Athabasca Oil Sands Project (AOSP)
The company holds a 20 percent nonoperated working interest in the AOSP near Fort McMurray, Alberta. Oil sands are mined from both the Muskeg River and the Jackpine mines. Bitumen is extracted from the oil sands and transported by pipeline to the Scotford Upgrader near Edmonton, Alberta, where it is upgraded into synthetic oil using hydroprocessing technology.
In 2012, ramp-up associated with the AOSP Expansion 1 Project continued, increasing average total daily production to 225,000 barrels (43,000 net) of synthetic oil. As a result of the project, daily production design capacity was increased to approximately 255,000 barrels. In addition, a final investment decision was reached in mid-2012 on the Quest Project, a carbon capture and sequestration project that is designed to capture and store more than 1 million tons annually of carbon dioxide produced by bitumen processing at the AOSP by 2015.
In February 2013, Chevron acquired a 50 percent-owned and operated interest in the Kitimat LNG project and proposed Pacific Trail Pipeline, and a 50 percent nonoperated working interest in 644,000 total acres (2,606 sq km) in the Horn River and Liard shale gas basins in British Columbia. The Kitimat project is planned to include a two-train, 10.0 million-metric-ton-per-year LNG facility, and at the time of acquisition, FEED activities were in progress.
The company holds shale exploration leases totaling approximately 325,000 net acres in the Duvernay Shale formation and approximately 200,000 overlying acres in the Montney tight rock formation in Alberta. In 2012, drilling for these unconventional resources continued, with a multiwell Duvernay program on these 100 percent-owned and operated leases. Initial production to permanent facilities was achieved in late 2012.
Chevron Canada Resources believes in responsible development and in protecting the environment and the communities where it operates. In Alberta, Chevron is conducting its Kaybob Duvernay program, which includes utilization of horizontal drilling and multi-stage hydraulic fracturing technologies, in accordance with all regulations prescribed by the Alberta Energy Regulator (AER). Furthermore, Chevron is a member of the Canadian Association of Petroleum Producers (CAPP) and abides by its Guiding Principles for Hydraulic Fracturing.
Chevron supports the disclosure of chemicals used in hydraulic fracturing. Water and sand constitute more than 99 percent of the fracturing fluid.
In 2012 the AER initiated reporting of fracturing fluid using FracFocus.ca. FracFocus has been adopted as the standard reporting mechanism for North America. Chevron Canada’s fracturing fluids will be reported using this process.
- Hydraulic fracturing of thousands of wells over the past 60 years in many countries has shown that such operations can be done safely and with no harm to the environment, including aquifers and groundwater supplies.
- The Alberta Energy Regulator requires that any hydraulic fracture fluids used above the base of groundwater protection be non-toxic and that the company reveal the contents of the fluids upon request.
- The AER requires that the type and volume of all additives used in fracture fluids be recorded in the daily record of operations for any well. This information must be submitted to the regulator.
- The AER’s regulatory requirements are designed to prevent any hydraulic fracturing fluid from mixing or entering groundwater or surface water regardless of whether or not it contains toxic chemicals.
- These requirements include ensuring the use of steel casing and full cementing of the wellbore so that any fluid inside the casing cannot mix with water in the formations the well passes through. Any produced fluids that are returned to the surface, such as hydraulic fracture fluid and salt water from the producing geologic formation, must be handled, stored, and disposed of under the strict regulations of the AER. No fluids, including those that have been treated, are ever allowed to be released into a natural water body.
Hydraulic Fracturing Safeguards:
For more information on unconventional resource development in Canada, please visit:
- Alberta Energy Regulator
- Canadian Association of Petroleum Producers
- Frac Focus – Chemical Disclosure Registry
- Canadian Society for Unconventional Resources
Contact us for further information.