Oil sands and Conventional Energy Projects
      Exploration   and   production   of   energy   accounts   for   6.2%   of   Canada's   GDP.    This   industry   faces significant   transportation   challenges   given   where   the   reserves   occur.    Below   is   a   summary   of   the importance the energy industry has to Canada as a primary economic driver:
Capital Spending:
Conventional
$26.8 billion
Oil Sands
$6.2 billion
Total
$33.0 billion
Wells Drilled
Oil:
4,526
Natural Gas:
15,126
Total (including Dry & Service):
24,874
Reserves at  2004 Year End:
Conventional Oil:
4,354 million barrels
Surface Mining (Integrated Synthetic):
5,294 million barrels
In-situ bitumen:
2,082 million barrels
Natural Gas:
56.5 trillion cubic feet
Production:
Conventional Oil:
1,410,000 barrels / day
Surface Mining Integrated Synthetic:
465,000 barrels / day
In-situ bitumen:
532,000 barrels / day
Pentanes +/condensate:
163,000 barrels / day
Crude oil & equivalent:
2,570,000 barrels / day
Natural Gas:
17.0 billion    cubic    feet    / day
Governments:
Royalties, Bonuses, Fees & Income Taxes
$18.0 billion
Employment:
Direct and Indirect
365,000
Total Employment Impact   
500,000
Exports:
Crude Oil:
1,611,000 barrels / day
Natural Gas:
9.7 billion    cubic    feet    / day
       The   three   major   activities   within   this   sector   are   oil   sands,   conventional   production   and pipelines.   Each   of   these   activities   gives   rise   to   major   transportation   challenges.   Sometimes   the challenge   relates   to   the   remoteness   of   the   location   or   its   inaccessibility   due   to   ground   condition. This   is   the   case   with   the   northern   boreal   areas   where   it   is   only   possible   to   move   drilling equipment   during   the   winter   season   when   the   muskeg   is   frozen.   The   oil   sands   face   a   different challenge.   Large   invisible   loads   must   be   moved   to   the   constructions   sites   at   great   expense   and disruption given that there is only one road and one rail line from the south to Fort McMurray.
Oil sands Development
       The   development   of   the   Alberta   Oilsands   is   a   mega   project   on   a   grand   scale.   The   Alberta Government   estimates   that   new   and   sustaining   capital   requirements   to   produce   this   resource may reach $93.5 billion over its expected 30-year life. The Canadian
       Association   of   Petroleum   Producers   (CAPP)   estimates   that   the   Oilsands   will   account   for   up 15% of the world's oil crude oil reserves.
Oil   sands   production   has   surpassed   one   million   barrels   per   day   and   with   175   billion   barrels   of reserves   in   the   ground   it   is   one   of   the   few   basins   in   the   world   with   growing   production. Companies   expect   to   produce   2.9   million   barrels   per   day   of   bitumen   and   synthetic   light   crude oil   by   2015.   To   appreciate   the   immense   scope   of   the   second   largest   petroleum   deposits   in   the world   after   Saudi   Arabia,   consider   that   at   current   production   rates   it   would   take   over   400   years just   to   deplete   the   reserves   at   existing   oil   sands   operations.   Overall,   Canada   has   15   per   cent   of the   world's   crude   oil   reserves,   produces   2.5   million   barrels   per   day,   and   is   the   largest   and   most reliable foreign supplier to the United States.
CAPP 2004
       A   report   issued   by   the   Alberta   Economic   Development   in   the   spring   2005   provides   a   very comprehensive overview of the status of the individual projects.
       The   Oilsands   are   located   in   Fort   McMurray,   Alberta.   Most   of   the   major   equipment   is   imported and   much   of   the   construction   is   being   done   off   site   and   transported   to   the   projects   in   modules from    Edmonton.    Highway    63    is    a    two-lane    highway    and    provides    the    only    road    to    Fort McMurray.   This   highway   is   often   congested   because   large   loads   must   be   moved   at   slow   speeds along its 457 kilometre length.
