Husky Energy

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Husky Energy Inc.
Type Public company
Traded as TSXHSE
TSXHSE.PR.A
OTCQBHUSKF
S&P/TSX 60 component
Industry Oil and gas
Founded 1938 as Husky Refining Company
Headquarters Calgary, Alberta, Canada
Key people Asim Ghosh, President & CEO, Li Ka-Shing
Products Oil, natural gas, asphalt, associated products ,[1]
Revenue $23.1 billion (2012)[2]
Employees 5,200 [3]
Website www.huskyenergy.com
Husky Oil headquarters in Calgary

Husky Energy Inc. is one of Canada’s largest integrated energy companies, headquartered in Calgary, Alberta. It is publicly traded on the Toronto Stock Exchange under the symbols HSE and HSE.PR.A. The Company operates in Western and Atlantic Canada, the United States and the Asia Pacific Region, with Upstream and Downstream business segments. Husky Energy is controlled by Hong Kong billionaire Li Ka-Shing who owns a majority share of approximately 70% according to Bloomberg[4] and Financial Post[5] data.

Husky's foundation is in Heavy Oil and Western Canada,[6] where it has extensive conventional oil and natural gas assets, significant heavy oil production and downstream operations, including refineries, upgrading facilities and pipelines. The Company is pursuing three growth pillars in the Asia Pacific Region, the Oil Sands and the Atlantic Region.

In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea is progressing towards first gas. The company also holds exploration rights offshore Indonesia.

Husky also has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project is on track for first oil in late 2014.

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. 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.[7] The company employs approximately 5,200 people (as of 2012),[8] has approximately $36.9 billion in assets [9] and produced an average of 312,000 barrels [10] of oil equivalent per day in 2013, making it one of Canada's largest energy companies.

Assets and holdings[edit]

Husky Gas Station, Downtown Edmonton, Alberta.

At 2013 year-end, Husky Energy had total proved reserves before royalties of 1.3 billion boe, probable reserves of 1.9 billion boe and best estimate contingent resources of 13.2 billion boe.[10] It owns approximately 512 retail stations in Canada and operates the Husky Lloydminster Refinery, the Husky Lloyminster Upgrader, the Prince George Refinery and the Husky Lima Refinery. It has a 50 percent interest in the BP-Husky Refinery in Toledo, Ohio. 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. Two new oil fields in at Bay du Nord and Harpoon in the Flemish Pass were discovered in 2013 with partner Statoil, near the previously announced Mizzen field.

The company also owns a 40% interest in the Wenchang project offshore China, 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). Husky is advancing its two planned shallow water developments offshore Indonesia in the Madura Strait. It is evaluating a fourth natural gas discovery made in the vicinity of its MDA/MBH fields.[10]

In terms of refined products facilities, Husky owns and operates the Lloydminster Heavy Oil Upgrader in Lloydminster, Saskatchewan, the Asphalt Refinery in Lloydminster, Alberta, the Prince George Refinery in Prince George, British Columbia, the Lima Refinery in Lima, Ohio and is a 50 percent owner with BP of a refinery in Toledo, Ohio. Husky also operates the Husky Lloydminster Ethanol Plant and the Minnedosa Ethanol 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[edit]

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.[citation needed] This never happened, however, and the entire refinery was finally razed in the late 1990s.

In 1998 Husky purchased Mohawk Oil, the largest independent chain of filling stations in Western Canada.[11] Mohawk continues as a banner of filling stations within the Husky company.

Operations[edit]

Husky Energy's operations are divided into two business segments: Upstream and Downstream.

The Upstream division focuses on oil and gas exploration and extraction. In addition to its existing producing assets and opportunities in Heavy Oil and Western Canada, the company has identified three pillars to fuel its future growth: the Asia Pacific Region, the Oil Sands and the Atlantic Region.

In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea is progressing towards first gas. 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 is advancing its two planned shallow water developments offshore Indonesia in the Madura Strait. It is evaluating a fourth natural gas discovery made in the vicinity of its MDA/MBH fields.[10]

Husky has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project is on track for first oil in late 2014.

Because some 80% of Alberta's oil sands are too far below the surface for standard mining and drilling procedures to access, Husky will use Steam Assisted Gravity Drainage technology at Sunrise, where 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 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 and starting operation in November 2005, the White Rose project (located off Newfoundland in the Jeanne d'Arc Basin) is anticipated to recover over 600 million barrels (95,000,000 m3) of oil. Two new oil fields in at Bay du Nord and Harpoon in the Flemish Pass were discovered in 2013 with partner Statoil, near the previously announced Mizzen field.

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[edit]

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.[12] Husky acquired 68 stations that were branded Sunoco and 30 stations that were branded Petro-Canada.

Corporate governance[edit]

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, Neil McGee, 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.[13]

References[edit]

External links[edit]