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TOP 15 THINGS YOU NEED TO
KNOW ABOUT THE OIL SANDS
What are the oil sands? Naturally occurring
mixture of sand, clay, water and bitumen – a very heavy oil
Bitumen is separated from the sand and upgraded to refinery-ready crude oil
Where are the oil sands? o Located in northern Alberta oOil sands deposits underlie 142,200 square
kilometres o Surface mineable deposit 4,800 square kilometres o Land disturbed to date for mining is 600 square
kilometres o Less than 30% of mineable area has been
approved for mining oTotal minable area is about 0.15% of Canada’s
Boreal forest
1. The amount of oil in the sands is ridiculous
There is enough oil to provide Canada’s petroleum needs for 500 years.
Size of the oil sands is about the size of the state of Florida
Global Crude Oil Reserves by Country
170 billion barrels of oil recoverable with today’s technology
Up to 3% of the 142,000 km² oil sands region will be mined
80% of total bitumen recoverable will be by in-situ techniques like SAGD
2. There are two ways to mine the sands
Only 20% of the sands are minable through open pit mining.
Oil Sands Mining
80% must be mined in situ via SAGD
SAGD=Steam assisted Gravity Drainage
Process is 10 years new
Mining
SAGD
•20% of resource •55% of production
• 80% of resource• 45% of production
MIning SAGD
H
Pros and ConsType of Oil Production
Pros Cons
Mining FasterCheaper
Large areas disturbed(1 tonne of overburdent per tonne of oil sand and 3 tonnes of soil removed per barrel bitumen)Sulphur byproduct (1200 tons per day, 7 million tons on Syncrude site alone)High water usage (1 barrel of oil = 8 barrels of H2O, 6 recycled, 2 fresh)Tailing ponds
SAGD Less land disturbed(1/20th size of a pit mine)One site has a life expectancy of 40 years
High use of water, but not contaminating (80% recycled, 20% brackish aquifer and fresh)GHG emissions are highSeismic testing land disturbances and ecosystem changesBlowout accidents
3. Everything is big in Alberta Largest oil deposit in Canada Highest number of high school dropouts
of nation. Second biggest city “in” Newfoundland
is Ft. Mcmurray Trucks are massive!
$6 million eachTires $100000
…even the pollution The mining industry produces more waste than product:
one and a half barrels of Mature Fine Tailings (MFT) for every barrel of bitumen it extracts. This cannot be sustained. The volume of waste accumulating in great tailings lakes is an unacceptable environmental liability. (Dave Burkhart, 2010)
…oil sands development is a greater source of contamination than previously realized. In 2008, within 50 km of oil sands upgrading facilities, the loading to the snowpack of airborne particulates was 11,400 T over 4 months and included 391 kg of polycyclic aromatic compounds (PAC), equivalent to 600 T of bitumen, while 168 kg of dissolved PAC was also deposited. (Kelly et al., 2009)
The public are being told that once oil sands mining companies finish mining, they can return the land back to the way it was. But this simply isn't true. The land will not be restored to its historic condition. Oil sands mining companies only need to reclaim the land, they do not need to restore it.” (Rooney et al,2011)
Main environmental concerns1. Tailings accumulation
Mature Fine Tailings (MFT) main byproduct of open pit mines, has a consistency of quicksand.
2010 849 mil. cu. m. produced sitting in large ponds so tailings will settle out (very slow) onto the sandy base.
Est. by 2040 2.4 mil. cu. m. MFT on land Only one pond has been fully reclaimed.
2. Freshwater Flows of the Athabasca river are not protected. Both quality and
quantity concerns. No laws to protect groundwater; limits to concentration of
chemicals not on the effects on wildlife. Naturally low winter flow and high summer. Rates of water use do not change with season causing a
drawing down of water levels, reduction of O2 and stressed ecosystem
Water quality also an issue; still no effective water monitoring 40 years after mining began. To start this past summer.
No laws to protect healthy river state. Legally have the right to draw the river down to zero and 2 senior oil companies (Syncrude and Syncorp) have stated they have the right to take water until there is no more.
