The target is the development of Alberta's oil sands, which are vast tar-like tracts that can be processed into synthetic crude oil. During the next 10 years, there is that much opportunity in equipment and services to be exploited, estimates the provincial government.
"We know we can't do this alone," said Lori Schmidt, senior director for productivity for Alberta's finance and enterprise department at a presentation Tuesday at the Rivers Club, Downtown. She is one of five Alberta officials here until Thursday.
Attending were about 60 local representatives of business, economic development organizations and universities around Pittsburgh. It is the only market targeted with this business opportunity: To help develop the largest known oil reserves, 179 billion barrels worth, outside of Saudi Arabia.
Why pitch Pittsburgh for a shot at this? Because of Canada's "ongoing relationship" with the Pittsburgh region, said Schmidt. That is, most of Pittsburgh's largest corporations operate in Canada, which also represents a major export market for this region. Plus, many of Canada's biggest companies have a base here.
Oil sands, a tar-like substance, usually resides in rock seams below ground but also is found in pits on the earth's surface. Most often, steam is injected to heat the oil sands sufficient to pump it to the surface. Then, the more-liquid material is gasified to separate out refinable crude oil.
Alberta oil sands need help in several areas. For instance, oil industry workers are in short supply, with nearly six retirees for every one new worker in the coming years, said Sycor America, a consultant to Alberta. By 2018, 110,000 workers will be needed.
The province is mainly looking to Pittsburgh for its expertise in mining, robotics and advanced materials, as well as its university research and development muscle.
"In a lot of ways, Edmonton (Alberta's capital) would be the oil-sands equivalent of Dallas and oil," said Eric Kelusky, vice president of technology for Nova Chemicals Corp., Moon, which was spun out of a Canadian company 10 years ago this month.
For the past three years, Nova Chemicals has been chemically extracting usable petroleum products from Alberta's oil sands muck, said Kelusky. Nova expects to reach commercial-scale production during the next two to eight years.
Officials of the Pittsburgh Regional Alliance, which coordinated yesterday's event, noted that Western Pennsylvania was home to the first oil and gas wells in the 19th century, along with the first natural gas pipeline, a George Westinghouse innovation.
Kennametal Inc. in Unity, is also active in Alberta. It makes teeth on earthmoving equipment that can rip tundra down to minus 50 degrees Fahrenheit, for instance. The company is also a member of the Alberta Research Council, "a good way to get your toe in the sand," said Vern Cameron, Kennametal's vice president of global marketing.
Industrial Scientific, Oakdale, began supplying gas-detection equipment for oil sands mining in 1995. The market now accounts for about 5 percent of its $150 million in sales, and looks like it will grow about 20 percent annually "for some years," said vice president and general manager Kevin Miller.
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