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Division
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PO Box 7970
Madison, WI 53707-7970
USA
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Vol.
8 #4, March 2009
Canadian Oil Sands Still Presents Opportunities
 There’s
no question that the decline in the price of oil has affected activity
in the oil sands regions of Western Canada, but the annual Buyers and
Sellers Forum in Edmonton, Alberta in early February offered evidence
that the region still offers business opportunities for Wisconsin
firms. Up until second quarter of 2008, the Province of Alberta
was still booming at record levels. Overall 2008 expenditures on
oil sands projects topped $29 billion (Canadian). Current
spending levels are more in line with activity in 2006, before the
market soared with rising oil prices.
During the boom time, cost overruns due to labor shortages and soaring
commodity and input prices became the norm. With the current slowdown,
the large oil and gas companies speaking at the forum emphasized the
need to streamline their supply chains and bring their costs back in
line. Vendors offering cost-saving techniques now have an
advantage. The need for ongoing maintenance and repair has
increased in the field. Products in demand continue to include
structural steel, pressure vessels, heavy duty castings, forged steel
dies, and extreme wear materials.
Carbon Capture and Sequestration (CCS) was a major topic of
discussion. Canadian federal legislation mandates the
construction of CCS facilities for new oil sands and coal fired
generation facilities as of 2012. These projects will provide new
opportunities for equipment manufacturers, geologists, engineers, and
consultants. Many of the coal-fired power plants will need to be
retrofitted for carbon capturing, miles of pipelines will be
constructed for transportation, and sites selected for sequestration
and extraction of new deposits. Specific equipment requirements
include compression equipment, valves, monitoring equipment, storage
vessels and solvents and absorbents.
Nuclear energy is also being evaluated as a complimentary technology;
potentially providing electricity for the massive amounts of steam
needed for bitumen/sand separation. No reactors have been built
in Canada since the early 1970s, but Ontario Power Generation has put
out a bid for a new nuclear facility to be built in Darlington, Ontario.
If you would like additional information regarding opportunities in
Canada, contact Mr. Stanley Pfrang, Commerce’s Canada Specialist,
stanley.pfrang@wisconsin.gov, (608) 267-0639.
--Nancy Ward, Director of the Canadian Trade Office
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