberta Innovates Energy and Environment Solutions

income portfolios with an overweight energy component, he notes. In addition, Middlefield developed many energy-focused closed-end funds, mutual funds and flow-through limited partnerships over the last decade. In 2009, Middlefield opened a fully staffed Calgary office in the heart of Canadas energy patch, he adds, in order to be close to the energy companies and management teams the company invests in. In the next few years, Mr. Lauzon says, the capital-intensive stage of oil sands projects by major producers will slow, and the companies will start to harvest cash flow. This, in turn, will result in major increases of dividends paid to shareholders. Secondary businesses benefiting from the surge in oil sands production, like pipelines, should be able to provide increasing dividends, he adds. We anticipate seeing specialized energy funds providing high levels of dividend income to unit-holders in the future. reduce the energy required for bitumen extraction. N-Solvs pilot plant is located at a Suncor Energy Inc. site near Fort McMurray, Alberta. Its patented in situ technology uses warm solvent to extract bitumen from oil sands efficiently, sustainably and economically, says John Nenniger, CEO of N-Solv. This is a significant improvement over the traditional steamassisted oil extraction processes, which use water to soften, then recover, the heavy oil, he says. We do not use any water, and our greenhouse gas emissions from extraction are about oneseventh of those using the steam processes, Mr. Nenniger notes. However, the good news doesnt stop there. Our oil quality is significantly higher than the steam processes, and also reduces greenhouse gas emissions in the upgrading part of the lifecycle. Mr. Nenniger says it took 12 years to get sufficient funding for the pilot project. He is quick to credit SDTC which provided $10-million with helping to bring the project to fruition. SDTC made an enormously important contribution in helping move this technology from lab to the field pilot, he adds. SDTC is about leadership and taking responsibility, about maximizing profits while minimizing environmental footprints. Dr. Sharpe says there is room to increase SDTCs role in the oil sands, particularly as more reserves are found and developed. Cleantech can find solutions to collectively bring those resources to the surface, with techniques that lower both water use and emissions per barrel, she says. As public concern grows over pipeline transportation, cleantech is finding ways to improve pipeline monitoring and avoid problems. She says SDTCs portfolio of companies will continue to grow and refine their technologies, and will soon find their way into the next wave of efficient, sustainable oil sands operations.

The oil sands industry plays an active role by contributing directly to SDTC- supported projects as it searches for technologies that reduce water use, increase efficiency and lower costs. photo: kevin moran

from OS 1

SDTC: Grants help companies grow

explains, as it searches for technologies that reduce water use, increase efficiency and lower costs. For example, she says, Titanium Corporation Inc., which processes waste material, treats water before it reaches tailings ponds to recover crude oil, valuable minerals and reusable water. Scott Nelson, president and CEO of Titanium Corporation, says a $5-million grant from SDTC was instrumental in supporting a recent $15-million demonstration pilot program for three oil sands operators. The process was utilized for oil sands extraction, he says, and involved adding solvent to the mixture of bitumen (the heavy, thick and sticky form of crude oil), sand and water to remove final waste materials. Currently, the waste tailings from the extraction process are transferred into ponds, with environmental

consequences. Our technology intercepts the tailings stream before it is discharged into ponds, recovering lost commodities and reducing the environmental impacts, he notes, adding that the technology is now proven and in the process of commercialization and implementation. Dr. Sharpe says that some SDTC-supported companies have developed solutions to maintain pipeline integrity, while others, such as N-Solv Corporation,

