EUB Backgrounder: Frequently Asked Questions

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How does the 25.5 billion barrels of bitumen conserved through the Decision and Order compare with Alberta’s bitumen production in 2003?

• Based upon the 352 million barrels of bitumen produced in Alberta in 2003, the 25.5 billion barrels of bitumen conserved represent over 70 years of bitumen production in Alberta.

How does the 280 billion cubic feet of natural gas shut-in through the Decision and Order compare with Alberta’s gas production in 2003?

• Based upon the 4.8 trillion cubic feet of natural gas produced in Alberta in 2003, the 280 billion cubic feet of shut-in gas represent about 3 weeks of gas production in Alberta.

The EUB states that less than 1 per cent of Alberta’s annual gas production and less than 1 per cent of Alberta’s remaining gas reserves are to be shut in. Last year, the EUB stated that about 2 per cent of Alberta’s annual gas production and about 2 per cent of Alberta’s remaining gas reserves would be shut-in on an interim basis. Why has the amount of gas to be shut-in been reduced?

• The 2004 Decision and Orders shut-in less gas than what was proposed to be shut-in last year because;
  • In July 2003, the EUB ordered an interim shut-in of all the gas in the Wabiskaw-McMurray strata, subject to the completion of the Regional Geological Study. The Regional Geological Study provided the EUB with the detail it needed to more accurately identify the specific Wabiskaw-McMurray gas that is in contact with bitumen, and therefore posing a threat to bitumen recovery.
  • The 2004 Decision and Orders only shut-in gas that is in contact with bitumen, other Wabiskaw-McMurray gas that is not in contact with bitumen is allowed to produce. Therefore the amount of gas to be shut-in has been reduced from the 2 per cent of Alberta’s annual gas production and reserves stated last year, to less than 1 per cent.

The EUB states that about 25.5 billion barrels of bitumen are at risk and conserved through the Decision and Orders. In July 2003, the EUB stated that about 100 billion barrels of bitumen were at risk due to Wabiskaw-McMurray gas production. Why is that number lower?

• 25.5 billion barrels of bitumen are shut-in because;
  • In July 2003, the EUB ordered an interim shut-in of all the gas in the Wabiskaw-McMurray strata, subject to the completion of the Regional Geological Study. The Regional Geological Study provided the EUB with the detail it needed to more accurately identify the specific Wabiskaw-McMurray gas that is in contact with bitumen, and therefore posing a threat to bitumen recovery.
  • The 2004 Decision and Orders only shut-in gas that is in contact with bitumen. Other Wabiskaw-McMurray gas that is not in contact with bitumen is allowed to produce. Therefore, the amount of bitumen at risk has been reduced from 100 billion barrels to 25.5 billion barrels.

How many wells are dealt with in the Decision and Orders?

• 1806 wells are dealt with by Decision 2004-045, Order 04-001, and Order 04-002.

How many wells are allowed to produce Wabiskaw-McMurray gas due to the Decision and Orders?

• The Decision and Orders allow full Wabiskaw-McMurray gas production from 552 wells.
• The Decision and Orders allow partial Wabiskaw-McMurray gas production from an additional 233 wells.

How many wells have gas that is contact with bitumen and will be shut-in because of the EUB Decision and Orders?

• The Decision and Orders have ruled that 1021 wells may pose a risk to bitumen recovery and are not allowed to produce any Wabiskaw-McMurray gas,
  • 186 of these wells are abandoned,
  • 505 of these wells may be capable of producing gas from other non-Wabiskaw McMurray gas zones,
  • 330 of these wells do not have the ability to produce gas from any other zone.

How many Wabiskaw-McMurray gas intervals are affected by the Decision and Orders?

• A total of 2873 gas intervals are the subject of the Decision and Orders. Of those intervals;
  • 1222 gas intervals are not in contact with bitumen and are allowed to produce gas,
  • 1651 gas intervals are in contact with bitumen and are shut-in.

• A gas interval is a distinct unit of natural gas. There can be multiple gas intervals in each well.

How many wells are currently shut-in?

• There are currently 280 wells shut-in in the Wabiskaw-McMurray. The shut-in gas amounts to 80 million cubic feet of gas production per day, or 34.4% of the area’s daily gas production. There are currently 658 wells in the Wabiskaw-McMurray that have temporary exemptions.

What are the Oil Sands?

• Alberta’s oil sands are a mixture of sand, clay, water and bitumen.

What is Bitumen?

• Bitumen is thick, heavy oil with the consistency of asphalt and is contained within the spaces between sand grains in the oilsands.

Facts and Figures about Alberta's Energy Industry

• The Alberta Energy and Utilities Board is responsible for effectively regulating;
  • 125,780 operating natural gas and oil wells (including 77,500 gas wells)
  • 16,500 oil batteries and satellites
  • 8,365 natural gas batteries
  • 733 gas plants
  • 330,000 km of pipelines
• In 2003, Alberta produced;
  • 352 million barrels of bitumen
  • 230 million barrels of crude oil
  • 4.8 trillion cubic feet of natural gas
• In 2003, Alberta's energy reserves included;
  • 175 billion barrels of remaining established bitumen
  • 1.6 billion barrels of remaining established crude oil
  • 40 trillion cubic feet of remaining established natural gas
• In 2003, the EUB effectively processed about 43,000 applications relating to energy facilities (including wells, pipelines, batteries and gas plants), resources, and utilities.

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