Record bitumen output will push diluent demand to new highs in 2022, reshaping transportation logistics, heavy crude blending strategies, and oil sands market dynamics.

The Alberta Energy Regulator (AER) reported another bitumen production record in September, averaging 2.19 million bbl/day for the month. Those figures are up 83,000 bbl/day from August, the third consecutive monthly record high.

Including synthetic and conventional crude, total Alberta production reached a record 3.88 million bbl/day in September, narrowly beating out the November 2021 record of 3.85 million bbl/day.

BIG GAINS FROM THE MINERS

Although Alberta’s miners have yet to report September data, the extra bitumen barrels are most likely attributed to Fort Hills, which is expected to average 165,000 bbl/day this year, up from 94,000 bbl/day in 2021.

Fort Hills has a capacity of 194,000 bbl/day, producing partially deasphalted bitumen that is diluted with condensation and shipped directly to market.

Although the mine began production in 2018, output was held back due to the 2019 curtailment orders, the 2020 COVID pandemic, and slope stability issues that limited mining rates last year.

Operator Suncor Energy will present an update to its investors on November 29, 2022.

Aside from Fort Hills, Imperial’s Kearl Mine is also expected to report a robust 2022. The mine produces a similar-quality partially-deasphalted bitumen, which is also sold as a diluted bitumen blend. Imperial has set full-year guidance at about 270,000 bbl/day, on par with Kearl’s record production rates last year.

Combined, Kearl and Fort Hills are expected to produce 430,000 bbl/day of bitumen this year, a record high for the miners. The remaining marketable bitumen volumes are sourced from Alberta’s in-situ producers, who collectively produced 1.5 million bbl/day in September.

HIGHER DEMAND FOR DILUENT

Strong performance from Alberta’s bitumen producers has perked up demand for condensate, which is mainly imported from the US. Statistics Canada reported diluent imports in August were nearly 300,000 bbl/day. Enbridge’s Southern Lights pipeline imported a record 191,000 bbl/day condensate, while Pembina’s Cochin Pipeline imported 105,000 bbl/day.

Pembina recently expanded Cochin by 15,000 bbl/day, bringing the current import capacity to 115,000 bbl/day. The company says another 35,000 bbl/day expansion is currently under development.

Pembina acquired the Cochin pipeline by purchasing Kinder Morgan’s Canadian assets in 2019.

Surging Bitumen Output Creates Opportunities — Are You Positioned to Capitalize?

With record production levels driving demand for diluents, stakeholders in oil sands, logistics, and upgrading need scalable, efficient, and sustainable solutions to stay ahead.

Klean Industries Powers Sustainable Bitumen & Oil Upgrading:

✅ Alternative diluent production through advanced waste-to-fuel processes
✅ Circular economy integration for oil blending and transport
✅ Lower-carbon crude solutions ready for ESG and compliance markets
✅ Strategic consulting on energy optimization and carbon reduction

Partner with Klean Industries to maximize value in a rapidly evolving bitumen and diluent market » GO.