Canada Oil Sands Producers to Share Environmental Technology

115687

CALGARY -- A dozen of the largest Canadian oil sands producers agreed Thursday to share funding for environmental research, saying pooling their resources will speed the creation of new technologies to reduce the negative effects of oil-sands development.

The 12 companies involved in the new organization, called Canada's Oil Sands Innovation Alliance, have agreed to jointly fund environmental research and then share the intellectual property rights for environmental technologies.

"We will remain competitors and will continue to compete aggressively in the market with our products, but when it comes to the environment, we know we'll all win when we start working more closely together," Suncor Energy Inc.'s (SU) chief operating officer and incoming chief executive, Steve Williams, said before signing the charter of the new group at a press conference in Calgary.

Oil sands development is being targeted by environmental groups and politicians for the higher greenhouse gas emissions it creates, as well as the land destruction and waste ponds created by strip mining in northern Alberta. Resistance to the Keystone XL oil pipeline from Canada to Texas - rejected by the U.S. government earlier this year - focused in part on what the environmental groups called "dirty" oil from Canada's oil sands.

The oil sands in northeastern Alberta is the world's third-largest oil reserve and is expected to roughly double in production to 3 million barrels a day by the end of this decade.

The companies that signed onto the agreement include BP Plc (BP), Canadian Natural Resources Ltd. (CNQ), Cenovus Energy Inc. (CVE), ConocoPhillips (COP), Devon Energy Corp. (DVN), Imperial Oil Ltd. (IMO), Nexen Inc. (NXY), Royal Dutch Shell (RDSA), Statoil (STO), Suncor Energy, Teck Resources Ltd. (TCK) and Total SA (TOT).

The group is already working on two technologies to improve environmental performance, executives of the companies said. One technology will speed up the land reclamation process after oil sands strip mining, the other is a new fuel technology to reduce the carbon-dioxide emissions from oil sands produced from underground steam-injection.

"A technology that has the potential to substantially reduce reclamation times would traditionally be held very close by an individual company, while other companies would work to develop something very similar," Devon Canada President Chris Seasons said at the signing. "This slows down progress, is redundant, and ties up valuable people and resources," he said.

The seeds of the new group were started in 2010, when seven of the companies agreed to share technology specifically related to the clean-up of tailings ponds - large pools of waste water created from oil sands mining. That group will be merged into the new group, the companies said.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Ossama | Mar. 2, 2012
The alliiance and the idea looks great from an environmental prespective, yet from a business prespective and the competition between those companies, it does not seem that it is doable. Treatment of Oil Sands to extract the crude might put a restriction on shared IP!


Related Companies
 Company: BP plcmore info


 - BP Says It Is Considering IPO of US Pipeline Assets (Jul 18)
 - Total, BP Unit, YPF Boost Investment in Argentina's Vaca Muerta (Jul 18)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 Company: Canadian Natural Resources Ltd.more info
 - Canadian Natural Resources Says 2017 Production To Rise 6% (Dec 15)
 - Canadian Natural Resources Posts Bigger-Than-Expected Loss (Nov 3)
 - Canadian Natural Resources Reports Smaller Quarterly Loss (Aug 4)
 Company: Nexen, Inc.more info


 - Alberta Regulators Charge Nexen Energy Over 2015 Pipeline Spill (Jul 6)
 - Cenovus Drops Most Ever as $13.3 Billion Deal Ramps Up Risks (Mar 30)
 - UKCS Oil, Gas Extraction Drops 10% (Dec 8)
 Company: Shellmore info


 - BP Says It Is Considering IPO of US Pipeline Assets (Jul 18)
 - Top Oil Market Summons Poseidon to US-Mideast Crude Fight (Jul 18)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 Company: Statoilmore info


 - Europe's Oil Giants Recover From Three-Year Slump (Jul 27)
 - Statoil Scales Down Exploration Plans For 2017 (Jul 27)
 - Greenpeace Activists Protest Near Oil Rig In Norway's Arctic Sea Area (Jul 21)
 Company: Total S.A.more info
 - Europe's Oil Giants Recover From Three-Year Slump (Jul 27)
 - Suncor, Total Argue Over Cost Of Fort Hills Project (Jul 27)
 - Total Beats 2Q Expectations Helped By Strong Cash Flow, Costs Cuts (Jul 27)
 Company: ConocoPhillipsmore info


 - ConocoPhillips Trims CAPEX After Posting Quarterly Loss (Jul 27)
 - ConocoPhillips to Sell Barnett Assets for $305 Million (Jun 29)
 - ConocoPhillips To Lay Off 300 In Canada After Cenovus Deal (May 4)
 Company: Devon Energymore info
 - Devon Energy Plans To Divest $1B Assets; Profit Beats (May 2)
 - Devon Energy Beats Profit Estimates As Cost Cuts Pay Off (Feb 14)
 - E&P Companies Target Potential of STACK, SCOOP Plays (Aug 25)
 Company: Imperial Oilmore info
 - Imperial Oil Profit Boosted By Asset-Sale Gain (Jan 31)
 - Bulk of Canada's Oil Sands Plants Seen Up in Days to Weeks (May 11)
 - Canada's Ever-Shrinking Oil Industry Braces for More Job Cuts (Apr 4)
 Company: Suncor Energymore info
 - Suncor, Total Argue Over Cost Of Fort Hills Project (Jul 27)
 - Synthetic Crude Rises On Extended Syncrude Oil Sands Cuts (Jun 14)
 - Canada's Suncor Prepares Oil Sands Growth as Global Majors Exit (May 11)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Environmental Field Technician
Expertise: Environmental, Safety & Training
Location: Midland, TX
 
Senior Level Process Water Treatment Engineer
Expertise: Environmental Engineer
Location: Rancho Cordova, CA
 
Geographic Information Systems (GIS) Analyst
Expertise: Environmental Engineer
Location: Nashville, TN
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours