Husky Energy Information
Husky Energy Inc. (TSX: HSE) is a large, integrated Canadian energy company based in Calgary, Alberta. Husky's foundation is in Western Canada, where it has extensive conventional oil and natural gas assets, significant heavy oil production and a range of midstream and downstream operations, including refineries, upgrading facilities, and pipelines. Husky also has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. In the Atlantic Region, off Canada's East Coast, the company holds interests in 20 exploration licenses and producing properties at Terra Nova and White Rose. Husky also owns interests in the producing Wenchang oilfield offshore China and is proceeding with the development of the Liwan Natural Gas Project in the South China Sea. The company also holds exploration rights offshore Indonesia. In the United States, the company owns a refinery in Lima, Ohio and holds a 50 percent ownership interest with BP in a refinery at Toledo, Ohio.[1] The company employs approximately 4,700 people (as of 2011),[3] has approximately $32 billion in assets[2] and produced an average of 313,000 barrels (49,800 m3) of oil equivalent per day in 2011, making it one of Canada's largest energy companies.
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Assets and holdings
Husky Gas Station, Downtown Edmonton, Alberta.Husky Energy has proven petroleum reserves of 682 million barrels (108,400,000 m3) and 2.4 trillion cubic feet (68 km3) of natural gas, most of it in Western Canada. It owns approximately 550 filling stations in Canada and operates the Lloydminster Heavy Oil Upgrader. Husky holds property and/or mineral rights to some 5.2 million developed acres (21,200 km²) in Western Canada.
The corporation also owns some 618,000 acres (2,500 km²) in the Athabasca, Peace River, and Cold Lake regions of Western Canada, which the company claims hold some 48 billion barrels (7.6×109 m3) of bitumen (discovered petroleum-initially-in-place).
Husky holds extensive offshore properties. It is the operator of the White Rose project and partner in the Terra Nova project in the Jeanne d'Arc Basin off Newfoundland. The company also owns a 40% interest in the Wenchang project offshore China, which expects to derive as much as 92 million barrels (14,600,000 m3) of oil from a field located near the mouth of the Pearl River. The remaining 60 percent of the project is owned by the Chinese National Offshore Oil Corporation (CNOOC). Interests have also been acquired in two fields located off the coast of Madura, Indonesia.
In terms of refined products facilities, Husky owns and operates the Prince George Refinery light oil oil refinery in Prince George, British Columbia, a light oil refinery in Lima, Ohio and is a 50 percent owner with BP of a refinery in Toledo, Ohio; an asphalt refinery at Lloydminster, Saskatchewan. Husky is also involved in ethanol production and operates the Husky Lloydminster Ethanol Plant and the Husky Minnedosa Ethenol Plant.
A substantial portion of Husky's property and operations base has come from its acquisition of Renaissance Energy. In 2003, it also purchased the Canadian unit of the American-based Marathon Oil Corporation.
Corporate history
Now a publicly traded Canadian company with global interests, Husky Energy was originally founded in 1938 in Cody, Wyoming, in the United States, as the Husky Refining Company. Its primary founder was Glenn Nielsen. The first refinery was built in Cody, with a second constructed later in Riverton, Wyoming. In 1946, the Riverton refinery was moved to Lloydminster, Alberta, Canada, to take advantage of the expanding asphalt and heavy oil opportunities in the area. A wholly owned subsidiary, Husky Oil and Refining Ltd., was created and headquartered in Calgary, Alberta, Canada. The Cody refinery continued operations well into the 1970s, producing primarily asphalt. In the late 1980s and early 1990s, there were periodic rumors floating around Cody that the refinery would be reopened by a variety of different companies. One of the more persistent rumors was the impending purchase and reactivation of the refinery by Flying J. This never happened, however, and the entire refinery was finally razed in the late 1990s.
Operations
Husky Energy's operations are divided into three business segments: Upstream, Midstream, and Downstream.
The Upstream division focuses on oil and gas exploration and extraction. In addition to its existing producing assets and opportunities in Western Canada, the company has identified three pillars to fuel its future growth: the oil sands, offshore development on the east coast of Canada, and offshore development in South East Asia.
Because some 80% of Alberta's oil sands are too far below the surface for standard mining and drilling procedures to access, Husky plans to use Steam Assisted Gravity Drainage technology, by which bitumen is heated with steam to reduce its viscosity. When the liquid becomes more fluid, it is pumped to the surface and back to the central facility. After the bitumen is recovered, it will be subjected to a process by which useful oil will be extracted. The company's largest oil sands project to date is the Sunrise Energy Project in northern Alberta, which it plans to make operational by late 2014.
The company's Tucker Oil Sands Project began producing in 2006, and at the end of 2011 was producing approximately 10,000 bbl/d (1,600 m3/d).
Costing 2.35 billion Canadian dollars and starting operation in November 2005, the White Rose project (located off Newfoundland) is anticipated to recover over 600 million barrels (95,000,000 m3) of oil. Another offshore project, Wenchang, located off China's Pearl River and run jointly with CNOOC produced an average of 10,700 barrels per day (1,700 m3/d) in 2010.[1]
Husky's Midstream division engages in activities such as oil upgrading, pipeline systems, commodity marketing, electricity cogeneration, oil and gas storage, and processing.
Currently, Husky markets about 952,000 barrels (151,400 m3) of oil per day and processes another 300,000 barrels (48,000 m3) in upgrading and refining. The company's pipeline throughput averaged 512,000 barrels per day (81,400 m3/d) in 2010.
Husky Energy incorporates the use of ethanol in some of its gasoline fuel products.
Retail operations
In December 2009, Husky Energy announced that it has entered into an agreement with Suncor Energy Inc. and Suncor Energy Products Inc. to purchase 98 retail outlets in the Ontario market.[4] Husky will acquire 68 stations that are branded Sunoco and 30 stations that are branded Petro-Canada.
Corporate governance
Current members of the board of directors of Husky Energy are: Stephen Bradley, Canning Fok, Asim Ghosh, Martin Glynn, Poh Chan Koh, Eva Kwok, Stanley Kwok, Victor Li, Frederick Ma, George Magnus, Colin Russel, Wayne Shaw, William Shurniak, and Frank Sixt.
Tommy Douglas served as a director of Husky Oil after his retirement from politics.
The current Chief Executive Officer and President of Husky is Asim Ghosh. Ghosh assumed the role of CEO and President in June 2010, taking over the position from John C.S. Lau, who had served as the CEO since 1993.[5]
References
- ^ a b c Husky 2010 Annual Report. [1], accessed July 22, 2011
- ^ a b Husky Energy Management Discussion & Analysis 2011 [2], accessed April 5, 2012
- ^ a b Husky Energy 2011 Annual Information Form. [3], accessed April 5, 2012, Page 55
- ^ Husky Energy Announces Expansion of Retail Network
- ^ Husky Energy Corporate Information, "Husky Energy Appoints New President and Chief Executive Officer", May 21, 2010, accessed July 19, 2011.
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