Exploration and Production
Conducted through our subsidiary Chevron Canada Resources, Chevron's Canadian exploration and production efforts include offshore crude oil and natural gas projects in northern and Atlantic Canada, oil sands projects in Alberta, and natural gas and liquids from shales in western Canada. The company is also involved in the proposed Kitimat liquefied natural gas (LNG) project in northern British Columbia.
Net daily production in 2014 from Canadian operations was 24,000 barrels of crude oil, 10 million cubic feet of natural gas and 43,000 barrels of synthetic oil from oil sands.
Oil Sands Innovation
Oil sands, such as those found in northern Alberta, are a naturally occurring mixture of bitumen—a heavy, viscous form of crude oil mixed with water, sand and clay. Using hydroprocessing technology, bitumen can be refined to yield synthetic crude oil.
Chevron has a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) near Fort McMurray, Alberta. In 2014, average total daily production increased to 243,000 barrels (43,000 net) of synthetic oil. The Quest Project, a carbon capture and sequestration project, is being built to capture and store more than 1 million tons of carbon dioxide produced annually by bitumen processing at the AOSP.
Investing in LNG
Chevron holds a 50 percent interest in the Kitimat LNG Project. The project includes natural gas development in the Horn River and Liard basins in northeastern British Columbia and the 300-mile (480-km) natural gas Pacific Trail Pipeline (PTP), which leads to the liquefaction and shipping facility near Kitimat.
The project is planned to include a two-train LNG facility and has a 20-year, 10 million-metric-ton-per-year LNG export license from the National Energy Board. Kitimat LNG has First Nations partnerships that are unique in the Canadian energy industry. They include benefit agreements with the Haisla Nation for the LNG plant and with 16 First Nation bands along the PTP route.
Exploring for Shale Gas
Chevron holds 228,000 net acres (923 sq km) in the Duvernay Shale in Alberta and approximately 200,000 overlying acres (809 sq km) in the Montney tight rock formation. Chevron has a 70 percent-owned and operated interest in most of the Duvernay acreage after selling a 30 percent interest in the Duvernay Shale in the fourth quarter of 2014 and creating a joint partnership. Production from the initial wells in the Duvernay acreage continued to demonstrate good flow rates and high condensate yields. Drilling also began during 2014 on an expanded 16-well appraisal program. By early 2015, a total of 12 wells had been tied in to production facilities.
High Technology Offshore Newfoundland and Labrador
Off the east coast of Newfoundland and Labrador, Chevron has a 26.9 percent nonoperated working interest in the Hibernia Field that includes two key reservoirs, the Hibernia and Ben Nevis Avalon formations. Production decline continues to be mitigated through drilling programs for both reservoirs. Average net daily crude oil production in 2014 was 23,000 barrels.
Cutting-edge, cost-effective technologies are employed at the Hibernia Field. The production platform is specially built to withstand blows from large icebergs. The development includes wells that reach up to 4.5 miles (7.2 km) in length and are drilled to a depth of almost 13,000 feet (3,960 m).
Chevron has a 23.6 percent nonoperated working interest in the unitized Hibernia Southern Extension areas of the Hibernia Field. In 2014, one water injection well was completed, one water injection well began drilling and the subsea equipment was installed. Startup is planned for 2015.
Southeast of Hibernia lies Hebron, a heavy oil field in which Chevron holds a 26.6 percent nonoperated working interest. Plans call for a free-standing concrete gravity-base structure with integrated drilling and production facilities and a capacity of 150,000 barrels of crude oil per day. Construction continued on the project in 2014. First oil is expected in 2017.
In the Flemish Pass Basin, Chevron holds a 40 percent nonoperated working interest in exploration rights for two blocks totaling 429,000 net acres (1,736 sq km). A 3-D seismic survey was completed on these blocks, and drilling is expected to begin in late 2015.
In Calgary, Alberta, the Chevron Arctic Center is home base for some of the world's foremost experts in Arctic exploration and development.
Natural Gas Trading and Storage
Chevron provides customers with natural gas storage and conducts trading activities in Canada. The company has a 94 percent interest in Aitken Creek and a 43 percent nonoperated interest in the Alberta Hub natural gas storage facilities. Together they have an approximate total capacity of 100 billion cubic feet. These facilities are adjacent to the Duvernay, Horn River, Liard and Montney shale formations.
Retail, Commercial and Lubricant Sales
With an average of more than 80,000 customer visits per day, Chevron Canada is British Columbia's market leader in transportation fuels. We are the largest gasoline convenience store marketer in the province, and our commercial and industrial cardlocks make us the top regional commercial fuel provider in the province. Our network includes:
- 175 Chevron® service stations
- 135 Town Pantry® convenience stores
- 23 White Spot Triple O's™ quick-serve restaurants
- 35 commercial cardlock truck stops in British Columbia and three more in Alberta
- 3 commercial marine fuel facilities
- 12 lubricant marketers located across Canada
Chevron Canada also supplies between 30 percent and 40 percent of the jet fuel used at Vancouver International Airport.
Chevron markets and sells Havoline®, Delo® and Techron® brand lubricants, coolants and fuel additives to consumer, commercial and industrial market customers through distributors.
Chevron's Burnaby Refinery was built in 1935. The 55,000-barrel-per-day facility is the only refinery on the west coast of British Columbia. It meets 25 percent of the province's demand for transportation fuel.
On the shores of Burrard Inlet, near Vancouver, the refinery produces petroleum products from Canadian crude oil transported by pipeline, rail and truck. Conventional and synthetic crude oil is processed into propane, gasoline, jet fuel, distillate and asphalt.
The refinery provides jobs for approximately 400 employees and contractors.
Updated: May 2015