Opportunities

Future trends in bitumen production and hydrocarbon upgrading

It is forecast that bitumen production from Alberta's oil sands will reach over three million barrels per day by 2020. 

  • Bitumen and the by-products of bitumen upgrading processes are critical feedstocks for production of refined petroleum products, petrochemicals, and fertilizers in Alberta.
  • The Government of Alberta's value-added strategy envisions the development of a world-class hydrocarbon processing hub that optimizes the value of our energy resources in the province through the adoption of new technologies and integration opportunities.

Alberta`s Value-Add Strategy – Oil sands to petrochemicals

The Government of Alberta has taken steps to develop a vision for increased production of value-add products such as petroleum products and petrochemicals based on the province's oil sands. Moving oil sands up the value chain and supporting world-class integrated hydrocarbon processing enhances the economic benefits of the resource to Albertans.

The benefits of oil sands development are felt throughout the economy, and would be further enhanced by maximizing the resource in the province:

  • Currently, one in 15 jobs in Alberta is directly related to the energy industry.
  • Oil sands activities contribute to substantial job creation in sectors such as manufacturing and retail as well as increasing access to high-tech, knowledge-based jobs.
  • Royalties from the oil sands help fund many programs and services including Alberta’s infrastructure, health and education systems, increasing our quality of life.

To maximize value from the oil sands, the creation of a highly integrated hydrocarbon processing cluster will be encouraged in Alberta. A cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field, in this case, hydrocarbon processing.

The operational benefits of an integrated hydrocarbon processing cluster include:

  • improved synergies – reducing environmental footprint of heavy industry
  • better managed development with the sharing of infrastructure, transportation and utilities between facilities
  • reduced capital and operational costs 
  • a stable labour force over the long term
  • improved overall rate of return 
  • increased R&D activity
  • higher levels of productivity

To learn more about the Government of Alberta's value-add strategy, see: 

  • Hydrocarbon Upgrading Task Force (HUTF): Formed in 2004 by the Government of Alberta and industry to develop opportunities for world-scale integrated refining and petrochemical plant clusters to convert oil sands bitumen into finished products for world markets. The HUTF commissions studies to develop business cases for value-added projects as well as advise government on measures to facilitate development.  

Market Research

Heavy Oil Alberta Project (HOAP): HOAP promotes Alberta's expertise in heavy oil and oil sands technologies, products and services internationally. An online guidebook, Alberta's Heavy Oil and Oil Sands, highlights Alberta's experiences in heavy oil and oil sands development. The guidebook also includes the first consolidated and comprehensive directory of heavy oil and oil sands companies, including producers, service and supply companies, industry associations, academic institutions and research organizations.

  • The National Buyer Seller Forum: The annual National Buyer/Seller Forum is a joint government/industry supply chain development initiative. Energy producers, manufacturers and suppliers from across Canada and the globe meet at the forum to generate new business and share best practices.

  • The Energy Resources Conservation Board produces Supply/Demand Outlook: This annual report outlines the current status of Alberta's various energy reserves, and provides supply and demand forecasts for Alberta's energy resources.

Exporting

The Exporting your products section of the website has information about exporting opportunities for Alberta Businesses. To learn more about these opportunities, browse the International market profiles.

Date Updated:
RDP-2040