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Abstract
Canada's oil-sands producers have been hit with dizzying drops in commodity prices and spinning credit markets, and they have reacted swiftly. Yet, operators of in-situ projects are standing pat, largely because their ventures don't require vast bankrolls. More akin to conventional oil Devon Energy Corp, the only US-based independent with a major stake in Canada's oil sands, remains all-in at its Jackfish and Jackfish 2 steam-assisted gravity drainage (SAGD) projects. SAGD projects have tiny footprints in comparison -- Jackfish occupies a 400-by-800-meter site. At full lease development, Jackfish will disturb less than 5% of the surface to produce its entire 300-million-barrel resource. One feature of Jackfish that delivers environmental benefit is its emphasis on heat integration. To date, performance at Jackfish compares very favorably to other SAGD projects. Jackfish is a high-pressure project. It's a game that Devon is willing to play, and it's already holding a strong hand.