The world needs more energy and Chevron is working to find new ways to maximize existing resources around the world by unlocking unconventional resources such as shale gas, coalbed methane, crude oil, and natural gas from “tight” rock formations, oil sands, kerogen from oil shale and gas hydrates that cannot commercially flow without well stimulation.
In Canada, Chevron is exploring for natural gas from shale with projects in the liquids-rich Kaybob Duvernay shale gas play in west-central Alberta and in the Horn River/Liard Basins in northeast British Columbia.
Chevron Canada has an industry-leading position in the emerging Duvernay shale gas play near Fox Creek, Alberta, approximately 260 km northwest of Edmonton. Chevron has a net 70 percent operated interest in approximately 330,000 acres in the liquids-rich Duvernay formation and is the operator under a Joint Operating Agreement for that area with KUFPEC Canada Inc., which holds a net 30 percent interest. KUFPEC Canada Inc. is a wholly owned subsidiary of Kuwait Foreign Petroleum Exploration Company.
Chevron commenced an exploration program in the Duvernay in 2011, subsequently drilling 16 horizontal wells and completing 13 wells using multi-stage hydraulic fracturing. In the second half of 2014, Chevron commenced a pad drilling program to evaluate well production rates and reservoir performance. Drilling continued during 2016 on an appraisal and land retention program. A total of 53 wells had been tied into production facilities by early 2017.
In November 2017, Chevron announced it was moving into development on a portion of its leaseholdings in the East Kaybob area. It is anticipated this initial development program will comprise approximately 55,000 acres of Chevron’s operated position in the Duvernay play. The program will utilize long-term infrastructure development and service agreements with Pembina Pipeline Corporation and Keyera Corporation, with service expected to be available during the second half of 2019.
Chevron’s operations in the Fox Creek area include ongoing community consultations, engagement with First Nations and participation in the Fox Creek Operators Group.