Asian interests in Alberta oil sands

The growing Asian interest in Alberta's oil sands and import opportunities was discussed along with the feasibility of marketing bitumen to Asia. Asia is an obvious new market for Canadian heavy oil and bitumen due to an increasing demand for petroleum products in Japan, Korea, Taiwan and China. This paper examined the following three criteria that will determine the success of any initiative to move Canadian crude oil to Asian-Pacific markets: (1) a sustainable supply from Alberta; a pipeline to transport the crude to a deepwater port on the west coast; and, a guaranteed market at the other end. The basis for Asian interest in Alberta's oil sands is the sustainable secure supply of oil for growing Asian markets; heavy dependence on supplies from the Middle East; the desire to diversify supply sources; and, opportunities to invest in oil sands developments. Examples of Asian (Japan, Korea, Taiwan and China) missions to Alberta were presented along with the challenges of getting products to market with reference to Enbridge's new market access plan, Terasen's staged capacity expansion for heavy crudes and refined products, and sea transport from Prince Rupert. The paper also included graphs depicting world GDP; incremental increase in world primary energy demand by fuel for 2000 to 2020; world oil demand by region; oil demand by region in Asia; oil demand and supply in northeast Asia (Japan, China, Korea) and dependence level on Middle Eastern oil; oil demand and supply in China; China's petroleum production and consumption; refined products market forecast for 2000 to 2020; 2002 crude oil imports to Asia; 2004 refining capacity; product quality comparisons; cost competitive study; and energy policy objectives for China, Japan, Korea and Taiwan. 19 figs