Shell ccs

Quest will help reduce oil sands environmental impact

he recently announced Quest carbon capture and storage (CCS) project in northern Alberta will be the first for an oil sands operation in Canada. Quest will be built on behalf of the Athabasca Oil Sands Project joint venture owners, Shell, Chevron and Marathon Oil and with support from the governments of Canada and Alberta. Commenting on the announcement, Royal Dutch Shell plc CEO Peter Voser said CCS is critical to meeting the huge projected increase in global energy demand while reducing carbon dioxide (CO2) emissions. If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number of fronts around the world, but Quest will be our flagship project, said Mr. Voser. Albertas oil sands are considered to be a secure, reliable source of energy and an economic engine that drives employment, training and business development across Canada and beyond. We will need all sources of energy to meet world demand in the coming decades, added Mr. Voser. Lower CO2 energy sources will grow, but even by 2050, at least 65 per cent of our energy will still come from fossil fuels. So CCS will be important to manage climate impacts. The Athabasca Oil Sands Project produces bitumen, which is piped to Shells Scotford Upgrader near Edmonton. From late 2015, Quest will capture and store deep underground more than one million tonnes a year of CO2 produced in bitumen processing. Quest will reduce direct emissions from the Scotford Upgrader by up to 35 per cent

Quest is important because it is a fully integrated project that will demonstrate existing capture, transportation, injection and storage technologies working together for the safe and permanent storage of CO2.
John Abbott is Shell executive vice president of heavy oil

Shell Canada's Scotford Upgrader near Edmonton where bitumen produced by the Athabasca Oil Sands project is processed. photo: supplied

the equivalent of taking 175,000 North American cars off the road annually. Shell executive vice president of heavy oil, John Abbott, says Quest is another example of how the company is using technology and innovation to improve the environmental performance of its oil sands operations. The opportunity Quest provides to reduce emissions from our upgrading activities is an important achievement in itself, but the projects technical and strategic value reaches beyond the emissions it will capture. Quest is important because it is a fully integrated project that will demonstrate existing capture, transportation, injection and storage technologies working together for the safe and permanent storage of CO2. The knowledge it provides will help to enable much wider and more cost-effective application of CCS through the energy industry and other sectors in years to come, says Mr. Abbott. The Alberta government will invest $745 million in Quest from a $2-billion fund to support CCS, while the Government of Canada will invest $120 million through its Clean Energy Fund.

Th He Eg Glo LOb Be Ea An Nd Dm Ma AiIl L t Tu Ue Es SDAY, DAY, O Oc Cto TOb Be Er R2 2,, 2 20 0112 2 t

AN information INFORMATION feature FEATURE OS OS5 5 An

THE future FUTURE of OF the THE oil OIL sands SANDS The

Ontarios energy advantages can play an integral role in a national energy strategy
By Don Don MacKinnon, MacKinnon, By President, Power Power Workers Workers Union Union President,
n todays todays world, world, Canadian Canadian n businesses and and industries industries businesses must survive survive in in a a global global must economy where where the the ability ability to to acaceconomy cess competitively competitively priced, priced, low-carlow-carcess bon energy energy is is critical critical to to economic economic bon growth. Ontarios Ontarios unique unique energy energy growth. advantage comes comes from from a a mix mix of of advantage resources and and technology: technology: hydrohydroresources electric, nuclear nuclear and and biomass. biomass. electric, Today, Ontario Ontario receives receives about about Today, 70 per per cent cent of of its its electricity electricity from from 70 two sources: sources: hydroelectric hydroelectric and and two nuclear. Together Together they they provide provide nuclear. Ontarios businesses businesses and and homehomeOntarios owners with with reliable, reliable, low-cost, low-cost, owners secure, greenhouse greenhouse gas gas (GHG) (GHG) secure, emission-free electricity electricity 24/7. 24/7. For For emission-free many decades, decades, this this has has underundermany pinned economic economic growth growth in in pinned Ontario and and provided provided an an electricelectricOntario ity system system with with one one of of the the worlds worlds ity lowest carbon carbon footprints. footprints. lowest Ontario hosts hosts much much of of Canadas Canadas Ontario $6.7 billion billion a a year year nuclear nuclear indusindus$6.7 try 160 160 supply supply chain chain companies, companies, try 70,000 direct direct and and indirect indirect highhigh70,000 value jobs, jobs, and and research research and and dedevalue velopment at at our our universities universities and and velopment and economic economic benefits benets for for OnOnand tarios agricultural, agricultural, forestry forestry and and tarios transportation sectors. sectors. transportation Powering zero-emission zero-emission Powering vehicles with with these these sources sources of of lowlowvehicles carbon electricity electricity can can reduce reduce GHG GHG carbon emissions from from Ontarios Ontarios largest largest emissions source transportation. transportation. DevelDevelsource opinga aprovincial provincialstrategy strategythat that oping shiftsfrom fromgasoline-dependent gasoline-dependent shifts carsand andtrucks trucksto tolow-carbon low-carbon cars electricvehicles vehicleswould woulddramatidramatielectric callyreduce reduceOntarios Ontarioscarbon carbon cally footprint.Concurrently, Concurrently,such such footprint. astrategy strategycould couldhelp helpour ourhuge huge a automotivesector sectorplay playa acentral central automotive rolein inthe thedevelopment developmentand and role manufactureof ofzero-emission zero-emission manufacture vehiclesfor forthe the21st 21stcentury. century. vehicles Achievingenergy energysuperpower superpower Achieving statusrequires requiresmore morethan thanexportexportstatus ingfossil fossilfuels fuelsand anduranium. uranium.Our Our ing goalshould shouldbe beto tosecure securehigher higher goal valuefrom fromour ourenergy energyadvanadvanvalue tages.With Withdecisive decisiveleadership, leadership, tages. co-operationbetween betweenour ourfederal federal co-operation andprovincial provincialleaders, leaders,and anda aclear clear and integratedstrategy, strategy,provincial provincial integrated energyadvantages advantagescan canbe beleverleverenergy agedto toprovide providestrong strongnational national aged economicgrowth growthand andhigh-value high-value economic jobs. jobs.

