Northern Alberta, where Statoil’s Leismer Demonstration Project is being built, contains the world’s largest known reserves of oil-bearing sands. Statoil is developing this valuable resource in close consultation with local communities and environmental groups.

The surrounding area is unique. Once completely covered by glaciers, the landscape remains largely undeveloped. There are only a few paved roads and nearly all modern infrastructure has been built by oil companies. Only 2,500 people live within a radius of 200km, mostly in small rural settlements.

The process of oil sands extraction presents a series of technological challenges. To overcome this, Statoil has chosen a technique known as steam assisted gravity drainage (SAGD). Using this method, the impact on the landscape is far less than for example conventional mining operations.

The project promises to boost the local economy and provide jobs for people living in the area. To pave the way, Statoil is cooperating with the area’s Portage College to provide training for those who want to join the industry. Along with regional authorities, we are also supporting a local opportunity centre where local suppliers can compete for contracts.

The presence of oil inevitably brings changes, but at every stage we are talking with local stakeholders to ensure that development takes place in alignment/line with their needs.