The Canadian oil and gas sector

An overview is provided of the global oil and gas market, industry, reserves, and factors affecting the market's instability. The Canadian oil and gas sector is then profiled. Research and technology strategies in the global oil and gas sector are reviewed in the areas of increasing supplies, improving energy efficiency, developing alternative energy sources, mitigating environmental impacts, and developing new products and services. Finally, research, development, and technology strategies in the Canadian oil and gas sector are evaluated, including private sector research and development (R ampersand D) government support programs, and technology opportunities for the industry in refining, in-situ oil sands production, ultrasour gas production, and downstream gas processing. Total R ampersand D spending by the Canadian oil and gas industry is only ca $300 million/y, with most small to medium-size companies doing little R ampersand D. Since 64% of the Canadian petroleum sector is foreign owned, decisions to increase R ampersand D investment must involve foreign decision makers. The focus of Canadian R ampersand D tends to be upstream-oriented and on the exploitation of unconventional resources, notably the oil sands. Opportunities also exist in downstream R ampersand D such as alternative fuels and energy systems management. Since upstream R ampersand D is a risky long-term proposition, the roles of resource companies, refiners, research institutions, and Canadian and overseas governments must be defined to ensure that research efforts are coordinated and costs are shared equitably. This will likely require a concerted action plan specifying technology goals, memoranda of understanding between all the players, and reasonable accountability levels. 19 refs., 10 tabs