    Many   of   the   world's   largest   energy   companies   have   projects   that   are   operational,   under construction   or   planned.   Included   are   companies   such   as   Imperial   Oil   (Exxon),   Shell,   Petro Canada, EnCana, Nexen, Suncor, Syncrude, etc.
       In   addition   to   the   movement   of   large   industrial   equipment,   there   is   a   need   to   move   other types   of   construction   and   extraction   related   material.   The   objective   in   the   mining   operation   is   to move   as   much   material   as   possible.   The   limit   to   the   size   of   the   mine   trucks   is   the   largest   tire that   can   be   transport   to   the   site.   Most   of   the   other   truck   parts   can   be   disassembled   into   pieces that   to   be   moved   by   road   or   rail.   However,   a   tire,   by   definition   is   an   indivisible   load.   If   the mines   want   to   build   larger   trucks   they   need   to   transport   the   tires   to   the   mine.   At   Suncor,   there are   30   trucks,   each   has   6   tires   and   a   tire   lasts   about   11   months.   They   need   about   180   tires   per year.   An   individual   tire   weights   about   8,000   lbs.   They   spend   about   $8   million   per   year   on   tires alone.   If   hybrids   could   transport   larger   tires,   the   potential   benefits   to   the   mines   would   be   very significant.
       On   a   daily   basis,   over   300   hundred   bus   loads   of   workers   are   transported   from   the   city   of   Fort McMurray   to   the   project   sites.   This   is   a   time   consuming   and   costly   exercise   given   the   limited road   capacity   and   bridges   in   the   area.   The   furthest   site   is   125   km,   one-way,   from   Edmonton. An option for moving passengers by hybrid air vehicle could be well received.
       In   summary,   hybrid   air   vehicle   could   be   used   for   at   least   the   following   missions   in   the energy industry:
             Movement   of   larger   industrial   equipment   from   ports   or   inland   manufacturing   facilities to the project construction sites.
             Movement   of   large   indivisible   loads   that   have   clearance   that   exceed   the   road   and/or rail allowances.
     Movement of people and supplies from the rail head in Fort McMurray to site.
       The   Oilsands   projects   are   of   a   scale   and   duration   (30+   years   of   forecasted   construction) that   the   transportations   requirements   stemming   from   this   industrial   activity   alone   could justify   the   development   of   a   fleet   of   hybrid   air   vehicle   of   varying   capacities   and   mission requirements. This may be a killer application this industry has sought for so long.
Conventional Exploration and Production
         Energy    exploration    and    production    is    distributed    over    a    broad    geographic    area.    This necessitates    transporting    significant    volumes    of    oilfield    related    equipment,    supplies    and construction   materials   and   equipment.   In   the   southern   areas,   roads   and   truck   transportation provide   adequate   options   for   moving   most   products.   However   in   the   north,   the   two   most significant   issues   are   the   lack   of   roads   in   some   areas   and   inaccessibility   of   these   roads   during   a significant   portion   of   the   year   due   to   the   adequacy   of   the   roads   and   soft   conditions   during break-up   that   necessitate   road   bans.   These   factors   contribute   to   seasonality   and   peaking   issues that result in increased direct costs or opportunity costs.
       A   case   in   point,   is   seasonally   drilling   activity.   The   recent   surge   in   energy   prices   has   put further   pressures   on   the   energy   industry   to   explore   and   produce   new   wells.   As   the   oil   extraction industry   drains   the   easy   to   access   sedimentary   basins,   new   capacity   is   being   sought   in   the more   logistically   challenging   Arctic   climate   zones.   In   much   of   northern   Canada   and   Alaska,   local ground   conditions   severely   inhibit   oil   and   gas   drilling   activity.   Oil   drilling   in   areas   with   muskeg or   marshy   conditions   requires   the   ground   to   be   frozen   before   heavy   drilling   rig   equipment   can be    transported.    During    the    remainder    of    the    year,    impassable    mud    and    environmental restrictions prohibit surface transport to these sites.