EXPERT opinion OPINION expert

In Ontario, Ontario, new new nuclear nuclear In reactors will create tens reactors will create tens of thousands thousands of of person person of years of of new new employment, employment, years billions of of dollars dollars in in billions economic spinoffs, spinoffs, and and economic additional environmental environmental additional benefits. From From an an benefits. environmental perspective, perspective, environmental a renewed renewed and and expanded expanded a nuclear fleet will play a a nuclear fleet will play critical role role in in helping helping critical displace carbon-emitting carbon-emitting displace fossil fuel fuel electricity electricity fossil generation. generation.

colleges that that has has led led to to advances advances colleges in areas areas like like nuclear nuclear medicine. medicine. in On the the environmental environmental side side On of the the ledger, ledger, both both Ontario Ontario and and of Canada have have benefited beneted from from Canada nuclear generation. generation. Since Since 1972, 1972, nuclear Canadas CANDU CANDU reactor reactor fleet eet Canadas has reduced reduced our our national national GHG GHG has emissions emissions by by more more than than 2.4 2.4 billion billion tonnes tonnes that that is is 90 90 million million tonnes tonnes per per year year the the equivalent equivalent of of the the emissions emissions from from 18 18 million million cars. cars. Thats Thats a a substantial substantial contribution contribution to to offsetting offsetting Canadas Canadas GHG GHG emisemissions sions from from other other forms forms of of energy energy production. production. Refurbishing Refurbishing existing existing reactors, reactors, building building new new CANDU CANDU reactors reactors at at the the Darlington Darlington Nuclear Nuclear Station Station and and exporting exporting Canadian Canadian nuclear nuclear expertise expertise have have both both economic economic and and environmental environmental benefits. benets. In In Ontario, Ontario, new new nuclear nuclear reactors reactors will will create create tens tens of of thousands thousands of of person person years years of of new new employment, employment, billions billions of of dollars dollars in in economic economic spinoffs, spinoffs, and and additional additional environmental environmental benefits. benets. From From an an environmenenvironmental tal perspective, perspective, a a renewed renewed and and expanded expanded nuclear nuclear fleet eet will will play play a a critical critical role role in in helping helping displace displace carbon-emitting carbon-emitting fossil fossil fuel fuel elecelectricity tricity generation. generation. The The scheduled scheduled closure closure of of the the aging aging 3,000-megawatt 3,000-megawatt Pickering Pickering Nuclear Nuclear Station Station in in 2020 2020 highlights highlights the the importance importance of of expediting expediting the the new new reactor reactor construction construction at at Darlington. Darlington. Ontarios Ontarios vast vast renewable, renewable, carcarbon-neutral bon-neutral forestry forestry and and agriculagricultural tural biomass biomass resources resources represent represent another another untapped untapped opportunity opportunity to to create create economic economic wealth wealth while while reducing reducing GHG GHG emissions. emissions. OnOntario tario is is becoming becoming more more and and more more dependent dependent on on natural natural gas gas gengeneration eration to to back back up up intermittent intermittent wind wind and and solar solar generation. generation. This This dependency dependency presents presents two two risks risks for for the the province. province. Without Without its its own own natural natural gas gas resources, resources, Ontario Ontario is is increasingly increasingly reliant reliant on on imports imports of of environmentally environmentally questionable questionable U.S. U.S. shale shale gas, gas, and and even even though though prices prices are are currently currently low, low, natural natural gas gas has has historically historically been been subject subject to to price price volatility. volatility. By By converting converting existing existing coal coal stations stations to to utilize utilize a a combination combination of of biomass biomass and and natural natural gas gas for for peak peak demand, demand, OnOntario tario can can reduce reduce exposure exposure to to these these risks risks and and limit limit the the need need for for new new natural natural gas gas plants plants and and associated associated transmission transmission lines. lines. Unlike Unlike intermittent intermittent wind wind and and solar solar generation, generation, biomass biomass is is a a versatile versatile renewable renewable generation generation technology technology that that can can produce produce elecelectricity tricity when when it it is is needed. needed. Investments Investments in in biomass biomass supply supply chain chain infrastructure infrastructure could could help help kick-start kick-start thousands thousands of of new new jobs jobs

