Regina, Saskatchewan - Today, the Honourable Lynne Yelich, Minister of State for Western Economic Diversification, announced a $2.5-million Government of Canada investment towards the research and development of new technologies in enhanced oil recovery. Natural Resources Canada will provide $1.5 million and Western Economic Diversification Canada will provide $1 million to the Petroleum Technology Research Centre (PTRC) in Regina, who will be undertaking the research until 2011.

"Our Government is committed to ensuring that Canada is at the leading edge of developing clean energy technologies to reduce emissions and adapt to environmental change," said the Honourable Lisa Raitt, Minister of Natural Resources. "This research project with PTRC will help to achieve these goals by developing new technologies which will improve Canada's competitiveness."

"Today's investment in enhancing oil recovery acknowledges the leading-edge research being conducted here in Saskatchewan," said Minister of State Yelich. "By advancing technologies that will strengthen the competitiveness of the Saskatchewan economy, we are building on our record of results for the West." 

The Government of Canada investment will enable the PTRC to conduct two research projects that will result in the development of new technologies that will enhance oil recovery in the Saskatchewan and Canadian petroleum industry. Both projects will focus on developing technologies that will get more oil out of the ground, while at the same time lessening the environmental impacts of the process.

The first project will aim to eliminate the use of steam in the extraction of oil sands. If applied to all steam-assisted oil extraction operations in Canada, solvent vapour extraction technology could reduce C02 emissions by 85 million tonnes. The second project will help improve oil recovery by recycling flue gas, a gas that is often produced when extracting oil out of reservoirs and re-injecting the gas back into the reservoir.

"The continued support of the Government of Canada in our enhanced oil recovery research is instrumental in helping the oil industry monetize increasingly more difficult to access reserves," said Dr. Carolyn Preston, Executive Director of the PTRC. "At the same time, they are also providing the financial support to develop technologies that will mitigate environmental impacts."

Western Economic Diversification Canada, works with the provinces, industry associations, and communities to promote the development and diversification of the western economy, coordinates federal economic activities in the West and represents the interests of western Canadians in national decision-making.