highlights of operations
Chevron has been finding, producing and refining crude oil and natural gas and delivering needed energy in Canada for more than 80 years. Chevron operates in Canada through Chevron Canada Limited and Chevron Canada Resources.
In Canada, Chevron is involved in Upstream exploration, development and production activities. Most of our Canadian crude oil production comes from the Hibernia Field, offshore Newfoundland and Labrador province. In the Northwest Territories, we have exploration interests and interests in discovered resources in the Beaufort Sea region. Chevron is a partner in the Athabasca Oil Sands Project (AOSP) in northern Alberta, which produces bitumen from oil sands. In Alberta, we are developing natural gas and liquids from shale in the Duvernay play. We also have interests in shale acreage and in a proposed liquefied natural gas (LNG) project in British Columbia province.
Chevron also serves the needs of motorists and sells aviation fuels and other refined products. In British Columbia, we operate the Burnaby Refinery.
Our company and employees are active in the communities where we operate, promoting many educational, cultural and environmental programs.
exploration and production
In Canada, Chevron’s exploration and production efforts include offshore crude oil projects in Atlantic Canada, oil sands projects in Alberta province, and natural gas and liquids from shales in western Canada. The company is also involved in the proposed Kitimat LNG project in northern British Columbia.
Net daily production in 2016 from Canadian operations was 33,000 barrels of crude oil, 55 million cubic feet of natural gas and 50,000 barrels of synthetic oil from oil sands.
Oil sands innovation
Oil sands, such as those found in northern Alberta, are a naturally occurring mixture of bitumen – a heavy, viscous form of crude oil mixed with water, sand and clay. Using hydroprocessing technology, bitumen can be refined to yield synthetic crude oil.
Chevron has a 20 percent nonoperated working interest in the AOSP near Fort McMurray, Alberta. In 2016, average net daily production increased to 50,000 barrels of synthetic oil. The Quest Project is designed to capture and store more than 1 million tons of carbon dioxide produced annually by bitumen processing at the AOSP.
Investing in Canada's energy future
Chevron holds a 50 percent interest in the proposed Kitimat LNG project. The project consists of the development of significant natural gas resources found in shale and tight rock formations in the Liard and Horn River basins in northeastern British Columbia; transportation of that gas across northern British Columbia via a third-party pipeline; and the proposed Pacific Trail Pipeline to the Kitimat LNG liquefaction facility at Bish Cove near Kitimat on Canada’s west coast. Chevron is the operator of the entire Kitimat LNG project.
The Kitimat LNG project is planned to include a two-train LNG facility and has a 10 million-metric-ton-per-year LNG export license from Canada’s National Energy Board. The project has First Nations partnerships that are unique in the Canadian energy industry. They include benefit agreements with the Haisla Nation for the LNG plant site and with all 16 First Nation bands along the Pacific Trail Pipeline route.
The Kitimat LNG project is currently focused on engaging in preconstruction engineering and design work, assessing capital cost reduction and optimization opportunities, appraising the Liard resource, securing LNG sales agreements, establishing a clear, stable and competitive fiscal framework with government, and working with First Nations and local communities.
Exploring for shale gas
Chevron holds 228,000 net acres (923 sq km) in the Duvernay Shale in Alberta and approximately 200,000 overlying acres (809 sq km) in the Montney tight rock formation. Chevron has a 70 percent-owned and operated interest in most of the Duvernay acreage after selling a 30 percent interest in the Duvernay Shale in 2014 and creating a joint partnership. Drilling continued during 2016 on an appraisal and land retention program. By early 2017, a total of 53 wells had been tied in to production facilities.
High-tech offshore Newfoundland and Labrador
Off the east coast of Newfoundland and Labrador, Chevron has a 26.9 percent nonoperated working interest in the Hibernia Field that includes two key reservoirs, the Hibernia and Ben Nevis Avalon formations. Chevron has a 23.8 percent nonoperated working interest in the unitized Hibernia Southern Extension areas of the Hibernia Field. In 2016, infill drilling continued, and net daily crude oil production was 29,000 barrels.
