Alberta Energy

The Alsands Project Group was a nine-company consortium proposing to build Alberta’s third oil sands mining plant. The group’s intention was to invest about $5 billion (1978 dollars) to build a 140,000-barrel-a-day oil sands plant by 1987 which would represent over 10% of Canada’s oil production. The project group also proposed to build a new town, about 100 kilometres north of Fort McMurray, to accommodate their workers. The Alsands consortium was managed by Shell Canada Resources limited with a 25% interest. The other members were Shell Explorer Limited (20%), Amoco Canada Petroleum Company Limited (10%), Chevron Standard Limited (8%), Dome Petroleum Limited (4%), Gulf Canada Limited (8%), Hudson’s Bay Oil and Gas Company Limited (8%), Petro-Canada, through the acquisition of Pacific Petroleums Limited (9%) and Petrofina Limited (8%). The consortium’s application was considered at an Energy Resources Conservation Board hearing held in Fort McMurray during June and July, 1979. The project was initially approved subject to certain requirements respecting operational details, however delays due to disagreements with the federal and provincial governments on taxes and royalties, the National Energy Program introduced by the Liberal government in 1980, and escalating costs caused the project to collapse in April, 1982.