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.
Where are the oil sands located in Canada?
[6] [26] Most of the Canadian oil sands are in three major deposits in northern Alberta. They are the Athabasca-Wabiskaw oil sands of north northeastern Alberta, the Cold Lake deposits of east northeastern Alberta, and the Peace River deposits of northwestern Alberta.
What is different about Alberta’s oil sands?
Oil Sands 101: What’s Different About Alberta’s Oil Sands? Alberta has about 10 per cent of the world’s oil reserves but the oil located here is much more difficult to recover than elsewhere in the world. That’s because the low-grade crude oil, called bitumen, is thick and viscous.
Where do Alberta’s oil resources come from?
Unless otherwise stated, sources are from the Government of Alberta. Where applicable, external sources have been noted and linked. Alberta's oil sands has the fourth-largest oil reserves in the world, after Venezuela, Saudi Arabia and Iran. Alberta's oil sands’ proven reserves equal about 165.4 billion barrels (bbl).
How does oil sands production affect Canada's climate?
In Canada, oil sands production in general, and in-situ extraction, in particular, are the largest contributors to the increase in the nation's greenhouse gas emissions from 2005 to 2017, according to Natural Resources Canada (NRCan). [8] The exploitation of bituminous deposits and seeps dates back to Paleolithic times. [9]
Where are Alberta Oil Sands located?
The Canadian oil sands (or tar sands) are a large area of petroleum extraction from bitumen, located primarily along the Athabasca River with its centre of activity close to Fort McMurray in Alberta, approximately 400 km northeast of the provincial capital, Edmonton.
Why is there a lot of oil in Alberta?
%99 of Alberta's oil is derived from oil sands. Alberta has one of the highest oil reserves in the world because of the oil sands, mostly in the Athabasca region. Alberta is rich with oil sands because a massive inland sea once covered the area completely.
When did oil sands in Alberta start?
Commercial-scale production from Alberta's oil sands started in 1967 when the Great Canadian Oil Sands (now Suncor Energy) started operation.
Are oil sands good for the environment?
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.
How many years of oil is left in the world?
about 47 yearsThe world has proven reserves equivalent to 46.6 times its annual consumption levels. This means it has about 47 years of oil left (at current consumption levels and excluding unproven reserves).
How long will the oil sands last?
Investment in existing projects has stalled, and banks are refusing to fund new ones. Nevertheless, oil production there is expected to continue for at least two more decades.
What is oil sands used for?
Oil sand is a naturally occurring mixture of sand, clay or other minerals, water and bitumen, which is a heavy and extremely viscous oil. It must be processed before it can be used by refineries to produce fuels such as gasoline and diesel.
Where does the oil from Alberta go?
Almost three-quarters of Alberta's oil exports to the U.S. are still destined for the Midwest re-gion. Smaller amounts are sent to the U.S. Gulf Coast, East Coast, Rocky Mountain and West Coast regions.
Does Alberta own its oil?
Today, the Alberta Energy Company is the second-largest oil-and-gas producer in Canada, but the province privatized it in 1993, leaving Albertans with no ownership stake in their oil industry or the corresponding wealth that goes with that.
Who has the best oil in the world?
Tapis. Tapis, a type of crude found only in Malaysia, is considered the best quality oil in the world. Light and sweet, it's benchmark traded in Singapore and coveted for its remarkably low sulphur content (0.04 percent) and low density of between 43 and 45° API.
Does the US use Canadian tar sands oil?
America imports some tar sands oil, but expanding U.S. dependence on this polluting fuel is not in our national interest. It's a bad product, and we don't need more of it. And energy companies angling for bigger profits shouldn't play the victim.
How much of Canada's oil is from oil sands?
Canada's oil sands are the third largest proven oil reserve in the world. The oil sands are the third-largest proven oil reserve in the world, representing 166.3 billion barrels (or 97%) of Canada's 171 billion barrels of proven oil reserves (technical overview).
Why are oil prices so high in Alberta?
Alberta had based its budget last year on an average WTI price of $46 per barrel, but oil prices shot up with a post-pandemic surge in demand and rose further due to supply constraints after the Russian invasion.
Will oil boom again in Alberta?
