[en] This report puts forward the recommendations of the industry members of the Task Force based on an extensive review of the literature on royalties and resource rent taxes, and consultation with officials of the Alberta Department of Energy and Natural Resources Canada prior to completing the analysis. The members also ensured that the recommended terms were fair and robust under a wide range of circumstances, including price volatility, changes in inflation rates, and differences or changes in project size and scope. It was also shown that the reform of the fiscal regime for the oil sands would not by itself result in more effective development of the resource; continued efforts on research and development are necessary to provide the tools for economic production. This reform would be expected to have a strong influence on investment behaviour, and consequently a large role in shaping and pacing development. 17 figs

[en] Progress on the Lloydminster Heavy Oil Interpretive Centre, sponsored by the Lloydminster Oilfield Technical Society and expected to open in late 1998, was discussed. Some $150,000 of the $750,000 budget is already in the bank, and another $150,000 is in the pipeline. The Centre will be added to an existing and well-established visitor's site. It is reported to contain a lively and imaginatively-designed exhibit package, and promises to become a combination of educational tool and tourist attraction for the town of Lloydminster, Saskatchewan, in the heart of heavy oil country

[en] The possible use of options pricing theory for evaluating long-term capital investments is discussed. Using the Black and Scholes option pricing model, five variables were evaluated for a hypothetical oil sands project. These variables are: stock price as determined by the earning power of the company; exercise price which equals the investment cost of the project; price standard deviation which is assumed to be 50%; the length of time for which the company will maintain its option to invest in the project, and finally the risk free rate which is approximately equal to the yield in long term government securities. A sensitivity analysis on these variables can provide management with information on how best to influence the option value. A more in-depth analysis could provide valuable information about strategic choice for large projects. 5 refs., 3 figs

[en] Canada's oil sands deposits were considered to offer huge potential for wealth generation and enduring social benefits. This report showed that putting in action the plan developed by the National Task Force on Oil Sands Strategies would help unlock this potential and realize the benefits; the forecast called for a doubling or tripling of oil sands production over the next 25 years. The plan should also predicted an increase in investments in oil sands since the fiscal regime would be stable and the product would be in increasing demand. New capital investment should generate significant environmental, social and economic benefits. The real outcome would be increased national prosperity, since further growth in investment would translate into thousands of skilled jobs across Canada, expansion of government revenues, and improvements to Canada's trade balance. 1 ill

[en] The role of bacteria in the oil and natural gas industry was reviewed. Current applications in exploration, in microbial secondary oil recovery techniques, minimization of microbial induced corrosion and reservoir souring, bioprocessing of fossil fuels, and in environmental technology, were highlighted. Potential future advances into the field of genetic engineering and in-situ simulation for eventual field application were also explored. 28 refs

[en] Development of a technology to create stable aggregates with a soil-like profile capable of supporting a stable plant community, was discussed as the major challenge and primary task in restoring oil sands processing wastes, and in re-creating a self-sustaining ecosystem. A procedure for creating a soil-like profile using oil sands mining wastes, was described. Clay and water content were critical factors in the aggregation procedure. A study to evaluate the physical, chemical and biological properties of these soils and their suitability as a plant growth medium is currently underway. 6 refs., 3 figs

[en] This report demonstrated that effective marketing of Canadian oil sands products has been vital to the success of the industry in the past. Future success was expected to depend on having efficient transportation systems for the industry's products, unrestricted access to markets, and a range of products can competitively meet the needs of specific markets and customs. 9 ills

[en] A greenhouse experiment was conducted to evaluate plant performance on aggregated oil-sand processing residues. Slender wheatgrass, alpine milkvetch, and saskatoon were transplanted into aggregates made from mature fine tails mixed with composite tails and mature fine tails mixed with tailings sand. Both mixtures were amended with 5, 10 and 15 per cent peat moss. For each species, the growth rate, total shoot and root dry mass were compared among the aggregate treatments. The growth of slender wheatgrass showed no differences among treatments, whereas the growth of saskatoon seedlings increased with increasing peat moss in the aggregated material. Alpine milkvetch performed poorly on all treatments. Results strongly suggested that it is possible to create a plant growth medium using oil sands processing residues. 2 refs

[en] This report showed that science and technology are the basis for all current oil sands operations. Study proved that technological breakthroughs were essential for future grassroots investment. Assuming that the price of oil would remain in the range of 15 to 20 dollars a barrel, new technologies would be the key lever to economically sound commercial development. Technologies should reduce capital, operating as well as transportation costs. It was urged that, in the development of new technologies, emphasis should be put on technologies that eliminate or bypass entire sections of the current cost structure

[en] The Vapex process, the injection of a combination of vaporized solvents into heavy oil and bitumen reservoirs for in situ recovery of the oil is discussed. In the process, the oil is diluted with the solvent, causing the oil's viscosity to be reduced thus enabling the oil to drain into the horizontal production well. The process is non-thermal, i.e. it does not require the reservoir to be heated, hence it has the potential to greatly reduce greenhouse gas emissions, a necessary feature of thermal processes used to enhance the recovery of oil sands and heavy oils. The economic advantages of the Vapex process are demonstrated on the basis of experimental results from three reservoirs and field scale numerical simulation. An overview of the integrated physical model, numerical simulation, facilities design, well specifications and production/transportation/marketing work that underlie the economic calculations is provided. A substantial experimental field pilot plant to validate the preliminary results and to test the assumptions about the Vapex process is under consideration. 15 refs., 6 tabs, 13 figs