In truth, it also marked the end of an era: For those workers who stay, there are fewer jobs. Hate Mail click here to read unedited hate mail. US Oil Sands did produce first oil at the project, in August , but appointed a receiver one month later.
The intensity of greenhouse gas emissions varies widely in the oilsands because of the age, geology and technology of different projects. A lack of new oil export pipelines has certainly had an impact on finances in the oilsands.
Full pipelines cause the prices of heavy oil out of Alberta to drop. Companies without any pipeline space have to ship their oil to refineries by train, which is more expensive. With proposed projects such as Keystone XL and the Trans Mountain expansion facing delays, there is added uncertainty for companies wanting to invest in new oilsands projects.
The number one issue facing the oilsands is a lack of pipeline capacity, said Rob Bedin, an analyst with the RS Energy Group. The fall in oilsands growth has led to an exodus of tradespeople from Fort McMurray. For those workers who stay, there are fewer jobs. Half of the members of one local trades union are without work. It's probably not a growth engine for the Canadian economy anymore. Mullen sees natural gas as the future of the oilpatch, because of massive deposits in northeast British Columbia and northwest Alberta.
As countries around the world try to reduce their use of coal power, the cleaner alternative could be natural gas. The amount of bitumen pulled out of the ground around Fort McMurray will continue to increase even though the amount of spending on new projects has fallen.
Many existing oilsands facilities are still increasing production, and new technology is improving operations. Growth will also come from expansion of existing projects. The oilsands produced 2. Entirely new facilities will account for only nine per cent of that growth. Dozens of new projects are still proposed for the oilsands, but many remain delayed or shelved as companies re-evaluate whether they want to invest in Fort McMurray.
The economy is doing better, people generally feel better, but there's something just not quite right. There are a few wildcards that could alter the course of the oilsands.
The project could be the largest facility ever built in the oilsands, and the furthest north from Fort McMurray. Much of that forest is gone. When the company offered buyouts as part of its downsizing efforts, Eugene took the package, along with the insurance payout for his burned-down home. Abdi Adam still has his job as a contract carpenter at one of the older mines, but his pay rate is down.
Unemployment in the region sat at 9. Many unemployed tradespeople Adam knows are seeking gigs doing home reconstruction. The hundreds of new homes expected to emerge from the ash-coated earth this year—and the next year, and the next—are equal to the rate of boom-time construction activity in Fort McMurray.
The Conference Board of Canada estimates the home replacement adds 0. Understanding a city of dreams. Out-of-town builders have rushed north to meet demand. Apartment vacancies were at Industry professionals predicted the burn zones would feature more vacant lots for sale than the 88 listed as of February. Once the reconstruction ends later this decade and the workers leave, there could be a bigger glut of unoccupied homes. At the north edge of town, the oil collapse put a hard brake on new homes in Parsons Creek, a suburban development for 24, new residents that was about one-tenth built when petroleum prices took a dive.
A new public school commissioned to handle more rapid growth will open in September. The board will reopen its Beacon Hill school, which was untouched by flames but damaged by smoke. This is a key step in restoring the community, trustees told the parents and staff gathered for the board decision. Not returning was never a question for Selena Klapp, who grew up attending Beacon Hill. Her three kids have gone there and she now works at the school as a librarian.
Losing her home made her hardest year. It will always evolve. It will always be changing. People worked at Syncrude or Suncor, scooping up bitumen and processing it into synthetic crude. Another , barrels will come on stream by the end of next year, as construction of Suncor-led Fort Hills winds down and operations begin this fall. As Peter Tertzakian, an influential energy economist, put it to a Vancouver audience in March: Major international players have been voting with their feet.
Fewer big players could mean fewer dollars at play to expand oil sands. And that means fewer jobs. The company had filed the Seal regulatory application in early This is a significant jump from previous production rates. Koch views the costs to maintain the approvals in good standing to be excessive when measured against the risk to the project.
This includes drilling seven new well pairs and two infill wells, as well as expanding the associated infrastructure. By the end of the year, Pengrowth expects the design work to be approximately 70 per cent complete and to be ready to execute on Phase Two as funds become available. Sign up for our newsletter. Cenovus Energy Oilsands producers have been making moves with their projects as the lower-for-longer oil price environment stabilizes into the new normal. Canadian Natural Kirby North Canadian Natural Resources in November became the first company to restart development of an oilsands growth project that was put on hold during the current downturn.
Kirby North will be targeted to deliver first steam-in in , with first oil targeted in