RE: Canol Shale Economics Thanks OilEng
Looks pretty positive...I see you've landed on the IFR thread.
In regard to the infrastructure and environmental issues. I'm of the opinion the project(s) will trigger a modified EA level assessment for cumulative effects in the near term...not a full blown EIA for each project; that would be exceedingly punitive.
Again, in my opinion, the intensity of a given development application will could a liner correlation with the degree of environmental, cumulative effects and socioeconomic assessment required. I also believe the big play is on the west side of the Mackenzie River..logistics are a bit more of challenge and support infrastructure and logistics will require enhancement of barge or quasi-ferry operations. Waste reduction and management will be a challenge and it could be a significant portion of the socioeconomic assessment. A disposal zone will need to be identified in the next year or two and the tectonic regime in the area could be interesting in terms of zone isolation and maybe cap rock integrity. This in turn may affect your economic evaluation inputs.
And the big unknow...pipelines + permafrost = above or insulated below ground infrastructure. Caribou are adverse to liner disturbances or barriers....the feds have a real burr up there rears on those issues. Another costing factor? I suspect... yup.
If the volume of recoverable oil is there then this won't be a big barrier to development as the prize is worth it...if not it gets shelved until the NPV meets the target.
Keep posting the dialogue is good and the crazies haven't showed up yet.
Regards