Oil production is at an all-time high and revenues are soaring. Stephanie Thomas reports. Daily crude oil production in Alberta has increased in 2022 amid high demand and high price environment, according to economists.
How much oil does Alberta produce?
Alberta reports $3.9B surplus thanks to skyrocketing oil and gas prices.
Does Alberta still produce oil?
In 2021, production increased to 69.6 thousand cubic metres (103 m3/d), or 437.7 thousand barrels per day (103 bbl/d), in response to higher oil prices.
Why is oil sands important to Alberta?
The responsible development of oil sands is a key driver of Alberta’s and Canada’s economy. It creates jobs and tax revenue for government which support the social programs and capital infrastructure projects we rely on.
How much of Alberta's oil sands is mineable?
About 4,800 km² of surface mineable area make up roughly 3.4% of all Alberta oil sands. AER has established regulatory boundaries for each of Alberta’s oil sands areas.
What is oil sands mine reclamation and disturbance tracking by year?
Oil sands mine reclamation and disturbance tracking by year is a sustainability indicator found in the oil sands information portal. It offers:
What is the Alberta Land Stewardship Act?
The Alberta Land Stewardship Act supports the Land-use Framework, designed to encompass provincewide strategies to manage the province's land and natural resources. It aims to achieve Alberta's long-term economic, environmental and social goals.
What are oil sands indicators?
Oil sands facts, statistics and indicators are subject to change as new information becomes available. Oil sands sustainability indicators highlight trends across economic, environmental and social topics in Alberta’s oil sands areas. Unless otherwise stated, sources are from the Government of Alberta. Where applicable, external sources have been ...
How much oil does Alberta have?
Alberta's oil sands’ proven reserves equal about 165.4 billion barrels (bbl). Crude bitumen production (mined and in situ) totaled about 2.8 million barrels per day (bbl/d) in 2017.
What is the energy sector in Alberta?
Alberta's upstream energy sector includes oil sands, conventional oil and gas, and mining and quarrying. Capital investment in this sector:
Why did oil sands increase?
Oil sands productions expand and prosper as the global price of oil increased to peak highs because of the Arab oil embargo of 1973, the 1979 Iranian Revolution, the 1990 Persian Gulf crisis and war, the 11 September 2001 attacks, and the 2003 invasion of Iraq.
What is oil sand?
Oil sands are either loose sands or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen, a dense and extremely viscous form of petroleum . Significant bitumen deposits are reported in Canada, Kazakhstan, Russia, and Venezuela.
How are oil sands extracted?
Except for a fraction of the extra-heavy oil or bitumen which can be extracted by conventional oil well technology, oil sands must be produced by strip mining or the oil made to flow into wells using sophisticated in-situ techniques. These methods usually use more water and require larger amounts of energy than conventional oil extraction. While much of Canada's oil sands are being produced using open-pit mining, approximately 90% of Canadian oil sands and all of Venezuela's oil sands are too far below the surface to use surface mining.
What is the Western Canadian Sedimentary Basin?
The oil sands of the Western Canadian Sedimentary Basin (WCSB) are a result of the formation of the Canadian Rocky Mountains by the Pacific Plate overthrusting the North American Plate as it pushed in from the west, carrying the formerly large island chains which now compose most of British Columbia. The collision compressed the Alberta plains and raised the Rockies above the plains, forming mountain ranges. This mountain building process buried the sedimentary rock layers which underlie most of Alberta to a great depth, creating high subsurface temperatures, and producing a giant pressure cooker effect that converted the kerogen in the deeply buried organic-rich shales to light oil and natural gas. These source rocks were similar to the American so-called oil shales, except the latter have never been buried deep enough to convert the kerogen in them into liquid oil.
Why is Venezuela's oil production declining?
Despite the fact that the Orinoco oil sands contain extra-heavy oil which is easier to produce than Canada's similarly sized reserves of bitumen, Venezuela's oil production has been declining in recent years because of the country's political and economic problems, while Can ada's has been increasing .
What are the two countries with the largest oil reserves?
Geology. See also: Petroleum Geology, Oil reserves in Canada, and Oil reserves in Venezuela. The world's largest deposits of oil sands are in Venezuela and Canada . The geology of the deposits in the two countries is generally rather similar.