Cutting-edge, cost-effective technologies are employed at the Hibernia Field. The production platform is specially built to withstand blows from large icebergs. The development includes wells that reach up to 4.5 miles (7.2 km) in length and are drilled to a depth of almost 13,000 feet (3,960 m).
Southeast of Hibernia lies Hebron, a heavy oil field in which Chevron holds a 29.6 percent nonoperated working interest. The Hebron Field development includes a freestanding concrete gravity-based structure with integrated drilling and production facilities and a design capacity of 150,000 barrels of crude oil per day. The mating of the integrated topside with the gravity-based structure was successfully executed in 2016. The platform is scheduled to be towed to the field in the first half of 2017, and first oil is expected in the second half of 2017.
In the Flemish Pass Basin, Chevron holds a 40 percent nonoperated working interest in exploration rights for two blocks totaling 321,000 net acres (1,300 sq km). A 3-D seismic survey was completed on these blocks. In addition, the company holds a 35 percent-owned and operated interest in Flemish Pass Basin Block EL 1138, with 237,000 net acres (959 sq km).
In Calgary, Alberta, the Chevron Arctic Center is home base for some of the world’s foremost experts in Arctic exploration and development.
retail, commercial and lubricant sales
With an average of more than 80,000 customer visits per day to our retail locations, Chevron is British Columbia’s market leader in transportation fuels. We are the largest gasoline and convenience store retailer in the province by market share, and our commercial and industrial cardlocks make us the top commercial fuel provider in the province as well. Our network includes:
- 179 Chevron® service stations.
- 136 Town Pantry® convenience stores.
- 24 White Spot Triple O’s™ quick-serve restaurants.
- 38 commercial cardlock truck stops in British Columbia and three in Alberta.
- Three commercial marine fuel facilities.
- 10 lubricant distributors located across Canada.
Chevron also supplies between 30 percent and 40 percent of the jet fuel used at Vancouver International Airport.
Chevron markets and sells Havoline®, Delo® and Techron® brand lubricants, coolants and fuel additives to consumer, commercial and industrial customers through distributors.
Chevron’s Burnaby Refinery was built in 1935 on the shores of Burrard Inlet, near Vancouver. The 55,000-barrel-per-day facility is the only refinery on the west coast of British Columbia. It meets 25 percent of the province’s demand for transportation fuel.
The refinery makes petroleum products from Canadian crude oil transported by pipeline, rail and truck. Conventional and synthetic crude oil is processed into propane, gasoline, jet fuel, distillate and asphalt.
The refinery provides jobs for approximately 400 employees and contractors.
In April 2017, we announced that we signed an agreement to sell refining and marketing assets in British Columbia and Alberta.
in the community
Chevron supports the communities where we live and work and contributes to a wide range of programs and organizations that focus on health, education, economic development, Aboriginal initiatives and community capacity building. We have worked with some of our partners for more than 20 years.
Chevron sponsors numerous programs and organizations that range from teaching leadership skills to Aboriginal and community leaders to addressing early childhood literacy and youth homelessness.
Chevron sponsors the award-winning program, which gives children and their teachers a weeklong hands-on learning experience tied directly to curriculum objectives. Programs take place at a zoo, a historical park, a science center, a conservation area and two museums. Chevron sponsors six Open Minds sites: four in Calgary and one in Fort McMurray, Alberta, and another in St. John’s, Newfoundland and Labrador.
Chevron contributes to programs that help train and equip people and organizations for success. For example, the company has provided $1 million since 2005 to Stella’s Circle in Newfoundland and Labrador. The funding is used to provide training and work opportunities to individuals with complex challenges.
Chevron supports the HR MacMillan Space Centre’s STARLAB portable planetarium. Through Chevron’s support, STARLAB has traveled to northern British Columbia communities, helping to engage students, educators and communities in hands-on learning in science, technology, engineering and math (STEM). Astronomers project the local night sky and traditional Aboriginal cultural images inside the planetarium, helping students connect to their area and culture.
