Bitumenous rock, Wikimedia Commons, CC License
FORT MCMURRAY — Alberta’s first new oilsands project in more than a decade has begun commercial production in the oilsands region southeast of Fort McMurray, marking a significant milestone for Canada’s energy sector.
International Petroleum Corp. says its Blackrod project, located about 150 kilometres southeast of Fort McMurray, entered commercial production at the end of May. The project is expected to eventually produce about 80,000 barrels of oil per day, with output projected to reach 30,000 barrels daily by late 2027 during its initial phase.
The project is the first new oilsands development to begin production in Alberta since 2014.
The startup comes as Canada’s oilsands sector sees renewed attention amid growing concerns about global energy security and supply reliability.
Industry analysts note oilsands producers have spent years reducing costs and improving efficiency. Recent reports suggest some oilsands operations now have production breakeven costs competitive with parts of the U.S. shale sector.
The Blackrod project was completed largely within its planned budget of approximately $1.2 billion and began production earlier than originally scheduled.
The development also comes amid renewed interest in Canada’s energy sector from major international oil companies. Recent reports have suggested several global energy firms are examining acquisition opportunities in Canada as demand grows for stable and secure energy supplies.
Alberta’s oilsands contain about 97 per cent of Canada’s proven oil reserves, representing roughly 167 billion barrels of recoverable crude.
The sector set a production record last year, with oilsands output reaching 3.67 million barrels per day in July. Production is expected to continue growing as producers take advantage of expanded export capacity through the Trans Mountain pipeline.
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