SOURCE: Zeus Development Corporation

October 13, 2006 15:37 ET

Oilsands Gasification Systems: C$4B Capex by 2012

HOUSTON, TX -- (MARKET WIRE) -- October 13, 2006 -- A crucial game-changing development in North America is the rapid exploitation of Western Canada's oilsands, the economic effects of which are already being felt. The Western Canadian sedimentary basin holds vast oilsands deposits that are economically recoverable at oil prices between $30/bbl and $40/bbl, and the use of gasification in the production of bituminous oilsands is poised for rapid expansion.

The EIA estimates that operators will produce some 3.5 million b/d of synthetic crude oil by 2025, up from 1.1 million b/d currently. Other estimates place the 2025 estimate closer to 5.0 million b/d.

"We anticipate that some C$4 billion will be spent on gasification systems over the next five years," said Tim Cornitius, editor, Syngas Refiner. "We also expect the winners of the technology race to subsequently enjoy revenues in the range of C$1-2 billion annually."

Five technology firms are aggressively pushing gasification technologies, and others are in the wings.

A primary factor that could accelerate gasification technology and infrastructure development is geopolitical instability and/or the desire of importing nations, like the United States, to achieve less dependence on foreign energy suppliers. War involving Iran, the Arabian Peninsula, Venezuela and/or Africa would motivate North American investors to accelerate development of indigenous coal and oilsands.

Barring these foregoing scenarios, however, several more immediate challenges, such as construction bottlenecks, labor shortages and constrained pipeline takeaway capacity, could decelerate the rate of gasification commercialization in the short to medium term.

Zeus Development Corporation, publisher of SYNGAS Refiner, has released an in-depth industry study on the subject titled "Oilsands Gasification Systems: C$4B Capex by 2012." The study examines all of the technological, economic, geopolitical and logistical drivers that will influence development of the Canadian oilsands and provides the reader with a wealth of information on the status of project developments, operators, technology providers, markets and more.

For more information, including the report introduction, and tables of contents, figures, and tables, visit:

www.SYNGASRefiner.com/oilsandsreport

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