3. Wetlands Area a system of fens
○ Fens are mineral rich surface water or ground water Has taken millions of years to produce and are
vital for cleaning water, providing habitats and carbon storage
Industry is unable to restore these sites. Fens are being rebuilt with fens taken from other sites.
Only required to reclaim, not restore. Fens are replaced with saline marsh, not
equivalent at all
3. Climate GHG from production (burning nat. gas,
equipment, removal of carbon sinks), upgrading and refining, product consumption.
Carbon capture and storage not yet feasible.
IEA recently warned that International policy is failing and we are headed to a 6’C increase (predict 2’C fall off the rails)
Only Ontario closing coal plants has reduced Canada’s emissions
Alberta is the largest emitter of GHG in nation and is expected to increase by 60 mt by 2020, while all other provinces and territories will go down.
Canada is the 3rd largest per capita emitter of GHG (#1 USA, #2 Luxembourg) and #7 on planet in terms of nations, but we are small!
Must decrease emissions from oil sands if we are to decrease overall GHG’s
GHG emissions North America
5. Wildlife Coastal rainforests of BC vital to ecosystem
and the economy of first nations. Northern Gateway project proposes
pipeline through this area. Will be traversing the 4th most dangerous
marine region on the planet. Tankers 400 m long. Could not clean up any spill. Diluted bitumen carried, volatile component
would come off and bitumen sinks. Desire to expand to Asian markets will only
decrease the shift to renewables.
4. Oil Sand development is endangering the Caribou, but not in the way you think.
Main influence is SAGD Migratory routes blocked by
pipelines. Most populations of caribou are declining rapidly.
Low reproductive output (1 calf per year) Require a large area Habitat specialist Predation by wolves (esp. calves, 80% eaten before 6
wks. age) Low density to avoid predation Experiencing habitat disturbance from climate change as
deer move north
Caribou range and wolf ranges differed in 1994; caribou in the bogs, wolves in the river valley; now wolf range extended into caribou range.
Seismic lines built to test underground geology create pathways into the boreal forest
Wolves use these roads and seismic corridors to access the caribou as can travel easily. Typically Boreal forest marshy or too snowy to walk on
Typically wolves diet is bison, elk and deer. 1990’s wolf scat no sign of caribouCurrently – 8% caribou
5. Northern Alberta is gorgeous
6. Not all First Nations are upset with this development
Fort McKay population 700 Signed treaty in 1899 Originally a migratory tribe, great dependence
on land Reserve estab. July 13, 2007
From the funds received through resource development the reserve has: All members living on reserve have their
own home. Established the Sun child e-learning centre
(secondary e-learning site so students don’t have to travel)
School k-8 (103 students) Eldercare/Daycare centre Dorothy MacDonald Learning Centre (Adult
Basic Education, Business Admin. Certification program in conjunction with Ft. Mcmurray CC)
Industrial park across the river Cree Lodge (biggest revenue earner) Protected Moose Lake and Buffalo Lake for
fly-in hunting, fishing, trapping (although currently fighting the building of Dover road to these areas)
High rates of literacy and employment Scholarship program for university
Claim no increase in asthma or cancer rates (although drink water trucked into community, not out of river)
7. There is soooo much money involved
$1 billion dollars per WEEK is invested into the oil sands Approved projects estimated value of $92 billion over next 7
years, $200 billion by 2030 Average growth of the region 101% since 2000 Each oil sands job produces 8 to 9 jobs across Canada 905,000 jobs by 2035 Oil sands will purchase $117 billion in supplies and services
from Canadian provinces outside Alberta over the next 25 years. $28 billion to BC $5 billion to SK $4 billion to MN $63 billion to ON $14 billion to QU $3 billion to other provinces and territories
Over 11.7 million person years of employment 2.1$ trillion to Canada’s GDP, about $84 billion
per year $766 billion will be paid in taxes by the oil sands
industry Wood Buffalo-Cold Lake region of Alberta is
enjoying the lowest unemployment rate in the province at 4%.
Many opportunities outside of oil development as well.One dry cleaner in townNo shoe repairMost profitable Tim Horton’s franchises in Canada
(currently there are 2, a third is in the works)
8. The population growth in the region is mind-boggling
While they can’t get an accurate count the population is estimated to be 115,000 and is expected to grow to 230,000 by 2028.
