to put money into the research that will shift our cars and
trucks off oil for good,” Obama said.
He said lower natural gas costs are a huge benefit to busi-
Ignores DOS analysis
nesses in the US, “so we should develop it even more.” He
added, “We’ve got to do it in a way that protects our air and
our water for our children and future generations. But we
can do that. We’ve got the technology to do it.”
But creating more jobs will need to take place without
compromising environmental safeguards, Obama said later
in his address at an Amazon.com fulfillment center. “Gut-
ting our environmental protection [is] not a jobs plan,” he
declared. “They keep on talking about this—an oil pipeline
coming down from Canada that’s estimated to create about
50 permanent jobs—that’s not a jobs plan.”
Obama used a similar estimate of Keystone XL’s job po-
tential in a July 27 New York Times article, which Trans-
Canada Corp., the project’s sponsor, and other supporters
disputed it on July 29 (OGJ Online, July 30, 2012). Others
responded to his continued use of the figure in his Chatta-
“On the Keystone XL pipeline, the president continues to ig-
nore his own administration’s analysis and demean the val-
ue of thousands of American jobs for those that badly need
them,” said Karen A. Harbert, president of the US Chamber
of Commerce’s Institute for 21st Century Energy.
Oil sands ramp-up boosts Cenovus second quarter
Cenovus Energy Inc., Calgary, said it has achieved first heavy
oil production last week from Phase E at its Christina Lake
thermal project in Alberta and that the company’s overall oil
sands production climbed 17% in the second quarter.
Combined oil sands production at Foster Creek and
Christina Lake averaged nearly 94,000 b/d net in the quarter, up 17% from a year ago, while total oil production averaged 171,000 b/d, a 10% increase.
Christina Lake output climbed 35% to more than 38,000
b/d, due mainly to ramp-up of Phase D and despite the first
full planned turnaround at the facility, and the company expects to bring on a new phase of production there in each of
the next several years.
Discovered bitumen initially in place has increased 66%
since 2009 to 93 billion bbl, reflecting the success of the
company’s stratigraphic drilling program in converting undiscovered resource inventory.
Natural gas production averaged 536 MMcfd, down 10%.
Cenovus’s conventional oil assets, including Pelican Lake,
were steady at more than 77,000 b/d. This slight increase
was partly due to successful well performance related to the
company’s current drilling program to develop tight oil opportunities in Alberta.
Work to expand infill drilling and the polymer flood pro-
gram at Pelican Lake is proceeding, resulting in average pro-
duction of nearly 24,000 b/d in the quarter, 7% higher than
the same period a year earlier.