How deep are the Orinoco deposits?
In Venezuela, the Orinoco Belt oil sands range from 350 to 1,000 m (1,000 to 3,000 ft) deep and no surface outcrops exist.
Where is the oil sands site in Alberta?
A swath of boreal forest is stripped away to reveal the bitumen-laced ground at the Fort Hills Suncor oil sands site near Fort McKay , Alberta. The area will soon become a gaping strip mine as the bitumen is trucked away for processing into petroleum products. Photograph By Ian Willms.
Who owns the oil sands?
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. What’s shipped is diluted bitumen, not crude oil. Bitumen is too thick to pump, so light crude oil and chemicals are added.
Where are tailings ponds?
Large enough to be seen from space, tailings ponds in Alberta’s oil sands region are some of the biggest human-made structures on Earth. They contain a toxic slurry of heavy metals and hydrocarbons from the bitumen separation process. Photograph By Ian Willms. By Stephen Leahy. Photographs by Ian Willms.
What is the fifth largest oil producing country in the world?
If Alberta , with its population of four million people, were a country, it would be the fifth largest oil-producing nation. While it produces conventional oil, most comes from the Alberta oil sands, the world’s third largest proven oil reserve at 170 billion barrels.
Why do oil companies cut lines in the forest?
The oil industry uses cut lines in the forest like this one to search for underground resources and build infrastructure for future development.
How long has Canada produced oil?
Canada has produced oil since the 1850s. Oil is the country’s biggest export earner, and although production has boomed even more in the U.S. lately, thanks to shale fracking, oil is a much bigger part of the Canadian economy. The vast majority of Canada’s oil is produced in Alberta.
Where is the majority of Canada's oil produced?
The vast majority of Canada’s oil is produced in Alberta. Perhaps surprisingly, the oil sands don’t actually have any oil per se. Instead, a huge area about the size of Florida or Wisconsin north and east of Edmonton, Alberta, contains a tarry bitumen mixed with sand that is mined from underneath the boreal forest.
How did Alberta's oil sands form?
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.
When did the oil sands start to work?
Large-scale experimentation at Bitumount proved that the method could work, but first commercial development of the oil sands didn’t happen until 1967 with the opening of the Great Canadian Oil Sands project – now Suncor.
How did oil get trapped in the Athabasca River?
Over millions of years, that oil became trapped in thick layers of sand. Gradually, lighter hydrocarbons evaporated or were consumed by bacteria , leaving bitumen and water trapped in the sand. The area was then covered by glacial debris, but oil sands outcrops along the Athabasca River showed where deposits lay buried.
Who discovered oil sands?
Oil Sands Discovery and Early Use. In 1717, fur trader Henry Kelsey was recorded as the first European to have seen the oil sands after Waupisoo of the Cree people brought a sample to the Hudson’s Bay Company trading post in the Athabasca region. At that time, bitumen’s primary use had nothing to do with energy.
Who recognized the economic potential of oil sands?
The economic potential of the oil sands was recognized by Charles Mair in 1908, who wrote, “That this region is stored with a substance of great economic value is beyond all doubt, and, when the hour of development comes, it will, I believe, prove to be one of the wonders of Northern Canada.
Who discovered the process of separating bitumen from sand?
Scientist Karl Clark of the Alberta Research Council pioneered a method for separating bitumen from sand. This process was key to the eventual development of large-scale oil sands mining projects.
Where are oil sands located in Canada?
Where are oil sands located in Alberta? Canada’s oil sands industry is primarily located in three regions within Alberta and Saskatchewan’s provinces, around the Athabasca River basin, Cold Lake and Peace River. Together, they cover a combined area of over 142,000 square kilometres.6.
How much oil does Alberta have?
Alberta has oil reserves in the ground consisting of approximately 170 billion barrels of oil.3 The industry currently pumps out around 2.8 million barrels per day.4
What is the most destructive oil operation in the world?
Canada’s oil sands in Alberta have been described as the “world’s most destructive oil operation” for their environmental impact.1 However, the oil sands contribute significantly to the Canadian economy, and they employ over 100,000 people in the sector.2 But, its environmental impact certainly dwarfs the economic upside.
How much sludge is in oil sands?
