Canadian Oil Sands - Top Crude Oil Source

By Andrea: http://oilshalegas.com

A recent study from Cambridge Energy Research Associates (CERA) predicted that Canadian oil Sands will most likely become the number 1 source of U.S. Crude oil import this year. The study concluded that by 2030, oil sands could represent 36% of oil imports. Compare this against an actualy 8% in 2009, that is a huge growth and may be something to keep an eye on. In 2009, oil sands produced 1.35 million barrels per day, this study predicts that the rate could rise to between 3.1 mbd and 5.7 mbd by 2030.

While this sounds promising by the numbers, every good thing has its price. There is currently a lot of controversy around the production of oil sands. Greenhouse gas emissions from oil sands are about 5-15% higher than the average crude oil produced in the U.S., however; the report says that with the advancement of technology in oil sand production, there is a continuous improvement in the progress of cutting greenhouse gas emission and reducing its environmental impact.

Despite some opposition, the benefits of Canadian oil sands could prove to be a strong positive force in the U.S. economy:

“The fact that oil sands by themselves—were they a country—are set to become the largest single source of U.S. crude oil imports this year, emphasizes the importance they have attained as a supply source for the United States,” said IHS CERA chairman Daniel Yergin, author of the groundbreaking history of oil, The Prize.

Oil sands also contribute to U.S. energy security, the report says, because Canadian oil is “less foreign” than imports from other countries. “By most measures Canada’s oil is less foreign than other potential sources of supply,” the report says. “Oil supply from Canada is stable, proximate, connected by pipelines, and part of a limited set of oil development opportunities in which private oil companies—including US firms—can openly and securely invest.”

Companies currently exploring oil sands include:

Suncor Energy Inc. (SU)

Chevron Corporation (CVX)

Royal Dutch Shell

Devon Energy Corp. (DVN)

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Alberta Canada Oil Sands - Peace River Oil Sands Area

By Andrea: http://oilshalegas.com

Today we are profiling Tamm Oil & Gas Corp (TAMM.OB):

TAMM has acquired a 100% working interest in 55 contiguous sections of mineral rights or 35,200 acres, at Manning, Alberta in the Peace River Oil Sands Area. These mineral rights are considered to be prospective for heavy oil in the Mississippian Debolt, Elkton and other formations.

-"Internal company estimates of potentially 3 billion original barrels of heavy oil in place on the properties within the various zones with the majority in two specific zones".

-Current plan for 2009/2010 winter season would be a 3-5 well drilling and coring program with an additional 20 to 30 km seismic program to supplement the drilling and core data and thus continue to evaluate the potential resource.

-Work is currently ongoing to further study geology and acquire "trade data" seismic and map the adjoining lands for other potential acquisitions and to optimize the drilling/coring program.

-Subsequent plans might be building of sufficient year-round access and infrastructure to support increased development, ongoing drilling and seismic to more fully define the reserve, a test pilot of a one or two well production program -- to test for optimum methods of recovery -- CCS -- either vertical or horizontal or both, SAGD type enhanced recovery, Cold Flow, TIDE or other models.

-Current typical costs for these types of production methods, at the commercial pilot stage are around $40/bbl -- thus a good return for initial production aiming at 18% primary recovery and cyclic steam at 30% recovery. As production in this area is still in the early stages, the anticipated recovery rates may increase with experience in working with these potential reservoirs.

-Based on the results of the initial testing -- secondary testing might include a full scale pilot of between 5000 to 8000 bbls/d. This could potentially begin in 2011/2012.

Further information on Tamm Oil & Gas Corp (TAMM.OB), visit: http://www.tammoilandgas.com/s/AreaOfExploration.asp

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