ONTARIOS ENERGY ADVANTAGES CAN HELP MAKE CANADA A DIVERSE ENERGY SUPERPOWER
Achieving energy superpower status requires more than exporting fossil fuels and uranium. Securing higher value from our energy advantages is the key to getting there. Ontarios nuclear and biomass energy advantages are a case in point. Both produce safe, reliable, low-carbon electricity. Canadians benet from a solid $6.7 billion a year nuclear industry, 70,000 jobs and R&D related to medicine and fuel recycling. Using renewable, carbon-neutral biomass with natural gas at our existing coal stations means: electricity production when it is needed; lower GHG emissions; better energy security; and more jobs in agriculture, forestry and transportation. Whats needed? Decisive leadership, a comprehensive strategy and clear investment plans. For more information please go to www.abetterenergyplan.ca

FROM THE PEOPLE WHO HELP KEEP THE LIGHTS ON

OS 6 An AN information INFORMATION feature FEATURE

t Th He E g Gl Lo Ob Be E a An Nd D m Ma A iI l L t Tu Ue Es S DAY, O c Ct To Ob Be Er R 2, 201 2

The THE future FUTURE of OF the THE oil OIL sands SANDS
expert EXPERT opinion OPINION

Challenges and opportunities abound

Q&A with Chris Seasons President, Devon Canada Corporation
What do you see as the single most significant signicant challenge facing oil sands companies today? There are a lot of challenges, but if I had to pick one, its people. There arent enough qualified qualied people in Alberta, or Canada for that matter, to meet growth plans not only at Devon, but for the oil sands industry as a whole over the next 20 to 30 years. Frankly, thats a challenge for the western world in general. There arent enough technical graduates coming out of universities. The folks who have been in the business for a long time, such as me, are getting older. That baby boomer growth wedge is reaching retirement, and theres an inadequate supply to backfill backll the gap. How do you see that hurdle being addressed? Theres no easy answer, and theres no short-term answer. Theres a multifaceted opportunity to address it. Immigration is one factor (Immigration) Minister (Jason) Kenney is helping to address that aspect by targeting foreign workers particularly professionals and making it easier for qualified qualied candidates to enter the country. But perhaps even more important are the skilled trades that are required. Education is another aspect; expanding the number of places in Canadian education programs and providing the funding that goes with it. We must also improve the knowledge and understanding of the career opportunities for people in the skilled trades. There are some excellent careers in the skilled trades that are both financially nancially rewarding and challenging. What is Devon doing to attract and keep the staff it needs to operate successfully? For Devon, its about the culture come more prevalent and more economic. Canadas oil sands represent approximately half of the investable oil around the world. By that, I mean oil that is not in the hands of national oil companies or governments that dont allow access to non-government organizations. Thats important because it provides a lot more flexibility exibility for market forces to determine what will get developed. Oil sands operators are under constant pressure from stakeholders to reduce their impact on the environment and ensure that they have a social licence to operate. How do you think the industry and Devon are doing? We always need to be upping our game, and continuous improvement is what we strive for, not only on the environmental side of things, but in our business in general. We need to listen to what the public has to say and what their expectations are in order to earn a social licence to operate. I think the industry as a whole and Devon certainly recognizes that as an important piece of our business. We all have kids or grandkids, and we want them to be proud of what we do as well. There is a balance between the environmental impact of development and the economic impact that benefits benets us all by supplying the energy thats required to meet the growing need in Canada and around the world. No energy comes without some costs, but the idea is to get the right balance that everybody can find nd acceptable. How do you feel the industry is doing on the environmental front? You really need to ask the communities