Husky Energy
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Husky Energy, Inc. Template:TSX is a large integrated energy company based in Calgary, Canada in Western Canadian Place. It is listed under the symbol "HSE" on the Toronto Stock Exchange. Primarily focusing on petroleum and gas, Husky employs over 3000 people (as of 2004), holds over $12 billion in assets, and produces over 300,000 barrels of oil equivalent per day, making it one of Canada's largest energy companies. It conducts operations primarily in the United States, Canada, and China. A majority stake in Husky Energy is owned by Hong Kong billionaire Li Ka Shing and his holding company Hutchison Whampoa.
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Assets and Holdings
Husky Energy has proven petroleum reserves of 430 million barrels and 2 trillion cubic feet of natural gas, most of it in western Canada. It owns approximately 500 filling stations in Canada and operates the Lloydminster Bi-Provincial Heavy Oil Upgrader. Husky holds property and/or mineral rights to some 6.67 million acres (27,000 km²) in western Canada.
The corporation also owns some 425,000 acres (1,720 km²) in the Athabasca, Peace River, and Cold Lake regions of western Canada, which the company claims hold some 33 billion barrels of bitumen.
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, which expects to derive as much as 92 million barrels of oil from a field located near the mouth of the Pearl River. The remaining sixty 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 a light oil refinery at Prince George, British Columbia; an asphalt refinery at Lloydminster, Alberta/Saskatchewan; and an ethanol plant at Minnedosa, Manitoba. A further plant is supposed to open at the end of 2005 near the Lloydminster asphalt refinery.
A substantial portion of Husky's property and operations base comes from its acquisition of Rennaissance Energy. In 2003 it also purchased the Canadian unit of the American-based Marathon Oil Corporation.
Operations
Husky Energy's operations are divided into three categories: Upstream, Midstream, and Refined Products.
The Upstream division focuses on oil and gas exploration and extraction. The division's primary projects include mineral extraction from oil sands, and offshore drilling at the White Rose and Wenchang sites.
Because some 80% of Alberta's oil sands are too far below the surface for standard mining and drilling precedures to access, Husky plans to use "steam assisted gravity drainage technology", by which bitumen will be raised to closer to the surface through high temperatures. After the bitumen is recovered, it will be subjected to a process by which useful oil will be extracted. The company's Tucker Thermal Project is expected to begin producing in 2007 and over 35 years it is estimated it will recover some 352 million barrels of bitumen. A second endeavor, the Sunrise Thermal Project, may produce 3.2 billion barrels.
Costing 2.35 billion Canadian dollars and expected to begin operations in late 2005 or early 2006, the White Rose project (located off Newfoundland) is anticipated to recover 200 to 250 million barrels of oil. Another offshore project, Wenchang, located off China's Pearl River and run jointly with the CNOOC is expected to produce up to 92 million barrels of oil, with drilling set to commence in 2005 or 2006.
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 300,000 barrels of oil per day and uses another 145,000 barrels in refining and processing. A total of 500,000 barrels per day are managed overall. The company manages 1.8 billion cubic feet per day of natural gas and transports it along sixteen pipelines.
Husky Energy uses ethanol instead of MTBE in their gasoline products.
Corporate governance
Current members of the board of directors of Husky Energy are: Canning Fok, Donald Fullerton, Martin Glynn, Terence Hui, Brent Kinney, Holger Kluge, Poh Chan Koh, Eva Kwok, Stanley Kwok, John Lau, Victor Li, Wayne Shaw, William Shurniak, and Frank Sixt.