Skyfreighter Canada Ltd
Oil sands and Conventional Energy Projects
      Exploration   and   production   of   energy   accounts   for   6.2%   of Canada's   GDP.    This   industry   faces   significant   transportation challenges    given    where    the    reserves    occur.     Below    is    a summary    of    the    importance    the    energy    industry    has    to Canada as a primary economic driver:
Capital Spending:
Conventional
$26.8 billion
Oil Sands
$6.2 billion
Total
$33.0 billion
Wells Drilled
Oil:
4,526
Natural Gas:
15,126
Total (including Dry & Service):
24,874
Reserves at  2004 Year End:
Conventional Oil:
4,354 million barrels
Surface Mining (Integrated Synthetic):
5,294 million barrels
In-situ bitumen:
2,082 million barrels
Natural Gas:
56.5 trillion cubic feet
Production:
Conventional Oil:
1,410,000 barrels / day
Surface Mining Integrated Synthetic:
465,000 barrels / day
In-situ bitumen:
532,000 barrels / day
Pentanes +/condensate:
163,000 barrels / day
Crude oil & equivalent:
2,570,000 barrels / day
Natural Gas:
17.0 billion cubic feet / day
Governments:
Royalties, Bonuses, Fees & Income Taxes
$18.0 billion
Employment:
Direct and Indirect
365,000
Total Employment Impact   
500,000
Exports:
Crude Oil:
1,611,000 barrels / day
Natural Gas:
9.7 billion cubic feet / day
       The   three   major   activities   within   this   sector   are   oil   sands, conventional   production   and   pipelines.   Each   of   these   activities gives   rise   to   major   transportation   challenges.   Sometimes   the challenge   relates   to   the   remoteness   of   the   location   or   its inaccessibility   due   to   ground   condition.   This   is   the   case   with the   northern   boreal   areas   where   it   is   only   possible   to   move drilling   equipment   during   the   winter   season   when   the   muskeg is   frozen.   The   oil   sands   face   a   different   challenge.   Large invisible   loads   must   be   moved   to   the   constructions   sites   at great   expense   and   disruption   given   that   there   is   only   one road and one rail line from the south to Fort McMurray.
Oil sands Development
       The   development   of   the   Alberta   Oilsands   is   a   mega   project on   a   grand   scale.   The   Alberta   Government   estimates   that new    and    sustaining    capital    requirements    to    produce    this resource   may   reach   $93.5   billion   over   its   expected   30-year life. The Canadian
       Association   of   Petroleum   Producers   (CAPP)   estimates   that the   Oilsands   will   account   for   up   15%   of   the   world's   oil   crude oil reserves.
Oil   sands   production   has   surpassed   one   million   barrels   per day   and   with   175   billion   barrels   of   reserves   in   the   ground   it   is one   of   the   few   basins   in   the   world   with   growing   production. Companies   expect   to   produce   2.9   million   barrels   per   day   of bitumen   and   synthetic   light   crude   oil   by   2015.   To   appreciate the   immense   scope   of   the   second   largest   petroleum   deposits in    the    world    after    Saudi    Arabia,    consider    that    at    current production   rates   it   would   take   over   400   years   just   to   deplete the   reserves   at   existing   oil   sands   operations.   Overall,   Canada has   15   per   cent   of   the   world's   crude   oil   reserves,   produces 2.5    million    barrels    per    day,    and    is    the    largest    and    most reliable foreign supplier to the United States.
CAPP 2004
       A   report   issued   by   the   Alberta   Economic   Development   in the   spring   2005   provides   a   very   comprehensive   overview   of the status of the individual projects.
       The   Oilsands   are   located   in   Fort   McMurray,   Alberta.   Most   of the     major     equipment     is     imported     and     much     of     the construction   is   being   done   off   site   and   transported   to   the projects   in   modules   from   Edmonton.   Highway   63   is   a   two- lane   highway   and   provides   the   only   road   to   Fort   McMurray. This   highway   is   often   congested   because   large   loads   must   be moved at slow speeds along its 457 kilometre length.