in which we operate, and our neighbours, but I think were doing a good job and are always seeking to improve. Theres an unprecedented level of collaboration between Canadian oil sands companies to share knowledge and technology to mitigate environmental impacts because we all recognize the need to accelerate our pace of improvement in this area. Some oil companies, including Devon, are forecasting signifisignicant growth in the years ahead. What are the challenges that go with it? For us as operators, its recruiting and retaining qualified qualied staff to operate our projects. We are in a very competitive environment, and we operate in remote locations. Having qualified qualied people to staff them is a concern for us. Secondly, the cumulative impact of all these projects needs to be considered. The Alberta governments Lower Athabasca Regional Plan tries to look at the cumulative effects of projects in the entire region. Its an important piece of work aimed at helping the industry manage its projects holistically and the government acting as stewards of the land.

Chris Seasons, president, Devon Canada, at the companys in situ/SAGD oil sands operation in northern Alberta.
photo: PHOTO: supplied SUPPLIED

of the organization. Compensation is good in this industry and pretty comparable across all the organizations. So what we aim for among our employees is pride of ownership in where they work. Because they know Devon is totally committed to ethical operations, they can hold their heads high knowing that, together, we are meeting or exceeding all the standards and always looking to improve. Devon employees get the opportunity and responsibility to contribute to meaningful projects that help build their experience and careers. One of our core values is Be a good neighbour, and another is Do the right thing. I think those two values simplify our approach. Our staff can look

We always need to be upping our game, and continuous improvement is what we strive for, not only on the environmental side of things, but in our business in general. We need to listen to what the public has to say and what their expectations are in order to earn a social licence to operate.

their neighbours or their kids in the eye and say, yeah, we do it well and we have a lot to be proud of. What do you see as the role of the oil sands in addressing global demand for energy over the next 50 years? The oil sands have a key role to play in providing energy for the world. If we look forward 50 years, the consensus seems to be that energy growth is expected to increase substantially. Most of that growth will be driven from non-OECD countries as they improve their standards of living and that requires all forms of energy. In that time frame, oil will continue to play an important role, even as renewables be-

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by BY the THE numbers NUMBERS

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Barrels of oil that can be recovered economically from the oil sands with todays technology

Canadas ranking among countries with the largest oil reserves

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Canadas share of world oil reserves accessible for privatesector investment

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Expected increase in global demand for energy by 2035

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Expected contribution to the Canadian economy of new oil sands development over the next 25 years in 2010 dollars

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Barrels a day of oil sands production in 2011

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Barrels a day of oil sands production expected by 2030

Source: Source: CAPP: CAPP: The The Facts Facts on on Oil Oil Sands Sands

Progress is in our genes

Meeting the worlds growing energy needs requires a lot of big ideas. Like building a cutting-edge Steam Assisted Gravity Drainage (SAGD) plant for the vast oil sands reserves in Alberta. Its already making a difference in how bitumen is produced, so you would think that were completely content. And we are proud of our achievements, but this is just the beginning. Our ambition is to always improve what we do, and thats why we are constantly looking for new and better ways to increase recovery and reduce our impact on the environment. We call it never being satisfied.

