How an Ontario Machine Shop Helps Gather Petroleum from Oil Sands

In an article posted in Canadian Manufacturing, The Canadian Press’ Lauren Krugel discusses how energy industry giant Husky Energy, Inc. is facing a steep slope in its currently-in-progress oilsands project in Northern Alberta:

“CALGARY—Husky Energy Inc. says the price tag for the first phase of its Sunrise oilsands project in northern Alberta is going up, with costs of its central plant coming in higher than expected.

Speaking at Husky’s investor day, executives provided no details on how much higher costs could climb, as a final estimate has not been finalized.

Sunrise Phase 1 was most recently projected to cost $2.7 billion.”


So, just how important could this project be? Canada ranks third among the world’s largest oil reserves within a country, and 97% (that’s 168 billion barrels of oil out of 173) of these reserves are in oil sands, deposits of bitumen that cannot be pumped out even with industrial equipment from a reliable machine shop from Ontario without diluting or heating it first. This project is an excellent means to capitalize on this crude oil resource.

How an Ontario Machine Shop Helps Gather Petroleum from Oil Sands

Baby Steps

The article further reports:

“Husky plans to tackle expansions to Sunrise through “bite-sized” phases and will be awarding smaller contracts to firms that provide equipment and services, said John Myer, senior vice-president of oilsands.

“We are making big projects smaller,” he said.

Technology will play an important role in lowering the cost of sustaining the Sunrise operations, said Myer.”

Indeed, Husky Energy recognizes the value of having high quality equipment and machinery not only in cost-effectiveness but in delivering optimum performance that will keep the Sunrise project operating to its fullest.

A local CNC machine shop like Central Machine and Marine can offer durable milling and mining equipment and components, like machines for facing tube sheet for heat exchangers, line boring machines, shearing tools and equipment, hydraulic presses, vertical milling machines, surface grinders and many more. The challenge for major resources industries like petrochemical companies lies in assessing which equipment will best work for them, and which provider can offer them the best deals.

With high-quality and reliable equipment, Canada’s oil sands projects should be able to efficiently extract, refine, and process the raw material into useable products. Husky Energy itself seeks to produce between 330,000 and 355,000 barrels per day this year, should the project push through.

(Source: Cost of Sunrise oilsands plant set to rise, Husky execs say, Canadian Manufacturing, June 4, 2014)