These are stored in tailings ponds that have now accumulated nearly 1.3 trillion litres of sludge.
How does the Athabasca Chipewyan affect Canada?
It also affects Canada’s carbon emissions.
What is the problem with mining oil sands?
One major problem with mining oil sands is that for every barrel of oil extracted, over a barrel and a half of a thick toxic sludge is produced. Even worse, these ponds are now leaking their toxic by-product into the local environment.
How many acres of trees have been cleared by oil sands?
But, critics say that the industrial development of oil sands and forest fires have cleared or degraded almost two million acres of trees over the past 20 years.7.
How did oil sands form?
The oil of the oil sands was formed from the marine organisms that fell to the bottom of the vast sea that once covered ancient Alberta. As the Earth itself shifted and re-formed, that oil. migrated north where it became trapped in the huge amounts of quartz sand left behind by the rivers that once drained into the ancient sea.
What was left behind in the Athabasca sands?
As glaciers moved over the sand beds, debris was left behind, and the oil sands were obscured by layers of rock, clay and muskeg, leaving only the outcroppings along the Athabasca and Peace rivers to reveal ...
How big is the Canadian oil sands?
The Syncrude mine is now the largest mine (by area) in the world, with mines potentially covering 140,000 km 2 (54,000 sq mi). (Although there is oil underlying 142,200 km 2 (54,900 sq mi), which may be disturbed by drilling and in situ extraction, only 4,800 km 2 (1,900 sq mi) may potentially be surface mined, and 904 km 2 (349 sq mi) has to date been mined.)
Where did the Athabasca oil sands come from?
The Athabasca oil sands first came to the attention of European fur traders in 1719 when Wa-pa-su, a Cree trader, brought a sample of bituminous sands to the Hudson's Bay Company post at York Factory on Hudson Bay where Henry Kelsey was the manager. In 1778, Peter Pond, another fur trader and a founder of the rival North West Company, became the first European to see the Athabasca deposits after exploring the Methye Portage which allowed access to the rich fur resources of the Athabasca River system from the Hudson Bay watershed.
What is the only large oil sands reservoir in the world that was suitable for large-scale surface mining?
In 2006 the Athabasca deposit was the only large oil sands reservoir in the world which was suitable for large-scale surface mining, although most of this reservoir can only be produced using more recently developed in-situ technology.
Why are birds dying in the Athabasca River?
Wildlife living near the Athabasca River have been greatly impacted due to pollutants entering the water system. An unknown number of birds die each year. Particularly visible and hard hit are migrating birds that stop to rest at tailing ponds. There have been numerous reports of large flocks of ducks landing in tailing ponds and perishing soon after. Data has been recorded since the 1970s on the number of birds found on tailing ponds.
Where is the Athabasca deposit?
The Athabasca deposit is the largest known reservoir of crude bitumen in the world and the largest of three major oil sands deposits in Alberta, along with the nearby Peace River and Cold Lake deposits (the latter stretching into Saskatchewan ).
Where was the first oil sands mine?
As a result of the easy accessibility, the world's first oil-sands mine was in the Athabasca oil sands. Commercial production of oil from the Athabasca oil sands began in 1967, with the opening of the Great Canadian Oil Sands (GCOS) plant in Fort McMurray.
Why are Indigenous people against pipeline development?
Historically, many Indigenous groups have opposed pipeline development for two primary reasons: 1) the inherent environmental risks associated with transporting harmful oil and gas products, and 2) failure by the federal government to properly consider and mitigate Indigenous groups' concerns regarding resource development on their lands. For instance, many Indigenous groups rely heavily on local wildlife and vegetation for their survival. Increased oil production in Canada requires greater oil transport through their traditional lands, which poses serious threats to the survival and traditional way of life of Indigenous groups, as well as the safety and preservation of the surrounding ecosystems. As well, First Nation's in Alberta have called particular attention to adverse health impacts related to oil sands emissions, asserting that the water quality testing for specific chemicals (heavy metals) has been insufficient.
How much of Canada's boreal forest is disturbed by oil sands?
