Devon Energy Corporation has received regulatory approval for the Company's second oil sands project in Canada. Construction of the 100% Devon-owned Jackfish 2 project will begin immediately.
Once fully operational in 2012, Jackfish 2 will produce about 35,000 barrels of oil per day through a recovery method known as Steam Assisted Gravity Drainage, otherwise known as SAGD. Over the life of the project,
Devon president John Richels called Devon's oil sands operations a key asset in the Company's North American portfolio. "We are very pleased to have approvals in hand so we can move forward with our second SAGD project," Richels said. "The Canadian oil sands are an important resource we need to tap into to meet the future energy needs of North America. Through the use of SAGD technology, we believe we can access
Devon is currently ramping up production at its original Jackfish project. Jackfish, which commenced operations in 2007, is expected to reach its full production capacity of 35,000 barrels of oil per day in the first
Devon is the only U.S. independent with active operations in the oil sands, and it is among the first in the industry to use SAGD technology. The innovative method allows production from reservoirs that are too deep
The in-situ or "in place" recovery method is used to produce bitumen through wells similar to conventional oil wells. Steam injected into the reservoir heats the thick oil allowing it to flow to the surface.
In-situ production methods such as SAGD will play a major role in the oil sands' long-term future. While this vast oil resource is second only to Saudi Arabia in size, about 20% of the resource is accessible
In addition to its operational advantages, SAGD requires less surface disturbance per unit of production when compared with other conventional methods of oil production. This minimizes environmental disturbance caused by the project.
Devon has been a proactive environmental steward through its development of Jackfish. In May 2008, Devon was honored with the Canadian Association of Petroleum Producers President's Award for Stewardship
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