What are the oil sands?
The
oil sands are a
mixture of sand, silt, clay, water and approximately 10
to 12 per cent bitumen, which is a tar-like substance that
can be upgraded into synthetic crude oil. The Alberta oil sands
encompass
approximately 178
billion barrels of recoverable bitumen. In its
underground state, bitumen is the consistency of thick tar or peanut butter-giving
rise to the nickname "tar sands."
The technologies used to mine, extract and upgrade the bitumen to
synthetic
crude oil make this product among some of the most environmentally
costly sources of transport fuel in the world. In
Alberta, the upgrading process occurs either in Fort McMurray or in the
Fort
Saskatchewan region of central Alberta.
Where
oil sands are within a kilometre of the surface, they are strip-mined
from open
pits. However, most of Alberta's oil sands are much deeper than this. In
order
to access
this oil, advanced drilling techniques send steam or
solvents into the reserves until the bitumen is
heated up and can flow to a well where it is pumped up to the surface.
This is
called in situ (Latin for "in place") extraction. Right now, the
majority of
Alberta's oil comes from oil sands mining, but as these reserves are
drained,
in situ production will become the dominant
extraction method over the coming decades.
A typical oil
sands mine project in Alberta requires billions of dollars in capital
investment and has a lifespan
of over 50 years with an operations workforce of over a
thousand people.
In 2004, over one million barrels (160,000m3)
were
produced per day. By 2015,
oil sands production is expected to more than double to about
2.2 million barrels (340,000m3)
per day.
Oil
sands occupy over 140,000
km2 of Alberta - an area which is larger
than the state of Florida. Currently 54,000
km2 of lands in Alberta have been leased
for oil sands development with more lands leased in government "land
sales"
every two weeks.
Alberta's major oil and gas industries are one of the key reasons Canada cannot commit to the IPCC targets for developed countries. As easily accessible conventional sources of oil are depleted worldwide, there is an increasing focus on unconventional sources of oil, such as the oil sands. Canada is experiencing a significant economic boom that is in large part driven by the natural resources sectors. These resources include oil, natural gas and coal, and the majority of these fossil fuel industries are situated in Western Canada.
FACT: Approximately 3,000 km2 of boreal forest has been leased for oil sands mining in the last 40 years of oil sands mining operations in Alberta. However, as of January 2008, not a single hectare of land had been returned to its pre-development state.
The Alberta oil sands are a major source of employment, investment returns and government revenue, and have stood as the backbone of Alberta's economy for close to a decade. Although developing the oil sands can bring tremendous wealth to Albertans, it also creates significant economic, social and environmental challenges. Greenhouse gas pollution is one such challenge.
In-situ (in-place) oil sands extraction is more energy-intensive than mining. Removing trees, natural carbon sinks, to extract oil from the oil sands is often excluded from greenhouse gas emissions estimates
Heat-trapping gases are only one of the challenges posed by developing the oil sands. Indigenous people, such as the Mikisew Cree, who inhabited the are for many generations, may be experiencing health problems because of water contamination. Photo: David Dodge, The Pembina Institute
FACT: "Roughly 500 square kilometres of land surrounding current oil sands operations are at risk from acidifying emissions from current and approved projects. This will increase to 1,000 km2 if all planned projects go forward." (See: Environmental Impact Assessment Appendices for the Muskeg River Mine Expansion, Appendix 2-9, Table 27 and Table 28, pp. 107 and 108).Canada, with only 0.5 per cent of the world's population, contributes 2 per cent of global GHG emissions. According to a 2008 Canadian Association of Petroleum Producers (CAPP) study, oil sands projects account for 5 per cent of Canada's greenhouse gas emissions and this is projected to increase to 12 per cent. At a time when the world is looking to Canada to reduce its emissions, the oil sands represent the largest single source of rising emissions in the country. Extracting the oil sands is Canada's biggest barrier to reducing greenhouse gas pollution.