Chevron employees are directly involved in community engagement. The company supports employees and retirees who volunteer for company-organized initiatives as well as for projects they work on in their own time. In addition, Chevron offers time off for volunteering, matching grants and grants for accumulated volunteer time.
In 2010, Chevron was named Outstanding Philanthropist of the Year for Newfoundland and Labrador by the Newfoundland and Labrador Chapter of the Association of Fundraising Professionals, a prominent professional organization in that province.
In 2015, Chevron added the University of Calgary to the company’s University Partnerships and Association Relations program – the second Canadian university to join. Chevron and the Natural Sciences and Engineering Research Council of Canada (NSERC) are each investing $900,000 over five years to fund the university’s NSERC/Chevron Industrial Research Chair in Microseismic System Dynamics. The aims of the chair match well with Chevron’s technology research into the increased use of microseismic data at developments such as Chevron’s unconventional shale resources in the Liard and Horn River Basins in northeastern British Columbia and the Duvernay play in west-central Alberta.
Since 2013, Chevron’s Fuel Your School program has provided funding for more than 1,500 creative STEM projects that have benefited more than 53,700 students from 230 public schools in British Columbia. Chevron has contributed more than $1.8 million toward innovative classroom STEM materials, such as 3-D printers, robotics equipment, construction kits, tablets and circuit boards.
record of achievement
In 1935, Chevron opened a refinery in Burnaby, British Columbia, and began selling branded fuel and lubricants in British Columbia and Alberta. During World War II, we increased our production and began supplying aviation fuel to Canada.
In 1954, Chevron produced an average of 11,000 barrels of oil per day. Production increased to 35,000 barrels per day in 1976. Major upgrades to the refinery’s crude unit were completed in the 1980s, and in response to the growing demand for unleaded fuels, a new alkylation unit was built. A new effluent treatment plant opened in 1998 to improve the quality of the refinery’s discharged water.
By 2001, the refinery’s plant capacity had risen to 52,000 barrels per day. In 2005, a program to reduce sulfur oxide emissions was started in collaboration with air regulators and the local community. A new cooling tower was commissioned as part of the refinery’s largest capital expenditure plan at the time. In 2008, the refinery’s safety flaring system and critical electrical infrastructure were upgraded.
In 2009, modifications were completed at the Burnaby Refinery and distribution terminal to meet new provincial biofuels regulations that went into effect in 2010.
Texaco® products have been sold in Canada for 50 years.
Beginning in 1989, Texaco marketing efforts in Canada concentrated on the sale of lubricants. In 2002, as a result of the Chevron-Texaco merger, the company became a national marketer of Texaco and Chevron® lubricants.
exploring for energy
Chevron drilled its first successful exploration wells in southern Alberta in 1939 and 1940 and began producing crude oil in 1941.
Discoveries at Princess, Acheson, Homeglen-Rimbey and Nevis fields in the 1940s and 1950s earned Chevron recognition in the Canadian petroleum industry for our innovation and technical expertise. Next came the Mitsue and Kaybob discoveries in the 1960s, followed by Hibernia in 1979. The natural gas field in Fort Liard, Northwest Territories, was discovered in the 1990s.
In 2008, Chevron successfully led efforts to reach binding agreements with the government of Newfoundland and Labrador to enable the Hebron offshore heavy oil project to proceed.
In 2013, Chevron celebrated its 75th anniversary of Upstream operations in Canada, marking a legacy of exploration success, innovation, growth and community support.
500 Fifth Ave. S.W.
Calgary, AB T2P 0L7
Atlantic Canada Office
Suite 700, 215 Water St.
St. John’s, NL
Chevron Canada Limited
1200-1050 West Pender St.
Vancouver, BC V6E 3T4
355 North Willingdon Ave.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Website contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward- looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the impact of the 2017 U.S. tax legislation on the company's future results; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 19 through 22 of Chevron’s 2017 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.