PRZOOM - /newswire/ -
Palo Alto, CA, United States, 2007/05/18 - As prices and global demand for crude oil continue to increase, the North American oil sands market is poised for remarkable growth. Recent technological developments have considerably reduced the extraction and upgrading costs of bitumen.
This, along with high crude oil prices, has made oil sands an attractive proposition for oil companies.
New analysis from Frost & Sullivan (energy.frost.com), North American Oil Sands Markets Assessment finds that the market increased to 966,000 barrels per day (bbl/d) in 2005. With anticipated growth, this level of production is estimated to reach three million bbl/d by 2020, and possibly five million bbl/d by 2030.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American Oil Sands Markets Assessment, send an email to Johanna Haynes, Corporate Communications, at johanna.haynes[.]frost.com with the following information: your full name, company name, title, telephone number, email address, city, state, and country. We will send you the information via email upon receipt of the above information.
“With the conventional deposits of crude oil depleting at a rapid pace, the need for discovering and exploring alternative reserves has become imperative,” notes Frost & Sullivan Research Analyst Shreyas Rajan. “Oil sands provide a highly viable solution to this looming energy crisis.”
Oil sands are predominantly found in Canada and in small quantities throughout few regions of the United States. The Alberta province of Canada has more than 95 percent of the world's oil sands reserves. The total amount of bitumen is more than 1.6 trillion barrels, with over 178 billion barrels being accessible by using existing technology.
North American and Canadian oil sands reserves are providing opportunities for the oil companies and governments to find innovative and economic ways to extract and process oil sands.
The majority of Canadian oil sands production needs to be exported to the United States for refining, creating two major issues for producers. One issue is identifying markets that have the process capacity to handle the very high volume of production. The other issue is that many of the accessible markets like petroleum administration for defense districts (PADD) II, III and IV may not be able to process anything but fully upgraded synthetic crude oil (SCO). This would significantly reduce netbacks for oil sands producers.
“In order to overcome these issues, oil sands producers are either purchasing refineries or are tailoring output to suit refineries, while some are entering into long-term agreements with refineries,” observes Rajan. “Producers can also benefit by upgrading bitumen into high-quality SCO and introducing new blends such as diluted bitumen (Dilbit) and synthetic bitumen (Synbit) to meet refinery standards.”
Imminent growth of the North American oil sands market is dependant on the number of participants and their active involvement toward the development of this promising energy reserve.
The North American Oil Sands Markets Assessment is part of the Energy and Power subscription, which includes research services on the Canadian market and the potential in that region. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
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