There’s an old oil patch riddle: ‘What’s a barrel of oil worth in ground?’The answer might surprise: Nothing. Natta. Zip. That is, not until it can be reasonably produced, transported and sold..“(Alberta) is not going to be phasing out oil and gas production. We are working on phasing out emissions.”Premier Danielle Smith.Nonetheless, oil companies regularly perform reserves assessments as part of their disclosure efforts to make the business case of what their assets are worth. It’s essentially an inventory of their main assets — namely oil and gas.And that assessment can change based on factors such as market prices and developments in new technology that make them worth more — or less — over time.Alberta hasn’t had one since 2011. But that’s about to change after Alberta Premier Danielle Smith announced the energy department is conducting the first comprehensive reserves assessment in nearly 15 years. By contrast, oil and gas companies are routinely required to file independently audited reports annually in accordance with securities exchange rules.“We are in the process of updating our reserve study which hasn't been done in a comprehensive way… since about 2011. So you can understand why I feel so confident with all of the changes in technology that we have that are proven reserves are going to be higher,” she told the Global Energy Conference in Calgary on Tuesday morning.“But at the moment based on existing data that we have, we are the fourth largest proven oil reserves on the planet. With 200 billion barrels of recoverable oil reserves most of that in our oil sands. We also have more than 200 trillion cubic feet of recoverable natural gas and I don't even think that includes the Montney, so it is essentially limitless natural gas.”.The opening of the Trans Mountain pipeline and the impending start-up of the LNG Canada export terminal on the West Coast will provide Alberta’s energy sector the opportunity to expand production even as it strives to reduce emissions, she said. Trans Mountain alone triples the amount of oil that can be exported offshore while a final investment decision for a second LNG phase is pending.Smith repeated her oft-spoken mantra “about how (Alberta) is not going to be phasing out oil and gas production. We are working on phasing out emissions.”“This is the reason why I talk enthusiastically about how we should be in Alberta aspiring to double our oil and natural gas production and to demonstrate to everyone that we are a willing partner and that we can deliver on this,” she said to applause from delegates.Smith was speaking at the opening ceremonies of the Global Energy Show, which will host about 30,000 delegates from around the world. In addition, more than 500 vendors have set up boots and exhibitions at the trade show, including The Western Standard.
There’s an old oil patch riddle: ‘What’s a barrel of oil worth in ground?’The answer might surprise: Nothing. Natta. Zip. That is, not until it can be reasonably produced, transported and sold..“(Alberta) is not going to be phasing out oil and gas production. We are working on phasing out emissions.”Premier Danielle Smith.Nonetheless, oil companies regularly perform reserves assessments as part of their disclosure efforts to make the business case of what their assets are worth. It’s essentially an inventory of their main assets — namely oil and gas.And that assessment can change based on factors such as market prices and developments in new technology that make them worth more — or less — over time.Alberta hasn’t had one since 2011. But that’s about to change after Alberta Premier Danielle Smith announced the energy department is conducting the first comprehensive reserves assessment in nearly 15 years. By contrast, oil and gas companies are routinely required to file independently audited reports annually in accordance with securities exchange rules.“We are in the process of updating our reserve study which hasn't been done in a comprehensive way… since about 2011. So you can understand why I feel so confident with all of the changes in technology that we have that are proven reserves are going to be higher,” she told the Global Energy Conference in Calgary on Tuesday morning.“But at the moment based on existing data that we have, we are the fourth largest proven oil reserves on the planet. With 200 billion barrels of recoverable oil reserves most of that in our oil sands. We also have more than 200 trillion cubic feet of recoverable natural gas and I don't even think that includes the Montney, so it is essentially limitless natural gas.”.The opening of the Trans Mountain pipeline and the impending start-up of the LNG Canada export terminal on the West Coast will provide Alberta’s energy sector the opportunity to expand production even as it strives to reduce emissions, she said. Trans Mountain alone triples the amount of oil that can be exported offshore while a final investment decision for a second LNG phase is pending.Smith repeated her oft-spoken mantra “about how (Alberta) is not going to be phasing out oil and gas production. We are working on phasing out emissions.”“This is the reason why I talk enthusiastically about how we should be in Alberta aspiring to double our oil and natural gas production and to demonstrate to everyone that we are a willing partner and that we can deliver on this,” she said to applause from delegates.Smith was speaking at the opening ceremonies of the Global Energy Show, which will host about 30,000 delegates from around the world. In addition, more than 500 vendors have set up boots and exhibitions at the trade show, including The Western Standard.
