• Baytex Energy Corp.
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  • Baytex Energy Corp.
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  • Baytex Energy Corp.
Baytex Energy Corp.

Heavy Oil Value Chain

  

At Baytex, we produce our heavy oil from vertical, slant and horizontal wells using progressive cavity pumps capable of handling large volumes of heavy oil combined with gas, water and sand. Initial production from these wells usually averages between 40 and 500 bbl/d of crude with gravities ranging from 11 to 18 degrees API. Once produced, the oil is trucked or pipelined for delivery to a sales pipeline or rail loading facility.

Pipeline Sales

Prior to entering a sales pipeline, the heavy crude oil is usually blended with light-hydrocarbon diluents (such as condensate). At this point, the blended crude oil is sold by Baytex to various purchasers, and is delivered to markets in both Canada and the United States via pipeline. After reaching a refinery, the blended crude oil is refined into petroleum products such as fuel oil, lubricants, and asphalt by the crude purchasers.

Crude by Rail

Baytex actively employs risk mitigation strategies to maximize the profitability of its heavy oil production. Beginning in 2012, our historic practice of hedging through fixed forward pricing contracts and long-term physical supply contracts was augmented through a significant increase in rail transportation, which allows us to deliver our heavy oil to higher netback markets and mitigate our exposure to pipeline access disruptions. One particular advantage of transporting heavy crude oil via rail is that we are able to ship raw undiluted barrels, which eliminates the need to purchase diluent. The raw heavy barrels are sold by Baytex at the rail loading facility to various purchasers, and then delivered to markets in the United States. After reaching a refinery, the raw heavy barrels are refined into petroleum products such as fuel oil, lubricants, and asphalt by the crude purchasers.

 

 

Heavy Oil Value Chain

  

Explore Our
Operations

Our operations are organized into Canadian Heavy Oil, Canadian Light Oil and Gas and United States business units.

Operations Map

Operations Map
Responsible Development

Baytex Energy’s Good Neighbour program is a company-wide program that focuses on being a welcomed neighbour in the communities in which we operate.

Good Neighbour Program

Understanding
Heavy Oil

Learn more about the
business of heavy oil in our marketing section.


Learn More

Understanding Heavy Oil