Learn more at neversatisfied.statoil.com

Always evolving Never satisfied

OS 8 An information feature

t h e g l o b e a n d m a i l t u e s DAY, O c t o b e r 2 , 2 0 1 2

The future of the oil sands

boomtown

Fort Mac sets its sights on sustainable growth

ig dreams have a way of coming true in Fort McMurray. From its fur trade in the early 1800s to its salt plant and sawmills in the mid-1900s, this northern community in Albertas Wood Buffalo regional municipality has nurtured intrepid pioneers and enterprising thinkers. And when the Great Canadian Oil Sands project began to mine the regions wealth of bitumen in 1964, Fort McMurray or Fort Mac, as it is fondly known became more than a place of dreams; it became a boomtown. Today, with oil production in the Athabasca oil sands expected to more than quadruple over the next two decades, Fort McMurray is riding another wave of tremendous growth and transforming from a boomtown into a model, 21st century community. The resource were developing right now is world class, says Jeff Penney, manager, economic development for Wood Buffalo, one of the North Americas largest municipalities, made up of Fort McMurray and nine rural communities. Were building a community thats also world class, where people want to come not just for work and career, but also to raise a family, says Mr. Penney. Over the last three decades, Fort McMurrays population has grown from about 28,000 to close to 80,000 a diverse group that represents about 130 different cultures. This number is expected to soar to almost 200,000 by 2030. Fort Mac will soon be the third largest community in Alberta, served by an expanded highway that is 10 lanes at its widest point. Whats driving this growth? One word: jobs. Increased oil production, combined with efforts to diversify the regions economy, could boost Wood Buffalos employment figures to almost 90,000 jobs by 2015 and more than 162,000 by 2030. They wont all be based in the oil fields; non-oil sands employment is expected to account for 40 per cent of total jobs by 2015, increasing to 50 per cent by 2030. Every time the oil sands industry grows, we put pressures on the region, says Ken Chapman, executive director of the Oil Sands Developers Group, a non-profit organization that represents oil sands developers and operators. Fort Mac has responded to these pressures by implementing a significant and very intelligent municipal development plan and a city centre redevelopment plan, adds Mr. Chapman. The plans set out a blueprint for an infrastructure that will make it easier for existing companies to operate, encourage a more diversified business base and improve quality of life. The municipality will work with the Canadian National Railway and other partners to potentially expand rail services for moving people, goods and machinery. It is building roads and a new airport terminal, scheduled to open in two years. Perhaps most exciting is the redevelopment of Fort McMurrays city centre, which will focus on building a high-density downtown space that features office buildings, multi-family dwellings, hotels, stores, restaurants and a cultural centre. MacDonald Island Park a vast

Surrounded by boreal forest and nestled at the confluence of the Athabasca and Clearwater rivers, Fort McMurray is the largest community in the Regional Municipality of Wood Buffalo in northern Alberta. photo: chris salvo

The resource were developing right now is world class. Were building a community thats also world class, where people want to come not just for work and career, but also to raise a family.
Jeff Penney is manager, economic development for Wood Buffalo, one of the North Americas largest municipalities

community recreational centre, complete with golf course, Olympic-sized pool and hockey arena will be integrated into a recreation zone that includes the Riverfront Park. Connecting structures, such as a pedestrian bridge, will make the zone more accessible from downtown.

