Exploration and Production
Chevron's exploration and production efforts include traditional onshore and offshore oil and gas projects in northern Canada, western Canada and off Canada's east coast. We also are involved in producing energy resources in oil sands extraction projects in Alberta. Chevron's total daily production in 2010 from Canadian operations was 223,000 barrels of crude oil (29,000 net), 30 million cubic feet of natural gas (4 million net) and 126,000 barrels of synthetic oil from oil sands (24,000 net).
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 interest in the Athabasca Oil Sands Project (AOSP) and the AOSP Expansion 1 Project near Fort McMurray, Alberta. The AOSP Expansion 1 Project, which began production from the Jackpine Mine in the third quarter of 2010, is expected to increase daily production capacity from oil sands by 100,000 barrels to more than 255,000 barrels in early 2011. In 2010, total daily production from oil sands averaged 126,000 barrels (24,000 net) of synthetic oil.
Expansion of the Scotford upgrader, also part of the project, is expected to be completed in the second quarter of 2011. The upgrader processes bitumen into synthetic crude oils.
Exploring for Shale Gas
Chevron is developing shale gas resources in western Canada. Shale gas is natural gas found in shale rock formations beneath the earth.
By the end of 2010, Chevron had increased our owned and operated shale gas exploration leases to approximately 200,000 acres (809 sq km) in Alberta. Exploration planning on these leases has begun, and we plan to start appraisal drilling in the second half of 2011.
High Technology Offshore Newfoundland and Labrador
Off the east coast of the province of Newfoundland and Labrador, Chevron has a 26.9 percent nonoperated working interest in the Hibernia Field that includes two key reservoirs, Hibernia and Ben Nevis Avalon. Average total daily crude oil production in 2010 was 154,000 barrels (28,000 net).
At the Hibernia Field, cutting-edge, cost-effective technologies are employed. The production platform is specially built to withstand blows from large icebergs. At Hibernia, a 4.5-mile-long (7.2-km) directional well was drilled to a depth of almost 13,000 feet (3,960 m).
The Hibernia Southern Extension (HSE) development is expected to stem the production decline within the Hibernia Field. Chevron has a 23.6 percent nonoperated interest in the unitized HSE areas of the Hibernia Field, with the Newfoundland and Labrador government's energy corporation acquiring a 10 percent working interest in February 2010.
Plans call for drilling production wells from the existing Hibernia gravity base structure platform and subsea injection wells. Regulatory, federal and provincial government approval of the development plan was received in late 2010, with further government approval of required agreements coming in early 2011. The project was subsequently approved by the joint venture. First production is expected in late 2011.
Southeast of Hibernia lies Hebron, a heavy oil field in which Chevron holds a 26.6 percent nonoperated working interest. Plans call for a freestanding concrete gravity-base structure using directional drilling techniques. Front-end engineering and design work began in the third quarter of 2010.
North of Hibernia and Hebron is the deepwater Orphan Basin project. Chevron operates and holds a 50 percent interest in an exploration license totaling 1.5 million acres (6,040 sq km). Drilling operations on the second Orphan well were completed in mid-2010, and the water depth, at 8,537 feet (2,602 m), set a new record for deepwater wells drilled in Canada.
Chevron owns and operates Exploration License 1109 offshore eastern Labrador. The parcel is approximately 75 miles (121 km) out to sea and covers 574,000 acres (2,323 sq km) in water depths of 500 to 6,600 feet (150 to 2,000 meters). A seismic survey in the North Grand Banks region offshore Newfoundland is planned for summer 2011.
Arctic Exploration
Chevron is pursuing the development of resources in the Northwest Territories and the Canadian Beaufort Sea.
In the Mackenzie Delta region of the Northwest Territories, Chevron holds a 25 percent nonoperated working interest in several onshore exploration leases. There were no exploration activities on these leases in 2010.
In the Beaufort Sea, Chevron owns and operates two exploration licenses. One license was acquired in 2007 and covers approximately 267,000 acres (1,081 sq km); the other was acquired in 2010 and covers 508,800 acres (2,060 sq km).
Chevron holds a 34 percent nonoperated working interest in the offshore Amauligak discovery and as of early 2011 was assessing development alternatives.
In Calgary, the Chevron Arctic Center is home base for some of the world's foremost experts in northern oil and gas exploration and development.
Marketing and Retail
With an average of more than 80,000 customer visits per day, Chevron Canada ranks as British Columbia's market leader in transportation fuels. Our network also makes us the largest gasoline convenience store marketer in the province. It includes:
- More than 161 service stations
- More than 130 Town Pantry® convenience stores
- 20 White Spot Triple O® quick-serve restaurants
Chevron is a key supplier of condensates in British Columbia. We service the trucking industry from 10 commercial fueling facilities throughout British Columbia and Alberta. In addition, we are the largest supplier of jet fuel to Vancouver International Airport.
Refining
Chevron's Burnaby Refinery was established in 1935. The 55,000-barrel-per-day facility is the only refinery on the west coast of British Columbia, Chevron Canada Ltd.'s primary marketing area.
In Burnaby, on the shores of Burrard Inlet near Vancouver, the refinery produces petroleum products from Canadian crude oil. The oil arrives at the refinery by pipeline from northern British Columbia and Alberta.
Conventional and synthetic crude oils, natural gas condensate, and butane are transformed into gasoline, diesel and jet fuels; asphalt; heating fuels; heavy fuel oils; butane; and propane.
Updated: March 2011
Cautionary Statement