    Many   of   the   world's   largest   energy   companies   have   projects that   are   operational,   under   construction   or   planned.   Included are    companies    such    as    Imperial    Oil    (Exxon),    Shell,    Petro Canada, EnCana, Nexen, Suncor, Syncrude, etc.
       In   addition   to   the   movement   of   large   industrial   equipment, there   is   a   need   to   move   other   types   of   construction   and extraction    related    material.    The    objective    in    the    mining operation   is   to   move   as   much   material   as   possible.   The   limit to   the   size   of   the   mine   trucks   is   the   largest   tire   that   can   be transport   to   the   site.   Most   of   the   other   truck   parts   can   be disassembled   into   pieces   that   to   be   moved   by   road   or   rail. However,   a   tire,   by   definition   is   an   indivisible   load.   If   the mines   want   to   build   larger   trucks   they   need   to   transport   the tires   to   the   mine.   At   Suncor,   there   are   30   trucks,   each   has   6 tires   and   a   tire   lasts   about   11   months.   They   need   about   180 tires   per   year.   An   individual   tire   weights   about   8,000   lbs. They    spend    about    $8    million    per    year    on    tires    alone.    If hybrids   could   transport   larger   tires,   the   potential   benefits   to the mines would be very significant.
       On   a   daily   basis,   over   300   hundred   bus   loads   of   workers are   transported   from   the   city   of   Fort   McMurray   to   the   project sites.   This   is   a   time   consuming   and   costly   exercise   given   the limited   road   capacity   and   bridges   in   the   area.   The   furthest site   is   125   km,   one-way,   from   Edmonton.   An   option   for moving    passengers    by    hybrid    air    vehicle    could    be    well received.
       In   summary,   hybrid   air   vehicle   could   be   used   for   at   least the following missions in the energy industry:
             Movement   of   larger   industrial   equipment   from   ports   or inland   manufacturing   facilities   to   the   project   construction sites.
             Movement   of   large   indivisible   loads   that   have   clearance that exceed the road and/or rail allowances.
     Movement   of   people   and   supplies   from   the   rail   head   in Fort McMurray to site.
       The   Oilsands   projects   are   of   a   scale   and   duration   (30+ years   of   forecasted   construction)   that   the   transportations requirements   stemming   from   this   industrial   activity   alone could   justify   the   development   of   a   fleet   of   hybrid   air   vehicle of   varying   capacities   and   mission   requirements.   This   may   be a killer application this industry has sought for so long.
Conventional Exploration and Production
       Energy   exploration   and   production   is   distributed   over   a broad     geographic     area.     This     necessitates     transporting significant   volumes   of   oilfield   related   equipment,   supplies and   construction   materials   and   equipment.   In   the   southern areas,    roads    and    truck    transportation    provide    adequate options   for   moving   most   products.   However   in   the   north,   the two   most   significant   issues   are   the   lack   of   roads   in   some areas   and   inaccessibility   of   these   roads   during   a   significant portion   of   the   year   due   to   the   adequacy   of   the   roads   and soft   conditions   during   break-up   that   necessitate   road   bans. These   factors   contribute   to   seasonality   and   peaking   issues that result in increased direct costs or opportunity costs.
       A   case   in   point,   is   seasonally   drilling   activity.   The   recent surge   in   energy   prices   has   put   further   pressures   on   the energy   industry   to   explore   and   produce   new   wells.   As   the   oil extraction   industry   drains   the   easy   to   access   sedimentary basins,   new   capacity   is   being   sought   in   the   more   logistically challenging    Arctic    climate    zones.    In    much    of    northern Canada   and   Alaska,   local   ground   conditions   severely   inhibit oil   and   gas   drilling   activity.   Oil   drilling   in   areas   with   muskeg or   marshy   conditions   requires   the   ground   to   be   frozen   before heavy   drilling   rig   equipment   can   be   transported.   During   the remainder   of   the   year,   impassable   mud   and   environmental restrictions prohibit surface transport to these sites.
Skyfreighter Canada Ltd