In 2007, Alberta was the largest GHG emitter in Canada, generating 33.2 per cent (245.7 Mt) of the country's GHG emissions, with only 10.5 per cent of the total population. Also in 2007, Alberta provided a remarkable 14.2 per cent of Canada's GDP and 64 per cent of Canada's primary energy production - a share that is mainly due to oil sands production, coal- and gas-fired electricity and transportation. This focus on fossil fuel production resulted in the province emitting 70.7 tonnes of GHG emissions per person per year. Alberta is proud of having the first provincial climate change plan in Canada. Unfortunately, the provincial plan relies on intensity-based targets (for example, the amount of carbon dioxide produced per Gross Domestic Product output) and not absolute targets. The plan, therefore, does nothing to reduce absolute emissions before 2020.
Alberta is also proud to be the first jurisdiction in Canada to put a price on carbon emissions. Unfortunately, the price only applies to large emitters and the overall goal is to reduce industrial greenhouse gas pollution intensity (rather than absolute emissions). In the case of the oil sands, where industrial production is continuing to increase, reductions in GHG intensity do not deliver reductions in actual emissions.
In its 2008 climate change plan, the provincial government acknowledged that it expects Alberta's total greenhouse gas pollution to continue increasing until 2020, despite most scientists calling for an immediate reduction of greenhouse gas pollution.
We still do not know the full extent of the damage being caused by emissions due to the oil sands. Neither oil companies nor the Government of Alberta report the amount of emissions released from forests destroyed in the process of developing oil extraction sites. This means that greenhouse gas emissions from Alberta's oil sands operations are worse than reported.
Regulations that came into effect on July 1, 2007 require facilities that emit more than 100,000 tonnes of GHGs annually to reduce their emissions "intensity" by 12 per cent. In order achieve this, industries can:
- improve operations so that emissions are immediately reduced;
- buy carbon offset credits from other sectors or industries that have reduced their GHG emissions;
- contribute financially to the Climate Change and Emissions Management Fund, which will fund strategic projects and technology towards reducing provincial GHG emissions; and/or
- buy or use emission performance credits (EPCs), which are generated by facilities that have exceeded the 12 per cent mandatory intensity reduction. They can be sold to other facilities that cannot meet the reduction target on their own or they can be banked for future use.
Nationally, the federal government has also set out a plan for reducing emissions. Industries will be required to reduce emissions intensity by 18 per cent below 2006 levels by 2010 and achieve a two per cent annual reduction thereafter.
GHG intensity is a ratio of GHG emissions per unit of economic activity (e.g. GDP or unit of production such as a barrel of oil). The problem with measuring GHG intensity rather than total GHG emissions is when economies and industries grow, GHG intensity can decline as GHG emissions continue to rise. Even when they are met, emissions intensity targets do not ensure that total GHG emissions actually go down, which is the only solution to climate change. For example, between 1990 and 2004 Canadian industry improved its GHG intensity by 6 per cent while its emissions grew by 13 per cent.
This means that in 2020, total reductions are forecast to put Canadian GHG emissions at 20 per cent below 2006 levels. Note that the IPCC is calling for developed nations to use 1990 not 2006 emission levels as a baseline for emissions reduction. Canadian GHG emissions are up more than 25 per cent since 1990.
Continued growth in the oil sands puts Canada's target for reducing greenhouse gas emissions beyond reach. Photo: David Dodge, The Pembina Institute
Our reliance on fossil fuels and inability to reduce GHG emissions in Alberta has made Canada look bad on the international stage, particularly at the international climate change negotiations in Copanhagen, Denmark that took place in December 2009. Many countries looked to Canada to commit to a 25 to 40 per cent reduction in total emissions (not emission 'intensity') from 1990 levels by 2020, as well as significant funding commitment and obligation.
FACT: GHG emissions from oil sands mining and upgrading are about five times greater than those from conventional light/ medium crude oil production.
Since Alberta is responsible for 33.2 per cent of Canada's greenhouse gas emissions and has the strongest economy in Canada, we are in a unique position take scientific, technological and industrial leadership. By creating opportunities for industrial innovation, development of clean energy technology and environmental stewardship at a provincial level, we have the chance to build our economy while addressing climate change. Solutions include phasing out coal plants, expanding renewable energy sources and public transit, and creating new efficiency standards for vehicles and buildings.
In this guide:
