Oil patch to export expertise to China
University of Calgary project
It may yet be a while before Canadian crude and natural gas reach Chinese shores, but the oil patch’s technical expertise is being exported as of this week. On Thursday, the University of Calgary, in collaboration with Kerui Group, a private Chinese oil and gas company, is opening a research, education and training institute in Beijing focusing on unconventional oil and gas resources.
“We can help position Canada as an energy innovator, not only in China but on the world stage, and that’s really important,” Elizabeth Cannon, president and vice-chancellor of the University of Calgary said in an interview last week before flying to Beijing for the event.
The $11.25-million, 4,000-square-metre centre, funded by the Kerui Group, will feature six laboratories focused on petrophysics, geochemistry, microstructure, rock mechanics, formation stimulation, and reservoir simulation. Research will range from regulatory framework, policy development and engagement to horizontal drilling and hydraulic fracturing.
It’s the first such facility in a Chinese university, according to John Chen, director of the new facility and professor of chemical and petroleum engineering in the Schulich School of Engineering.
The initiative’s initial priority will be on unconventional shale gas development given that China has had little success in tapping its shale gas reserves, estimated to be the largest in the world at 1,115 trillion cubic feet.
Despite efforts by oil majors and state-owned enterprises, the country seems far from achieving its target of producing 30 billion cubic metres of gas per day by 2020 from its current level of 1.5 billion cubic metres.
Ms. Cannon believes gaining expertise on Chinese geology would be invaluable for Canada.
“The geology, rock formation and hence technological needs in China are different than there are in Canada, so this will be a new frontier to look at some of the unconventional opportunities and challenges in China and look to how we can build on our expertise.”
Although China has sunk billions of dollars in Canada’s energy sector, ties between the two countries have been strained at times.
Restrictive rules by Ottawa on oilsands ownership and Chinese disappointment with some of their investments in Alberta has turned the relationship lukewarm.
Ms. Cannon believes the university can pave the way for stronger energy ties, especially as it plans to invite Canadian and Chinese companies to develop new research initiatives.
“We can help foster those relationships and ultimately provide opportunities for Canadian industry in China.”
The initiative to help China unlock and raise its shale gas production does not conflict with Canada’s pursuit to emerge as major supplier to Asia, Ms. Cannon says.
“I don’t think so. The nature of the university is to help push the envelope of knowledge and train people — that’s what this is all about. The benefits back to Canada will be at least equal in terms of benefit to China.”
The university has signed more than 25 separate research and education agreements with Chinese universities, and expects to take that figure to 45 by the end of the year.
The university’s energy initiative would also help Canada stand out from the crush of competitors jostling to get a
We can help position Canada as an energy innovator
piece of China’s lucrative energy sector.
The Beijing site is part of the university’s new global research initiative for unconventional oil and gas, with Mexico planned as the next centre.
“We just signed an MoU (memorandum of understanding) with the Mexican Ambassador to Canada,” Ms. Cannon said, noting that a Mexican centre could open within two years. “They are very eager to look at the model we have in Beijing and discuss what would be appropriate to link with Mexican universities and industry to help in their challenges.”
The university also plans to export the Beijing model to several Middle East countries including the United Arab Emirates, Qatar and Israel, which is keen to develop its promising offshore natural gas reserves.
The university also plans to develop research institutes in the U.S., Germany and Tanzania.