Is Oil Sands Production Losing Steam?

Soaring natural gas prices could create a problem for Canada’s gas-dependant oil sands industry, such that even a modest improvement in how the gas is metered can have a dramatic impact on costs.

With estimated reserves second only to Saudi Arabia, this region in the Canadian province of Alberta is receiving even greater attention from the United States and its business media, including the Wall Street Journal and CNBC.

In-situ oil sands extraction is expensive, and requires a lot of steam. To ensure optimal gas flow and steam temperature, mechanical flow meters known as orifice plates or ‘differential pressure’ meters have been the industry standard for years. But this type of meter inhibits the gas flow and is powered by electricity – likely not the safest option when dealing with a flammable product.

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