Many concerns have been raised recently that brings into question the vulnerability of global oil supply. From the upcoming sanctions on Iran, which are expected to make waves in the fourth quarter, to the drop in Venezuelan exports, much is left to be determined. With these challenges at the forefront of ensuring a steady supply of oil to markets around the world, one cannot help but raise a curious eyebrow at unconventional oil extraction methods, even if they previously had been brushed off.
A few years ago, a discussion on oil sands would have likely gotten sour – quickly and rightfully so. Oil extraction from sand deposits in Canada have led to major debates about widespread environmental damage such as toxic trailing ponds and greenhouse gas emissions in the country.
Today, however, the tides may be turning. In Asphalt Ridge, UT, Petroteq Energy Inc. utilizes a fully operational oil sand extraction facility. Capable of producing oil for as little as $28/bpd, the company’s proprietary Enhanced Oil Recovery (EOR) system extracts 99% of all hydrocarbons while releasing no greenhouse gases. Their patented liquid extraction system is environmentally safe and requires no high temperatures or pressures. Petrotreq is set to produce 1,000 bpd by the end of year and estimates 5,000 bpd by 2020. The company plans to hold a formal grand opening of the plant in September this year.
With oil sand deposits around the world, and current global events pointing oil prices in an upward direction, perhaps “heavy oil” should be more than a blip on the radar.