Released on September 29, 2004
The Petroleum Technology Research Centre (PTRC), located in the Regina Research Park, is using an investment from the governments of Canada and Saskatchewan to build a scale physical model of Vapex (Vapor Extraction), a new, environmentally friendly oil recovery technology that prolongs the life of heavy oil reserves.The Honourable Ralph Goodale, Minister of Finance, on behalf of the Honourable Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport), and Saskatchewan Industry and Resources Minister Eric Cline, announced a total of $750,000 in matching funds for the research project through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA).
"Vapex technology will further enhance the strong performance of Saskatchewan's oil industry," Goodale said. "The Government of Canada is committed to supporting research that explores path-breaking technologies that contribute to building a 21st century economy."
"The PTRC is strengthening Saskatchewan's oil and gas sector by working with industry to develop and improve technologies like Vapex that increase our competitiveness and productivity," Cline said. "Significant economic, social and environmental benefits will result from the PTRC's work on this project."
Vapex is a new method of extracting oil from existing horizontal wells to substantially increase oil production. It injects solvent gases into heavy oil reservoirs to dissolve viscous or 'sticky' oil so that it can be pumped to the surface. Since it does not use heat to recover the oil, it has the potential to reduce greenhouse gas emissions.
The WEPA funding will go toward designing, purchasing and installing a 3-D scale model that will allow researchers to test the new technology and develop it more quickly for commercial applications.
"Vapex research is a major focus for the PTRC, as it represents a significant advancement in Enhanced Oil Recovery technology that will assist our producers while reducing harm to the environment," PTRC Executive Director Michael Monea said. "This funding will allow us to press forward with this research very quickly, helping to achieve a green economy for Saskatchewan and Canada."
In September 2003, the governments of Canada and Saskatchewan entered into the new four-year, $50 million Canada-Saskatchewan Western Economic Partnership Agreement (WEPA). The agreement focuses on increasing the competitiveness and productivity of the Saskatchewan economy.
Funding for this project was provided for in the March 2004 federal budget and the March 2004 provincial budget.
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For More Information, Contact:
| Joanne Mysak Western Economic Diversification Canada Saskatoon Phone: (306) 975-5942 | Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 |
Michael Monea Petroleum Technology Research Centre Regina Phone: (306) 787-8290 |