A new oil boom in the Alberta oil sands
With oil prices at record lows, a new boom is underway in the world’s biggest oil sands region.
The oil sands, which lie at the heart of Canada’s oil sands production, are the heartland of the world economy and have been growing for decades.
With oil and gas reserves of over 6.5 billion barrels, and a potential annual output of nearly 1.2 billion barrels by 2020, the oil sands have attracted the attention of many global investors.
But they have faced challenges, notably the global oversupply of oil and a lack of transparency in the process of resource development.
This week, an international consortium led by BP, Royal Dutch Shell, Chevron and ExxonMobil announced plans to build the first oil sands pipeline in North America, a project that will provide a direct pipeline to export oil to Asia.
Oil sands development has also been at the centre of the US president Donald Trump’s energy agenda, with his administration now seeking to reverse climate change efforts.
A new boom in oil sands development is underway In the US, the boom has come with many challenges, particularly the global oil price slump.
The price of oil has plunged from $105 per barrel in mid-2017 to less than $30 today, which has left the US and Canada in the midst of an economic recession.
With low prices, oil producers in the US have been facing a glut of crude and with it, lower production.
The US Department of Energy (DOE) has estimated that in 2020, there will be just a 1% chance that the US will export more than it consumes.
As a result, US producers are now seeking the pipeline that would deliver oil from Canada and Mexico through the United States.
This would be a significant change for the oil industry in the United Kingdom, with the project being opposed by the Royal Dutch and Royal Danish Shells, and the US companies, which argue that the pipeline will disrupt existing pipeline infrastructure.
With the Trump administration in the middle of a major economic and social shift, it is unclear how well the US is positioned to manage this new oil and resource development industry.
This is why the US government has taken on a major role in the construction of the pipeline.
Under the American Energy Policy Act of 1992, which was passed by the US Congress, the federal government is expected to play a role in developing and deploying pipelines.
The pipeline project, however, is being undertaken under the US Department Of Energy’s (DOEE) “National Petroleum Reserve Development” (NPRD), a program that is intended to help US producers expand their oil and natural gas reserves.
The project has been funded by the Department of Defense and is expected, along with other infrastructure projects, to provide a major boost to US energy production.
In the first few months of the project, the US Environmental Protection Agency (EPA) has been preparing a final environmental impact statement, which is expected in the coming weeks.
“There is a huge amount of infrastructure in place to develop and to get the project off the ground,” says Jim Schmid, a senior analyst at the oil and energy consulting firm Wood Mackenzie.
“This is a really big deal for the US.
We are starting from scratch, which means we are going to have to take a lot of time to develop this pipeline and put it through its paces.”
The US President Donald Trump has been vocal in his opposition to pipelines, with many politicians, environmentalists and oil industry lobbyists calling for the construction to be halted and for the project to be abandoned.
In December, the President wrote an opinion piece for The Washington Post, saying the Keystone XL pipeline project would create jobs and reduce the US dependence on foreign oil, while “undermining our energy independence”.
The pipeline is expected and expected to be built in North Dakota and is due to begin operations in 2019.
The company that will build the pipeline, Plains All American Pipeline Co (PAPP), is owned by the Texas-based Energy Transfer Partners, which also owns the Dakota Access pipeline.
The new project is expected for completion by 2021, with a final pipeline capacity of 1.7 billion barrels.
The first phase of the Pipeline and Hazardous Materials Expansion (PHMME) project was completed last year, with plans to expand the existing pipeline to carry Canadian oil to refineries in Texas.
The final phase, which will be the biggest phase of development, will be completed in 2022.
In January 2018, the White House issued a memorandum of understanding (MOU) with the US Government Accountability Office (GAO) to begin construction of a new pipeline between the two countries.
The MOU stipulates that the company will be responsible for all environmental reviews of the final phase of pipeline construction.
The agreement between the US State Department and the Department Of Justice (DOJ) was signed by US Secretary of State John Kerry, Secretary of the Army James Mattis and Assistant Secretary of Energy Michael Shannon.
The memorandum of agreement was published in the Federal Register on Thursday.
The proposed pipeline will