highlights of operations
Chevron has been finding, producing and refining crude oil and natural gas and delivering needed energy in Canada for more than 80 years. Chevron operates in Canada through two wholly owned subsidiaries.
Chevron Canada Resources manages our upstream exploration, development and production activities. Most of our Canadian crude oil production comes from the Hibernia Field, offshore Newfoundland and Labrador. In the Northwest Territories, we have exploration interests and discovered resource interests in the Beaufort Sea region. Chevron is a partner in the Athabasca Oil Sands Project (AOSP) in northern Alberta, which produces bitumen from oil sands. We are developing natural gas from shale at Duvernay in Alberta. We also have interests in shale acreage and in a significant liquefied natural gas (LNG) project in British Columbia.
Chevron Canada Limited serves the needs of motorists and sells aviation fuels and other refined products. In British Columbia, where Chevron Canada Limited operates the Burnaby Refinery, we are the top seller of transportation fuels.
Our company and employees are active in the community, promoting many educational, cultural and environmental programs.
exploration and production
Chevron’s Canadian exploration and production efforts include offshore crude oil projects in 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 LNG project in northern British Columbia.
Net daily production in 2015 from Canadian operations was 20,000 barrels of crude oil, 14 million cubic feet of natural gas and 47,000 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 AOSP near Fort McMurray, Alberta. In 2015, average net daily production increased to 47,000 barrels of synthetic oil. The Quest Project, a carbon capture and sequestration project, was commissioned in the fourth quarter. The project is designed 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 operated interest in the Kitimat LNG project. The proposed project includes an upstream component consisting of 300,000 net acres (1,214 sq km) in the Liard and Horn River shale gas basins in northeastern British Columbia, and a downstream component that includes the 300-mile (480-km) natural gas Pacific Trail Pipeline (PTP) and a liquefaction and shipping facility located at Bish Cove near Kitimat. Chevron assumed operatorship of the upstream portion of the project in May 2015 and has continued with the Liard appraisal program that began in 2014.
The Kitimat LNG 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 Canada’s National Energy Board. The project has First Nations partnerships that are unique in the Canadian energy industry. They include benefit agreements with the Haisla Nation for the LNG plant site and with 16 First Nation bands along the PTP route.
The Kitimat LNG project is currently focused on preconstruction engineering and design work, assessment of capital cost reduction and optimization opportunities, appraisal of the Liard resource, securing LNG sales agreements, establishing a clear, stable and competitive fiscal framework with government, and working with local First Nations.
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 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 continued during 2015 on an expanded 16-well appraisal program. By early 2016, a total of 28 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 2015 was 20,000 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 where production began in 2015.
Southeast of Hibernia lies Hebron, a heavy oil field in which Chevron holds a 29.6 percent nonoperated working interest. Plans call for a freestanding 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 2015. 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 321,000 net acres (1,300 sq km). A 3-D seismic survey was completed on these blocks. Drilling began at the Fitzroya prospect in the fourth quarter of 2015 and was completed in February 2016. Results are being evaluated. In November 2015, Chevron was awarded a 35 percent interest in another Flemish Pass Basin block, NL 15-01-02, with 237,000 net acres (959 sq km). Chevron is the operator.
In Calgary, Alberta, the Chevron Arctic Center is home base for some of the world’s foremost experts in Arctic exploration and development.
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:
- 179 Chevron® service stations
- 136 Town Pantry® convenience stores
- 23 White Spot Triple O’s™ quick-serve restaurants
- 38 commercial cardlock truck stops in British Columbia and three in Alberta
- Three 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.
in the community
Chevron supports the communities where we live and work and contributes to a wide range of programs and organizations that focus on health, education, economic development, Aboriginal initiatives and community capacity building. We have worked with some of our partners for more than 20 years.
Chevron sponsors numerous programs and organizations that offer services ranging from teaching leadership skills to First Nations and community leaders to addressing early childhood literacy and youth homelessness.
Chevron sponsors the award-winning Chevron Open Minds™ program, which gives children and their teachers a weeklong hands-on learning experience tied directly to curriculum objectives. Programs take place at a zoo, a historical park, a science center and two museums. Chevron sponsors five Open Minds sites: three in Calgary and one in Fort McMurray, Alberta, and another in St. John’s, Newfoundland and Labrador.
Chevron contributes to programs that help train and equip people and organizations for success. For example, the company has provided $1 million since 2005 to Stella’s Circle in Newfoundland and Labrador. The funding is used to provide training and work opportunities to individuals with complex challenges.
Chevron supports the HR MacMillan Space Centre’s STARLAB portable planetarium. Through Chevron’s support, STARLAB has traveled to remote northern British Columbia communities and First Nation communities, helping to engage students, educators and communities in hands-on learning in science, technology, engineering and math (STEM). Astronomers project the local night sky and traditional First Nation cultural images inside the planetarium, helping students connect to their area and culture.
