$2.5 Billion Upgrade for BP-Husky Refinery to Process Heavy Oil from Canadian Oil Sands

Strategic Insights -

Toledo's 91-year-old BP-Husky refinery, located in the suburb of Oregon, is undergoing a $2.5 billion upgrade to process heavy oil extracted from Alberta's oil sands. The project, a partnership between BP PLC and Husky Energy Inc., has been three years in the making and is expected to generate hundreds of construction jobs, but will not add many permanent positions at the plant. The upgrade aims to increase the refinery's capacity to process 170,000 barrels per day of heavy oil, up from its current capacity of 60,000 barrels per day.

Key Takeaways:

  • The $2.5 billion upgrade for BP-Husky's Toledo refinery will allow the facility to process tens of thousands of barrels of heavy oil extracted from the oil sands of Alberta.
  • The project, a partnership between BP PLC and Husky Energy Inc., has been three years in the making and is expected to commence physical activity on the extraction site in Alberta next month.
  • The upgrade will increase the refinery's capacity to process 170,000 barrels per day of heavy oil, up from its current capacity of 60,000 barrels per day, making it a significant step in progressing BP Canada's upstream oil sands portfolio.
  • The Sunrise field is believed to contain as much as 3.7 billion barrels of usable oil and is one of many projects on the vast Athabasca Deposit, which may hold at least 160 billion barrels of oil trapped as bitumen.
  • The oil sands deposit in Alberta has seen a 14% growth in raw bitumen production in 2009, reaching 1.5 million barrels a day, and is expected to double to 3 million barrels a day within 10 years.

Statistics:

  • $2.5 billion: The cost of the refineries' upgrade to process heavy oil from the Alberta oil sands.
  • 170,000 barrels per day: The expected capacity of the refinery after the upgrade.
  • 60,000 barrels per day: The current capacity of the refinery.
  • 160 billion barrels: The estimated amount of oil trapped as bitumen in the Athabasca Deposit.
  • 3.7 billion barrels: The estimated amount of usable oil in the Sunrise field.
  • 1.5 million barrels per day: The growth in raw bitumen production in Alberta in 2009.
  • 3 million barrels per day: The expected output from the oil sands deposits within 10 years.
  • 9 million barrels per day: The approximate amount of oil imported into the United States daily.
  • 60,000 employees and contractors: The current workforce at the refinery.
  • 4 decades: The expected duration of long-term drilling and facility development for the project.

Sources:

  • "The Blade, Toledo, Ohio"
  • "McClatchy-Tribune Information Services"
  • "Canadian Association of Petroleum Producers"