Oklahoma City-based Devon Energy Corp. has started clearing the site for its Jackfish 2 in-situ oilsands project in northern Alberta. The company’s original Jackfish project lies about 10 kilometers east of the new venture. The companion sites, owned 100% by Devon, are near Conklin, south of Fort McMurray. Devon employs steam-assisted gravity drainage (SAGD) technology at Jackfish, and will use the same method at Jackfish 2. The projects will each be capable of producing at peak rates of 35,000 barrels of bitumen a day, and will each recover about 300 million barrels. The company is developing its site with seven well pairs on a pad; wells are drilled vertically to depths of around 450 meters, then horizontally 800 to 900 meters. Each well pair is expected to make 1,000 barrels of bitumen a day. Jackfish has a couple of unique features. It is the first oilsands project to use saline water for its steam generation. The company processes some 100,000 barrels of water per day, and recycles 95% of that. Additionally, Devon designed the project with the capability to blend diluent or synthetic crude with its bitumen; at present it uses diluent. The mixture is sent to market via the Access pipeline, owned 50% by Devon. Steam injection started at Jackfish in August 2007, and current production averages 14,000 barrels of bitumen a day. Construction cost was C$730 million. Costs for Jackfish 2 are estimated at C$1 billion, due to inflation in labor and materials. Currently, Canadian oilsands projects make 1 million barrels of bitumen per day. There are 87 active projects; three are operating mines, two are proposed mines and the rest are in-situ. Total oilsands production is forecast to rise to 4 million a day by 2020. I recently had the opportunity to visit Alberta’s oilsands region to tour Jackfish and see SAGD production first-hand. Certainly, SAGD and other in-situ methods are enormous technical breakthroughs that can allow the extraction of great quantities of bitumen with minimal surface disturbances. Well-based recovery schemes have much lighter environmental impacts than mining-based projects, for sure. --by Peggy Williams, Senior Exploration Editor, Oil and Gas Investor firstname.lastname@example.org
Opinion: Fort Worth Barnett, 2023
2023-01-31 - BKV Corp. made the most of its time in the Barnett Shale before filing for IPO in November 2022.
Diversified Says 2022 Results in Line with Market Expectations
2023-01-31 - Diversified’s trading statement detailed operating and financial highlights as well as ESG targets, including the plugging of more than 200 wells.
Diamondback Doubles Asset Sales Target to $1B, Reveals More Midland M&A
2023-02-24 - The Permian pure play is selling off midstream assets and upstream leasehold that can’t compete for capital in the company’s portfolio, Diamondback Chairman and CEO Travis Stice told investors.
Exxon Mobil Reports Solid Results, Eyes Permian and Guyana Growth
2023-02-01 - U.S. oil giant Exxon Mobil Corp. reported earnings of $55.7 billion in 2022 and looks to continue growing production in the Permian and Guyana over the near-term.
Chevron Reiterates Permian’s 2025 Growth Target Despite Delaware ‘Falling Short’
2023-03-01 - Chevron chairman and CEO Mike Wirth said that the company hopes to reach 1 MMboe/d of production in the Permian Basin by 2025 before plateauing at approximately 1.2 MMboe/d.