Chevron employees are directly involved in community engagement. The company supports employees and retirees who volunteer through company-organized initiatives as well as projects they work on in their own time. In addition, Chevron offers time off for volunteering, matching grants and grants for accumulated volunteer time.
In 2015, Chevron added the University of Calgary to the company’s University Partnerships and Association Relations program—the second Canadian university to join. Chevron and the Natural Sciences and Engineering Research Council of Canada (NSERC) are each investing $900,000 over five years to fund the university’s NSERC/Chevron Industrial Research Chair in Microseismic System Dynamics. The aims of the chair match well with Chevron’s technology research into the increased use of microseismic data at developments such as Chevron’s unconventional shale resources in the Horn River and Liard basins in northeastern British Columbia and the Kaybob Duvernay area of Alberta.
Since 2013, Chevron’s Fuel Your School program has provided funding for more than 1,100 creative STEM projects that have benefited more than 53,700 students from 230 public schools in British Columbia. Chevron has contributed more than $1.3 million toward innovative classroom STEM materials, such as 3-D printers, robotics equipment, construction kits, tablets and circuit boards.
record of achievement
In 1935, Chevron opened a refinery in Burnaby and began selling branded fuel and lubricants in British Columbia and Alberta. The company opened the 2,000-barrel-per-day Stanovan Refinery in Burnaby in January 1936. During World War II, we increased our production and began supplying aviation fuel to Canada.
In 1954, Chevron produced an average of 11,000 barrels of oil per day. Production increased to 35,000 barrels per day in 1976. Major upgrades to the refinery’s crude unit were completed in the 1980s, and in response to the growing demand for unleaded fuels, a new alkylation unit was built. A new effluent treatment plant opened in 1998 to improve the quality of the refinery’s discharged water.
By 2001, the refinery’s plant capacity had risen to 52,000 barrels per day. In 2005, a program to reduce sulfur oxide emissions was started in collaboration with air regulators and the local community. A new cooling tower was commissioned as part of the refinery’s largest capital expenditure plan yet. In 2008, the refinery’s safety flaring system and critical electrical infrastructure were upgraded.
In 2009, modifications required to meet new provincial biofuels regulations that went into effect in January 2010 were completed at the Burnaby Refinery and distribution terminal.
Texaco® products have been sold in Canada for 50 years.
Beginning in 1989, Texaco marketing efforts in Canada concentrated on the sale of lubricants. In 2002, as a result of the Chevron-Texaco merger, the company became a national marketer of Texaco and Chevron® lubricants.
exploring for energy
Chevron drilled its first successful exploration wells in southern Alberta in 1939 and 1940 and began producing crude oil in 1941.
Field discoveries at Princess, Acheson, Homeglen-Rimbey and Nevis in the 1940s and 1950s earned Chevron recognition in the Canadian petroleum industry for our innovation and technical expertise. Next came the Mitsue and Kaybob discoveries in the 1960s, followed by Hibernia in 1979. The natural gas field in Fort Liard, Northwest Territories, was discovered in the 1990s.
In 2008, Chevron successfully led efforts to reach binding agreements with the government of Newfoundland and Labrador to enable the Hebron offshore heavy oil project to proceed.
In 2010, Chevron Canada Resources was named the Outstanding Philanthropist of the Year for Newfoundland and Labrador by the Newfoundland and Labrador Chapter of the Association of Fundraising Professionals, a prominent professional organization in that province.
In 2013, Chevron celebrated its 75th anniversary of upstream operations in Canada, marking a legacy of exploration success, innovation, growth and community support.
500 Fifth Ave. S.W.
Calgary, AB T2P 0L7
Atlantic Canada Office
Suite 700, 215 Water St.
St. John’s, NL
Chevron Canada Limited
1200-1050 West Pender St.
Vancouver, BC V6E 3T4
355 North Willingdon Ave.
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Certain terms, such as "unrisked resources," "unrisked resource base," "recoverable resources," “potentially recoverable volumes” and "original oil in place," among others, may be used to describe certain aspects of the company's portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other terms, see the "Glossary of Energy and Financial Terms" on pages 50 and 51 of the company's 2016 Supplement to the Annual Report. As used in this report, the term "project" may describe new upstream development activity, including phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investment in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term "project" as it relates to any specific government law or regulation.All trademarks, service marks, logos and trade names, whether registered or unregistered, are proprietary to Chevron, its affiliates, or to other companies where so indicated. You may not reproduce, download or otherwise use any such trademarks, service marks, logos or trade names without the prior written consent of the appropriate owner thereof.