By Oliver Kohlhammer, P. Eng., VP, Commercial, Scovan
In a quickly evolving world, where energy development comes with significant costs, timelines and risk, could the future of energy development be smaller, more efficient, project execution? I believe SAGD development requires a flexible mindset and rethinking of modular approaches to increase potential gains while limiting risk.
Adapting to change
The business landscape is rapidly evolving. Traditional, centralized business models with fixed value propositions are being outpaced by more agile and responsive approaches. Consider The Hudson’s Bay Company versus Amazon—both major corporations, but with fundamentally different strategies. One relied on brick-and-mortar locations, expecting customers to come to them. The other built a dynamic logistics network to deliver directly to the customer. The lesson? Agility wins in an increasingly interconnected world.
This shift applies not only to retail, but also to the energy sector—and especially to the customers Scovan serves. Our customers face a complex web of considerations that can impact a project’s viability: fluctuating product prices, carbon pricing, market volatility, tariffs, and more.
State of current development
Historically, the development of major SAGD projects can take 2–3 years or even longer, from concept to commissioning. They are built in centralized “Goldilocks” locations intended to tap into all nearby resources which takes careful planning and comes with significant implications when teams get it wrong. These central locations are often a distance from each identified resource area and the CPF facilities built to service one area are large projects that can creep into multi-billion dollar territory. So, currently we see long timelines, crucial planning resource requirements and significant CAPEX investment, not to mention the uncontrollable external influences on development projects. Recent years have highlighted just how little control businesses have over macroeconomic forces—pandemics, supply chain disruptions, geopolitical tensions, and evolving environmental regulations.
Flexibility is key
So, how do we adapt? At Scovan, we believe the future of energy development lies in agile, flexible, and rapidly deployable solutions. The industry needs infrastructure that can be mobilized quickly, brought into hard-to-reach areas, and adapted in real time to meet changing demands. We envision a future where SAGD and other energy development projects are built at smaller scale, in less time and more closely aligned with identified resource pockets.
Envision a scalable, modular pad based development, close in proximity to a remote resource location that includes steam generation, carbon capture, thermal well pad with multiple well heads and full AI/ML integration. Envision moving from commitment to cashflow in as little as one year with a CAPEX investment that is at the same capital intensity of mega-projects.
Scovan’s current suite of innovative solutions includes:
• PadX – Modular, standardized thermal well pad systems
• HipVap – Advanced produced water steam generation technology
• Acceleware – RF-based thermal production
• Delta CleanTech – Cutting-edge carbon capture and storage solutions
• Drishya Artisan/Brains – Digitilization and machine learning
Our commitment to delivering fully-integrated, standardized and modular products with a novel commercial model is central to this strategy. These systems can be integrated into customized configurations—solutions that address today’s challenges while remaining adaptable for the future.
With these technologies, our clients can access reservoirs that were once uneconomical due to size or remoteness. Projects move faster—from capital commitment to cashflow—reducing development risk. Even more excitingly, they can now do so without direct carbon emissions.
At Scovan, we focus our energy on both the short-term needs of our clients and the long-term health of our industry and communities. We’re committed to staying competitive today while helping shape a more sustainable energy future.
Originally published in IGNITE V10.
