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British Columbia’s Oil and Gas Resource Potential, Activities and Major Initiatives Teresa Morris , Resource Development and Geoscience Branch Ministry of Energy, Mines and Petroleum Resources Oil & Gas 101 Fort St. John, March 6, 2007. Presentation Key Topics. The BC Energy Plan
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British Columbia’s Oil and Gas Resource Potential, Activities and Major Initiatives Teresa Morris, Resource Development and Geoscience Branch Ministry of Energy, Mines and Petroleum Resources Oil & Gas 101Fort St. John, March 6, 2007
Presentation Key Topics • The BC Energy Plan • Oil and Gas Resource Potential • Activity Highlights • Oil and Gas Environmental Stewardship
The BC Energy Plan • BC Energy Plan • Extensive consultation with stakeholders, industry, other agencies • Builds on success of 2002 Energy Plan • Broader focus to include: • Conservation and Efficiency • Electricity • Alternative Energy • Electricity Choices • Skills Training and Labour • Oil and Gas
BC Energy Plan – Oil and Gas Highlights • Regulatory and fiscal competitiveness • Lead in Environmentally and Socially Responsible Oil & Gas Development • Eliminate all routine flaring by 2016, reduce by 50 per cent by 2011 • Enhance CO2 Sequestration • Best Coalbed Gas Practices in NA • Advance Development of Interior Basins
BC Energy Plan – Oil and Gas Highlights • Ensure offshore oil and gas is developed in a scientific/environmentally responsible manner • Expand Development of Conventional and Unconventional Gas • Enhance infrastructure and remove impediments • Grow oil and gas service sector
BC Energy Plan – Oil and Gas Highlights • Improve Oil and Gas Tenures • Develop Petroleum Registry • Improve relationships with communities, First Nations, local governments and landowners
Whitehorse 8.3 Tcf Gas 2.5 BBO Bowser Quesnel Nechako 9.5 Tcf Gas 5.1 BBO Offshore 41 Tcf Gas 9.8 BBO Fernie 0.4 Tcf Gas 88 MMBO Abundant Conventional Oil and Gas Potential 50+ Tcf Gas 0.265 BBO Northeast BC portion of Western CanadaSedimentary Basin
Undiscovered Conventional and Unconventional NEBC Conventional Interior Basins 50 Tcf 7% 18 Tcf 2% Total = 743 Tcf Offshore 42 Tcf 6% NEBC Tight Gas Coalbed Gas 300 Tcf 40% 84 Tcf 11% NEBC Shale Gas UC 250 Tcf 34% BC's Undiscovered Gas Potential (OGIP)
Annual wells drilled in British Columbia 1426 = record year (2005) Wells Commercial oil Boundary Lake 2006 1950 1990 1970
Discovered Gas in Place NEBC • Fort Nelson • Fort St. John
Ultimate Remaining Marketable Gas NEBC • Fort Nelson • Fort St. John
(Undiscovered OGIP) NEBC Resource Potential (EstimatedMarketable) • Conventional gas 39 Tcf 21.6 Tcf • Unconventional gas* • Tight gas 300 Tcf 15 Tcf • Shale gas 250 Tcf 5 Tcf • Coalbed gas 60 Tcf 4.2 Tcf (current to Nov., 2006)
Tight gas Jean Marie Play Cadomin Play Montney Play - Dawson Creek Now ~25% of BC Production • NEW Releases: • EMPR-NEB Resource Assessment for NEBC (April, 2006) • Play Atlas for NEBC (May, 2006)
Surficial Geology and Aggregate Mapping Program PROGRAM GOALS Regional assessment of aggregate resources and Quaternary geology in areas of oil and gas development Identify and evaluate, local, area specific aggregate resources e.g. Sierra-Yoyo-Desan Road, Royalty Credit Roads
Results and Successes • RESULTS TO DATE • Approximately 3000 sites visited in field • 12 gravel deposits defined • 45 gravel prospects identified • >400 sand and gravel showings documented • SUCCESSES TO DATE (since 2003) • >15 000 000 m3 sand and gravel defined • $13 million savings to the Province • e.g. SYD and Royalty Credit road projects
Oil and Gas Benefiting Communities • First Nation Consultation Agreements • Community Engagement Processes and NEEMAC • Fair Share Agreement • Service Sector Strategy • Education and Training Initiative • Roads Initiatives (HOGRSS, Royalty Credit Roads)
Oil & Gas Environmental Stewardship Program Two funding pathways: • Environmental Policy Program (EPP), and • Environmental Resource Information Project (ERIP)
Environmental Policy Program (EPP) • Identify and mitigate environmental issues related to oil and gas development • Provides opportunities for long-term environmentally responsible oil and gas development • Complements SCEK and other environmental initiatives
Oil and Gas EnvironmentalStewardship ProgramAnnual Report & Examples • Study of Northern BC Grasses for reclamation • Review of Terrain Hazard Assessment and Mapping in Northeast BC • Boreal Caribou Habitat Enhancement Trials • First Nations Special Sites Identification Link to the Report Website: http://www.em.gov.bc.ca/subwebs/oilandgas/pub/reports.htm
Environmental Resource Information Project (ERIP) A multi-year environmental baseline initiative that contributes to responsible development of oil and gas • Provides science-based information to increase understanding of oil and gas activities • Increase knowledge of local environment prior to project activities • Involves communities and First Nations – community participation, government-First Nations discussions, information sharing (open houses, workshops, and websites)
Environmental Resource Information Project (ERIP) Key Components: • A searchable, web-based database of existing environmental baseline • New environmental survey data forsix areas of the province with coalfields • Technical workshops and community outreach • Annual activity update is located on the ERIP website http://www.em.gov.bc.ca/subwebs/coalbedgas/ERIP/
Environmental Resource Information ProjectNortheast BC Example Contains ~500 environmental resource references for the Hudson’s Hope Coalfield area 1000 environmental resource references for the Peace River Coalfield area These include reports on: • Environmental impacts • Vegetation • Geology • Wildlife • Air and air quality • Water • Climate • Land use and planning
Other Environmental InitiativesCarbon Sequestration • CO2 capture and storage - disposal into: Depleted or abandoned oil/gas pools Deep saline aquifers Unmineable coals beds Abandoned gas storage facilities/salt caverns Deep ocean Mineral carbonation
Timing of CO2 Sequestration Opportunities inBritish Columbia Modified after Bachu (2006)
Conclusions • Conventional plays are the bulk of today’s supply, but unconventional gas is part of our future (tight, shale & coalbed gas) • Responsible resource management and development for the benefit of British Columbians • Energy Plans are our roadmaps • Ongoing & respectful dialogue between governments, First Nations, coexisting land users and interest groups
Ministry Contacts • Oil and Gas Environmental Stewardship Program – Teresa Morris (250) 953-3799 • Geoscience Information – Vic Levson (250) 952-0391 • Carbon Sequestration – Alf Hartling (250) 356-9792 • Coalbed Gas – Autumn Cousins (250) 953-3800 • Nechako Initiative – Jo Harris (250) 356-9822 • Offshore Oil and Gas – Bill Phelan (250) 952-0709