Average age is 32, half the population is between 24-45 years old.
2.7 men for every woman 100 babies born every month, last April 120 babies
were born 127 different countries, 37 different languages 820,000 using an airport built for 250,000 9 more schools will be needed in the next decade Average cost of a house $749,398, average rent
$2049/mo
9. The accommodations for workers are not too shabby
Spent a night at the new StatOil worker’s camp
Home of the only free Starbucks in Canada
10. The pipeline The main reason we need a pipeline is to sell
our bitumen to markets where it will get a higher price, namely Chicago and the Gulf Coast.
Current WTI (West Texan Intermediate) price is $97/barrel, in our markets getting $47/barrel. Cost to produce is approx. $10/barrel (SAGD)
Industry reasons for not building our own refineries:Too expensive (isn’t a pipeline too?)Not enough people to staff themLabour costs are too high here
11. Canada is not Norway Canada and Norway both began
their oil journey about 30 years ago. Peter Lougheed invested the funds
to make the oil sands happen in Alberta.
He believed two things needed to happen:Measured approach to development in
order to make the project sustainableEnsure the benefits go to Albertans;
30% royalties to a Heritage Trust Fund Sadly, growth without constraint is
being promoted
Canada Norway
Some money put into trust via the Heritage Trust Fund.Fund has been raided over the years by politicians. Currently stands at $15.9 billion as of June 30, 2012.Most of the revenues go back to the economy.Oil and gas #1 in economy and now very hard to diversify.
Revenues separate from the economy.Put into a National trust fund now valued at $525 billion dollars.Diverse economy created to support nation when oil is gone.
13. Many good people work for the industry and offer hope
Spoke with many industry insiders from wildlife specialists, researchers, environmentalist , to corporate head honchos.
Most want to protect the environment and make the oil sands more sustainable.
12. The production is going to happen, but it doesn’t have to happen so fast.
Canadians (myself included) are generally woefully uneducated about a resource that will shape our country
600 sq. km. of land disturbed to date (size of Calgary) 0.15% of the Canadian Boreal Forest Export 1.9 million barrels per day $20 bil. /year needed to invest in the oil sands If reduce production can stop flooding the market and
get a higher price Goal of industry is to get back main investment, on
average takes 7 years,
Oil sands are owned by Albertans but regulated by the federal and provincial government.
When asked Albertans what is their priority for the use of the oil sands: Reclamation 20% Habitat 19% Federal Monitoring 18% GHG’s 14% Water 12% Reclamation Pace 10% Land use 6% Development 2%
When asked Albertans what values they want to drive the development they responded:
1. Integrity
2. Honesty
3. Transparency
4. Accountability
5. stewardship
Great Resources!! Oil Sand Portal www.osip.alberta.ca Centre for Energy - http://www.centreforenergy.com Alberta Education
approved curriculum resources that focus on Canada’s natural resources. Available in both French and English.
Oil Sands Discovery Centre - Offers curriculum based education programs focused on the oil sands. Oil Sands kits are available to order and use on your classroom
Science Alberta Foundation - www.wonderville.ca Curriculum linked resources and activities to help make science relevant and meaningful in the classroom. Resources are listed by grade.
Seeds Foundation - www.greenschools.ca SEEDS provides curriculum linked energy and environmental resources by topic and grade.
Energy Resources Conservation Board - www.kidzone.ercb.ca Interactive website which students can use to learn more about the petroleum industry.
More resources… Pembina Institute http://www.pembina.org/oil-sands Fort McKay First Nation http://www.fortmckay.com/ Alberta Government http://oilsands.alberta.ca/resource.html The Oil Sands Developers Group
http://www.oilsandsdevelopers.ca/ National Geographic – 2009 Article on Oil Sands
http://ngm.nationalgeographic.com/2009/03/canadian-oil-sands/kunzig-text/1
CAPP: 2009 response to National Geographic Article on Oil Sands http://www.capp.ca/ABOUTUS/MEDIACENTRE/CAPPCOMMENTARY/Pages/NationalGeographic,March2009Issue.aspx