Sustainability is a key guiding principle in Fort McMurrays development plan, says Mr. Penney. The city is looking into low-temperature gasification, for example, to generate heat from landfill waste. Starting this fall, the city will power its transit system with biodiesel from waste cooking oil

from hotels and restaurants. We want to be the jurisdiction people look to for best practices when it comes to developing a large, vibrant urban centre, says Mr. Penney. Suffice it to say that the city centre redevelopment of Fort McMurray will be the most exciting project in Canada.

community

Oil sands opportunities attract many to Fort Mac

n the fall of 2005, Eric Girard and his wife Sophie left Quebec City to start new lives in Yellowknife. They had been advised the capital of the Northwest Territories was rich in jobs, but when they reached northern Alberta, they got word that Yellowknifes economy was slowing; they were advised to try again in the spring. With a trailer containing all their possessions hitched behind their car, they headed north to Fort McMurray, the booming oil sands city they had heard about but never seen. Theyve been there ever since. We had a wonderful introduction to Fort Mac, says Mr. Girard. The leaves of the trees in the river valley were fall yellow; the weather was perfect. It seemed that we were meant to be there. An agrologist specializing in vegetation, Mr. Girard soon found work with Syncrude, helping the oil sands operator return land to its natural state after the extraction of bitumen. Lynne Barlow and her husband Glen arrived in Fort McMurray from Vermilion, a farming town east of Edmonton, in the spring of 2007. She was finalizing a degree in environmental management and had been offered a position with Syncrude to complete her practicum. With their two children off at university, the Barlows decided to relocate to Fort McMurray, but were nervous. They were a farm couple and had never lived in a town, let alone a rapidly growing boomtown. It was a bit of a challenge at first, admits Ms. Barlow. We were used to acreage, so a small lot felt a bit strange. But they soon learned that in spite of its size and rapid growth, Fort McMurray retained the essential elements of a small town: friendly, welcoming neighbours, a good quality of life and a strong community spirit. Mr. Girard and Ms. Barlow (who was offered a full-time position with Syncrude after graduation) acknowledge that they faced challenges when first arriving in Fort McMurray, including the towns notoriously expensive accommodation. But Mr. Girard points out that salaries and wages are generally higher as well, which helps compensate for higher housing costs. Their spouses have found employment of their own in Fort McMurray and have settled in equally well. Ms. Barlow says that for her, one of the biggest attractions of Fort McMurray was the opportunity to work for Syncrude in her field of expertise. Syncrude has the resources and commitment to restore the land it works to its natural state, and thats what I want to be part of, she says. I work with the best of the best in a position that provides challenges every day. For Mr. Girard, helping Syncrude reclaim land an additional 300 hectares scheduled for 2012 dovetails with his own passion for the outdoors. He and Sophie started a club three years ago to help promote outdoor activities in the region like canoeing, winter camping and hiking. As lifelong outdoor enthusiasts, the couple helps other Fort McMurray residents appreciate and enjoy all of the natural attractions in a region that offers plentiful professional opportunities and much more.

Zero Waste

Alberta project aims for zero waste

n innovative waste-toresource project will put Wood Buffalo, Alberta, squarely on a world stage, by eliminating the need for landfills. The initiative aims to create a more efficient and effective way to convert waste into resources, both energy and products. Its a sustainable practice with environmental, social and economic benefits. Unlike traditional recycling, a waste-to-resource approach allows all materials to be placed in the regular garbage. The process is simple and easy for residents, and we believe it will be cost-neutral or better, says Kevin Scoble, director of environmental services for the Regional Municipality of Wood Buffalo, in northeastern Alberta. With traditional recycling, in order to recycle a tin can you have to wash it thoroughly and put it in a separate collection container, he explains. With the waste-to-resource approach, you throw the can in the garbage as is. The residual food is converted into energy through gasification, and the can is recovered for recycling. The project will also involve research and development, creating a self-contained eco-park that will encourage the development of new diversified businesses, with the collaboration of members of the public, the Oil Sands Developers Group, Keyano College and local business associations. We will be investigating potential opportunities in the oil sands industry for the application of the technology and integration with the production sites and work camps, Mr. Scoble says. By developing a centre of innovation and excellence for the college, we will enhance our projects and share our knowledge outside the region.

The close-knit community, abundant opportunities for year-round outdoor activities and a booming economy make Fort McMurray an attractive destination for families. photo: chris salvo

Progress is in our genes

Discover more at neversatisfied.statoil.com

Always improving Never satisfied

Always evolving Never satisfied