Producing and Investing in Energy

Fact: Much of the oil we use in this province and this country comes from the oil sands.

  • In 2008, total oil sands crude bitumen production in Alberta was about 1.5 million barrels per day (bpd) and is anticipated to be some 2 million bpd in 2010.
  • Oil sands represent almost two-thirds of Alberta’s oil production and approximately half of Canada’s oil production.

Fact: Energy from the oil sands will be instrumental in meeting the world’s demand for oil in the future.

  • Oil sands bitumen production continues to increase and is anticipated to reach almost four million bpd by 2020.
  • Over the next decade, the oil sands are anticipated to be the single largest source of new oil supply in the world.
  • Oil sands development involves two steps: extracting bitumen from sand and then upgrading it into synthetic crude oil. These two steps resemble a manufacturing process and employ significant numbers of people, running 24 hours a day and 365 days a year.

Fact: Oil sands developers contribute to the entire economy by investing a significant amount of their earnings in new projects, expansions and payments to governments.

  • Oil sands companies are forecast to invest over $20 billion in construction capital projects and over $30 billion in operations costs for 2009 and 2010 despite recent challenges.
  • Oil sands account for almost two-thirds of investment in Alberta’s major capital projects. 
  • In 2008, capital investment in the oil sands will reach or exceed the level of spending for all manufacturing across Canada.
  • Each dollar invested in the oil sands creates approximately nine dollars worth of economic activity globally, and six dollars of activity in Alberta.
  • For every dollar oil sands companies earn, approximately 54 cents is paid to governments in taxes and royalties.

Facts sourced by Oil Sands Developers Group (October 2009).

Sources for all facts available upon request.

 

Social and Economic Impacts of Oil Sands Development

Did you know...

Canada’s oil reserves are second in the world behind Saudi Arabia

Of 179 billion barrels of Canada’s oil reserves, the oil sands represent 97 per cent

For each permanent oil sands-related job, nine additional direct, indirect and induced jobs are created in Canada.

Currently 240,000 jobs in Canada are directly or indirectly linked to the oil sands.

Between 2000 and 2020, oil sands development has the potential to generate at least $123 billion in royalty and tax revenues for Canada’s federal and provincial governments.

The oil sands currently account for only 4.6 per cent of Canada’s greenhouse gas emissions. This is less than 0.1 per cent of total global emissions.

Alberta was the first jurisdiction in North America to legislate industrial greenhouse gas emission reductions.

Producers have made great strides in reducing the amount of emissions per barrel of bitumen extracted from the oil sands. The equivalent of 2.6 million tonnes of reductions have been made – the same as taking more than 550,000 cars off the road.

The province of Alberta has committed $4 billion toward climate change initiatives, including $2 billion for public transit and $2 billion for carbon capture and storage (CCS). This is the largest CCS investment in the world.

Air quality around oil sands operations is better than all North American cities reviewed by the Alberta Clean Air Strategic Alliance.

Alberta air quality standards are the most stringent in Canada.

Air quality in Fort McMurray is monitored around the clock. Results are available at the WBEA site.

Air quality has been extensively modeled and demonstrated to remain within Alberta’s strict air quality guidelines even with all projected oil sands development in place.

Oil sands are located below the surface of 140,200 square kilometres of land, 4.5 per cent of Canada’s total boreal forest.

Mineable oil sands only exist under 0.1 per cent of Canada’s total boreal forest.

While disturbance is occurring daily, in more than 40 years oil sands mining has disturbed about one hundredth of one per cent of the Canadian boreal forest – some 500 square kilometres.

Since 2001, coordinated efforts between government and industry through Integrated Landscape Management (ILM) activities have reduced land surface disturbance in the region by 20 per cent.

As required by law, and included in all project approvals, reclamation work is ongoing and continuous in the oil sands. All lands disturbed by oil sands will be reclaimed.

Mining is only an option for oil sands that sit less than 75 metres under the surface.

More than 80 per cent of the oil sands will be developed using in-situ technologies.

In-situ projects resemble conventional oil development and do not require tailings ponds, or mine pits.

In-situ operations create linear disturbance of the surface for wellheads. But new technology and processes, including low-impact seismic and directional drilling, are reducing that footprint.

In Alberta, Alberta Environment regulates oil and gas industry water use under the Water Act. Oil and gas companies are subject to the same conditions for use as any other licensed water user in Alberta.

Currently, the oil sands industry draws less than half the water allocation allowed by Alberta Environment from the Athabasca River.

Water allocations are strictly controlled during low flow periods.

More than 80 per cent of water drawn by industry from the Athabasca is recycled.

Non-potable water which is unsuitable for drinking, livestock or irrigation use is used wherever possible for in-situ production.

Alberta Environment prohibits the release of any water to the Athabasca River that does not meet water quality requirements.

RAMP, a multi-stakeholder body, conducts annual monitoring of the river’s fish species, fish habitat and water quality. The monitoring has not detected significant changes to the Athabasca River. www.ramp-alberta.org

Bitumen from exposed oil sands along the river banks has seeped naturally into the Athabasca River as it cut its way through the landscape.

Tailings contain the water, residual bitumen, sand and clay that is left over when the bitumen is separated from the sand.

In the ponds, the solids separate from the water so the water may be recycled into the process again. Of the total water used by oil sands mines, 80 per cent is recycled.

During and after mining, the tailings ponds are reclaimed. No tailings water is released to the Athabasca River or any other watercourse.

The first tailings ponds will be reclaimed in 2010.

80 per cent of the oil sands resource will be developed using in-situ technology which does not require tailings ponds.

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