Canada

Canada

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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 Atlantic and northern 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) and Pacific Trail Pipeline projects in British Columbia.

Net daily production in 2013 from Canadian operations was 27,000 barrels of crude oil, 9 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 2013, average total daily production increased to 236,000 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. It is expected to begin operation in 2015.

Investing in LNG

In February 2013, Chevron acquired a 50 percent-owned and operated interest in the Kitimat LNG project and proposed Pacific Trail Pipeline and a 50 percent nonoperated working interest in 644,000 total acres (2,606 sq km) in the Horn River and Liard shale gas basins in British Columbia. Plans for the Kitimat project call for an LNG facility with two processing units capable of producing 10 million metric tons of LNG per year. Front-end engineering and design was under way in 2013, and early site preparation had begun.

Exploring for Shale Gas

Chevron is developing natural gas from shale in Alberta. In 2013, Chevron acquired 86,000 total additional acres (348 sq km) in the Duvernay Shale. This expanded our exploration leases to 339,000 total acres (1,372 sq km). Chevron also has approximately 200,000 acres in the Montney tight rock formation. Similar to shale formations, a tight rock formation has low permeability and typically requires horizontal wells and hydraulic fracturing in order to produce economically. At the end of 2013, these holdings included 316,000 total acres (1,279 sq km) in properties where Chevron has a 100 percent-owned and operated working interest. In 2013 a multiwell program was completed at Duvernay. By early 2014, nine wells were completed and tied into 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 2013 was 27,000 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 2013, drilling began for two water-injection wells to support the producing wells, and installation of subsea equipment was started. 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 $14 billion project in 2013. 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 approximately 1.1 million acres (4,340 sq km). A 3-D seismic survey has been completed on these blocks in anticipation of a drilling decision in 2014. In 2013, the company relinquished its license in the Orphan Basin and Exploration License 1109 offshore Labrador.

Arctic Exploration and Development

Chevron has two exploration licenses in the Beaufort Sea. We own and operate the first license and have a 60 percent interest in and operate the second. In 2013, we evaluated 3-D seismic data from the second license.

Chevron also acquired an additional 4.6 percent working interest in the offshore Amauligak discovery, bringing Chevron’s total nonoperated working interest to 40 percent. We are assessing development alternatives for Amauligak.

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.

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:

  • 161 service stations
  • 134 Town Pantry® convenience stores
  • 21 White Spot Triple O™ quick-serve restaurants

Chevron is a key supplier of condensates in British Columbia. We service the trucking and other commercial industries from a network of 40 commercial credit-card-operated facilities, commercial bulk fuel delivery facilities, and marinas throughout British Columbia and Alberta. In addition, we supply more than 40 percent of the jet fuel used at 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 coast of British Columbia, Chevron Canada Ltd.’s primary marketing area.

On the shores of Burrard Inlet, near Vancouver, the Burnaby Refinery produces petroleum products from Canadian crude oil. The oil arrives at the refinery by pipeline, rail and truck 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: May 2014

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