The world demand for oil, particularly heavy oil, has Schlumberger increasing its Edmonton presence.
The move comes approximately 21/2 years after the global oilfield services provider opened a state-of-the-art reservoir fluids centre in the provincial capital.
Schlumberger will now double the size of its Edmonton operation - going from 30,000 sq. ft. to 60,000 sq. ft. - as it takes its DBR Technology Centre to the next level.
Citing DBR's research work as an important growth area, Schlumberger says the new addition is required to accommodate the technology development and research needs that can't be met by the existing facility.
"The new expansion of this centre enables us to build on our research capabilities worldwide," says Derek Normore, president of Schlumberger Canada Ltd. "This commitment, which sets us apart from our competitors, will focus on the development of heavy oil reservoirs that are estimated to represent an increasing share of oil production as the industry seeks to maintain or boost overall production."
According to DBR Technology Centre manager Moin Muhammad, the ability to produce heavy oil from Alberta's tarsands must move forward, as oil demand is not expected to slow down.
"One of DBR's focus areas is heavy oil and the new centre will continue to focus on the applications for (that)," says Muhammad. "Because there is little reason to believe that demand is going to drop, this is something that has to be sustained, at least for the foreseeable future."
" ... Globally we have about six trillion barrels of heavy oil; however, economically producing these heavy oil reserves is technologically very challenging. Industry-wide research efforts are needed to unlock such reservoirs to support the oil and gas demand of the future."
Muhammad notes that current projected world oil demand for 2007 is 86.4 million barrels per day. "When numbers get this large, they become difficult to put into context," he says. "When they are broken down they can become startling - 86.4 million barrels per day works out to 1,000 barrels of oil per second.
That is just over 41/2 average tanker trucks every second of every day.
Over the past hour, the world has consumed about 3.6 million barrels of oil."
Located in the southside Edmonton Research Park (ERP), the expansion program's first 30,000-sq.-ft. phase will be constructed over a period of one to two years and create 40 to 50 new jobs.
Another 100 jobs are expected to be generated during the construction phase. If needed, a second building will be built within 10 years.
Meanwhile, Edmonton Economic Development Corp. (EEDC) had a hand in getting Schlumberger to boost its presence locally. The City of Edmonton is transferring two lots of land, totalling three hectares, at market value to ERP site manager EEDC, which in turn will lease the land to Schlumberger Canada.
"This agreement is the result of extensive negotiations by EEDC with Schlumberger to expand the company's research and development centre," says EEDC president and CEO Ron Gilbertson.
"This new land purchase is another important step in helping grow Schlumberger's global market presence in Edmonton ... while contributing to Edmonton's reputation as a centre of research excellence and technological expertise."
Gilbertson adds that Schlumberger is recognized as a world leaders in the oil and gas industry. "They already have five major research centres worldwide and their new building here will support the growing research needs of their technology centre already well-established at the Edmonton Research Park," he says. "Here we have a major global player committing to Edmonton to expand their research and innovation needs - it doesn't happen everyday."
Most of the technologies developed at the Edmonton site will be for worldwide application and therefore driven by the state of the global oil and gas industry rather than the local Edmonton economy. With Schlumberger continuing to develop advanced technology that helps oil companies to replace and produce reserves, business is expected to grow as demand for oil and gas continues to increase.
Schlumberger supplies technology, information services and integrated project management to optimize reservoir performance for the oil and gas sector. It employs more than 76,000 people in more than 80 countries. In 2006, Schlumberger revenue was US$19.23 billion.
The DBR Technology Centre is a Schlumberger R&D facility in the area of reservoir fluids research, where work is being carried out on nearly 10 projects for five of the company's global business segments.
The centre also has relationships with a number of universities involved in fluids research and is closely connected to other Schlumberger research and technology centres in other parts of the world, including the United States, United Kingdom, Russia, Saudi Arabia, Japan, Norway, France and others.
The DBR Group of Companies was acquired by Schlumberger in April 2002.
DB Robinson & Associates Ltd. was founded in 1980 by Donald Robinson, professor emeritus of chemical engineering at the University of Alberta, with a mandate to provide quality phase behaviour and fluid property technology and information to the oil, gas and petrochemical industries.
(Laura Severs can be reached at laura@businessedge.ca)
