January 2016

Special Report: LNG, NGL and Alternative Feedstocks

Fueling Alberta oil sands fleets with natural gas

Natural gas for diesel replacement is an excellent opportunity for mineable oil sands operations to realize considerable fuel savings.

Alberta has an abundant supply of natural gas that has historically been exported to US markets, among others. However, a fundamental shift in North America (NA), the shale revolution, has changed this. Horizontal drilling and hydraulic fracturing have allowed for the production of oil and gas from large, previously inaccessible shale deposits. This has resulted in a large increase in natural gas production in the US and correspondingly depressed prices. The largest of these gas deposits, the Marcellus basin, now services the Northeastern US. For Canadian gas producers, the shale revolution has significantly reduced export markets and forced production cuts. Despite a marked drop in product

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