Since 1967, the total amount of boreal forest disturbed by oil sands mining is just 0.03 per cent of Canada’s entire boreal forest. The Government of Alberta requires companies to remediate and reclaim all disturbed land after the oil sands have been extracted by either through mining or in situ operations. Reclamation means returning the land ...
How big is the oil sands footprint?
In fact, the environmental footprint of active mining is about 895 square kilometres, slightly larger than the city of Calgary.
How is bitumen extracted from oil sands?
These bitumen deposits are extracted in place ( in situ) using a steam process and two wells.
Where is sand and water deposited?
The leftover sand, water and clay is deposited in temporary storage ponds, from where up to 90 per cent of the process water can be recycled back into the operations. Once the sand and clay settles in the tailings pond, it is stored and used later when the land is ready to be reclaimed.
Why can't you extract bitumen from the ground?
That’s because the low-grade crude oil, called bitumen, is thick and viscous. It has a tar-like consistency and is almost solid at room temperature, which means it can’t be extracted from the ground using traditional drilling techniques .
How has the US shale revolution impacted Alberta?
The US shale revolution of the past decade has dramatically shifted the prospects for Alberta’s crude producers . US refineries have invested heavily in the addition of secondary conversion capacity, improving profitability when taking in heavy, sour feedstock. At the same time, US crude production has become increasingly light, creating a significant mismatch between the US refinery feedstock grade and domestic crude production.
Where is oil produced in North America?
There are two regions in North America where production is rapidly rising - light oil from the Permian Basin, primarily located in West Texas , and heavy sour crude from the Alberta oil sands. Production from the Permian and the oil sands each topped 3 million bbl/day in 2018, and is expected to keep growing.
What is CLS oil?
CLS is a basket of light sweet crude priced out of Edmonton, Alberta. WCS represents the benchmark for diluted bitumen produced out of the oil sands while CLS more closely resembles WTI specifications. Each trades in reference to the WTI benchmark price. THREE DRIVERS OF PRICE DIFFERENCES.
Why do refineries blend?
Refineries typically blend a variety of input streams in order to achieve a desired grade of feedstock. Depending on the complexity of the refinery, each facility will have a different limit for the volume of heavy sour crude it can process.
What is Brent crude?
Brent represents the international benchmark price, used as a reference for about two-thirds of the world’s crude trade.
How much oil is in the Keystone pipeline?
TransCanada's Keystone XL pipeline is designed to transport 830,000 bbl/day of crude from Alberta directly to the US Gulf Coast, should the line ever be completed.
Is Canadian oil good for the Gulf Coast?
Unfortunately, although Canadian heavy oil has excellent marketability in the Gulf Coast, the pipeline network to the USGC is limited at best, and unlikely to get better in the near term. That forces barrels onto rail cars and drives up the price discounts in Alberta.
Overview
- The responsible development of oil sands is a key driver of Alberta’s and Canada’s economy. It creates jobs and tax revenue for government which support the social programs and capital infrastructure projects we rely on. Oil sands facts, statistics and indicators are subject to change as new information becomes available. Oil sands sustainability i...
Geology
History
Cost of oil sands petroleum-mining operations
Nomenclature
Production
The world's largest deposits of oil sands are in Venezuela and Canada. The geology of the deposits in the two countries is generally rather similar. They are vast heavy oil, extra-heavy oil, and/or bitumen deposits with oil heavier than 20°API, found largely in unconsolidated sandstones with similar properties. "Unconsolidated" in this context means that the sands have high porosity, no si…
Methods of extraction
The exploitation of bituminous deposits and seeps dates back to Paleolithic times. The earliest known use of bitumen was by Neanderthals, some 40,000 years ago. Bitumen has been found adhering to stone tools used by Neanderthals at sites in Syria. After the arrival of Homo sapiens, humans used bitumen for construction of buildings and waterproofing of reed boats, among other uses. In ancient Egypt, the use of bitumen was important in preparing mummies.
Energy balance
In their May 2019 comparison of the "cost of supply curve update" in which the Norway-based Rystad Energy—an "independent energy research and consultancy"—ranked the "worlds total recoverable liquid resources by their breakeven price", Rystad reported that the average breakeven price for oil from the oil sands was US$83 in 2019, making it the most expensive to produce, compared to all other "significant oil producing regions" in the world. The International Energy Ag…