The 120-odd active oil sands projects are owned by major oil companies from Canada and around the world, including the U.S. and China. Together, the companies pump out 2.6 million barrels every day, virtually all of which is shipped to U.S. refineries.
Coal faces the same problem - it is an environmental pariah and market prices are highly unstable. With the profits flowing to corporations and the long term costs being borne by the public, the oil sands are not a sustainable resource.
“Canadian oil has never been dirtier”On average, the amount of carbon emitted to produce a barrel of Canadian oil has continuously increased since 1990—a 16 per cent increase overall. Canadian oil has never been dirtier.
According to a 2019 economic review document published by the Government of Alberta, “the breakeven [WTI] price for a new stand-alone mine is currently within the US$75-85/ bbl range,” while in-situ production is lower, at around US$55 or US$60 per barrel — still way above WTI oil prices as of late.
So are the oil sands essential, or dead? In truth, the oil sands are into the midpoint of its thriving story, certainly not its end. Global oil demand is projected to rebound in 2021 and Asia will account for 77 per cent of oil demand growth through 2025.
A strong oil sands sector drives a strong national economy by attracting capital, creating jobs and supporting public services. Local companies in every province supply goods and services to the oil sands—creating jobs, growth and economic opportunity in local communities.
Oil and gas production are among the main culprits of air pollution – one of the world's biggest killers according to the United Nations. When fossil fuels are burned by power plants, automobiles and industrial facilities, they generate toxic gases.
Article content. Alberta will soon have the cleanest oil industry in the world. The massive industrial-scale nature of oilsands production worked for decades to make producing oil in the Fort McMurray region a higher-cost and higher-emissions proposition.
Tar sands extraction emits up to three times more global warming pollution than does producing the same quantity of conventional crude. It also depletes and pollutes freshwater resources and creates giant ponds of toxic waste. Refining the sticky black substance produces piles of petroleum coke, a hazardous by-product.
All told, producing and processing tar sands oil results in roughly 14 percent more greenhouse gas emissions than the average oil used in the U.S. And greenhouse gas emissions per barrel have stopped improving and started increasing slightly, thanks to increasing development of greenhouse gas–intensive melting-in-place
Due to the regional nature of Canadian refining markets, Canada also imports some crude oil. Canadian crude oil imports come from a range of countries, including the U.S. (54%), Saudi Arabia (11%), Iraq (8%), and Norway (5%).
Oil sands deposits are found around the world, including Venezuela, the United States and Russia, but the Athabasca deposit in Alberta is the largest, most developed and uses the most technologically advanced production processes.
Today, people who live near tar sands strip-mining, drilling, and processing operations in Canada face health risks from additional air and water pollution, and there are reports of an increasing incidence of cancer.
Oil sands development consumes large amounts of water and energy—currently, two to five barrels of water (natural sources and recycled water) are required for every barrel of oil produced by mining—and produces byproducts such as contaminated tailings.
The energy intensive process results in increased air emissions. The oil sands industry currently contributes a significant amount to Canada's national air emissions portfolio. Oil sands mining and in-situ production are currently projected to grow as much as five-fold by 2030.
The used water is highly toxic for the the living creatures. After the oil is seperated from the sand and clay. The remaining parts is highly toxic. During the extraction process it emits greenhouse gases which are very harmful for our environment.
Oil sands producers have slashed operating costs by a third since 2014, but building a new thermal project - in which steam is pumped as deep as one kilometer (1094 yards)underground to liquefy tar-like bitumen and bring it to the surface - requires U.S. crude benchmark at around $60 a barrel to break even, analysts
The oil sands accounted for 63% of Canada's oil production in 2019 or 2.95 million barrels per day. The oil sands have an estimated $325 billion of capital investment to date, including $10.2 billion in 2019.
Oil sands (e.g., diluted bitumen) can negatively impact the environment and human health. Mining oil sands in Alberta, Canada, has led to degradation of forests and parts of the Athabasca River watershed. Short-term exposure to diluted bitumen can increase the risk of cancer and respiratory and neurological diseases.
On paper, Canada could become energy self-sufficient tomorrow. Every day we produce about 3.9 million barrels of oil per day, and use less than 2 million barrels. “Saudi crude and WCS (Western Canadian Select) doesn't overlap much in terms of their markets,” he told the National Post.
Here are the 10 states with the highest oil production:
- Texas (1,609,075)
- North Dakota (461,531)
- New Mexico (248,958)
- Oklahoma (200,685)
- Colorado (177,817)
- Alaska (174,800)
- California (169,166)
- Wyoming (87,955)
In-situ ProductionCurrently, 80% of oil sands reserves are accessible via in-situ techniques. Steam Assisted Gravity Drainage (SAGD) is currently the most widely used in-situ recovery method. This method requires the drilling of two horizontal wells, one slightly higher than the other, through the oil sands deposit.
In May 2019, the Alberta Energy Regulator (AER) published its annual Alberta Energy Outlook, predicting that oil sands CapEx will “moderately increase” in 2020 and 2021 but then “decrease from 2022 to 2028.” The AER noted there was only one possible new oil sands mine (Teck's Frontier mine, which the company withdrew
- Very large supply. Second largest oil field in the world.
- Economically recoverable at today's oil prices.
- Will help keep oil prices relatively low.
- Enormous growth potential.
- Big economic driver in Alberta.
- Stable source country (a rarity for oil)
- GHG emissions could potentially be minimized through CCS.
Top ten countries with the largest oil reserves
- Venezuela – 304 billion barrels.
- Saudi Arabia – 298 billion barrels.
- Canada – 170 billion barrels.
- Iran – 156 billion barrels.
- Iraq – 145 billion barrels.
- Russia – 107 billion barrels.
- Kuwait – 102 billion barrels.
- United Arab Emirates – 98 billion barrels.
Oil sands operations currently emit roughly 70 Megatonnes (Mt) per year. There is currently no limit on oil sands emissions, either by facility or industry-wide.
Alberta's oil sands were formed millions of years ago, as tiny marine creatures died and drifted to the sea floor and were covered by layers of sediment that exerted enough pressure and temperatures to transform the organic matter into oil. Over millions of years, that oil became trapped in thick layers of sand.
The negative impacts from the tar sands include: The loss of habitat land, pollutants released into the air and water, loss of water from nearby waterways, decrease in wildlife populations, more tailings ponds, higher cancer rates among indigenous people, and oil spills through the distribution of these refined oils.
Crude oil is a liquid fuel source located underground. It is extracted through drilling. Oil is used for transportation, heating and electricity generation, varied petroleum products, and plastics.
