Oil Sands Facts

Facts at a Glance

(PDF version)

Overview

  • Canada’s oil reserves are the third largest in the world behind Saudi Arabia then Venezuela.
  • At 170 billion barrels, oil sands represent 97 per cent of Canada’s total oil reserves.

Economic Contribution

Investments and Jobs*

  • As a result of new oil sands investment, employment across Canada is expected to grow from 75,000 jobs in 2010 to 905,000 in 2035.
  • Oil sands investment will generate $2.1 trillion in economic activity across Canada over the next 25 years (2010 to 2035).
  • Oil sands development will generate an estimated $105 billion provincial taxes, $311 billion in federal taxes and $350 billion in royalties from 2010 to 2035.
  • For each oil sands-related job created in Alberta, about 1 indirect job and 1 induced job will be created in the rest of Canada.

* Source: CERI, 2011

 

Community Investment in 2010

  • Regional Aboriginal Companies – value of contracts in 2010 – $1.3 B
  • Regional Aboriginal Companies – value of contracts 1998 – 2010 – $5 B
  • Aboriginal employees in permanent jobs in 2010 – 1,700+
  • Contributions to regional Aboriginal communities in 2010 – $5.5 M
  • Aboriginal  and Metis/non status consultation funding 2010 – $12.3 M

Concerns, Challanges & Responses

Issue: Air

Emissions

  • The oil sands currently account for less than five per cent of Canada’s greenhouse gas (GHG) emissions. This is less than 0.1 per cent of total global emissions.
  • The oil sands industry has reduced its emissions intensity (a measure of greenhouse gas emissions per barrel of oil produced) by more than 29 per cent since 1990.
  • Alberta was the first jurisdiction in North America to legislate industrial greenhouse gas emission reductions.
  • So far, companies have made 2.6 million tones of reductions – the equivalent of taking 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.

Issue: Air

Air Quality

  • Air quality around oil sands operations is better than all North American cities reviewed by the Alberta Clean Air Strategic Alliance.
  • A 10-year study by the University of Alberta’s Department of Public Health Services found that there has been little to no change in the concentrations of various air pollutants in the oil sands region.
  • From a health point of view, these communities are breathing better quality air than those in many major cities.
  • Alberta air quality standards are the most stringent in Canada.
  • Air quality in Fort McMurray is monitored around the clock. Results are available at www.wbea.org/content/view/56/1111.
  • 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.

Issue: Land

Surface Disturbance

  • Oil sands are located below the surface of 140,200 square kilometers of land, 4.5 per cent of Canada’s total boreal forest.
  • Mineable oil sands only exist under 4,802 square kilometers, 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 0.019 per cent of the Canadian boreal forest – some 602 square kilometers.

Issue: Land

Reclamation

  • As required by law, and included in all project approvals, all lands disturbed by oil sands operations must be, and will be, reclaimed.
  • Reclamation work is ongoing and continuous in the oil sands - to date, some 67 square kilometers of land has been reclaimed.

Extraction

  • Mining is only an option for oil sands that sit less than 75 meters under the surface.
  • More than 80 per cent of the oil sands will be developed using in-situ (drillable) technologies.
  • In-situ projects resemble conventional heavy oil development and do not require mine pits or tailings ponds.
  • In-situ operations use low-impact seismic and directional drilling to reduce surface disturbance - typically, less than 5 per cent of an in-situ lease area is disturbed.

Issue: Water

Water use

  • In Alberta, Alberta Environment regulates 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.
  • Today, oil sands mining projects use less than one per cent of the water that flows in the Athabasca River, and some 85 per cent of the water that is used is recycled.
  • That figure is projected to grow to just more than two per cent of the river’s flow if all the oil sands mining projects that are currently planned go ahead.
  • Water allocations are strictly controlled by Alberta Environment during low flow periods.
  • More than 80 per cent of water drawn by industry from the Athabasca is recycled.
  • In-situ production uses non-potable or saline water which is unsuitable for drinking, livestock or irrigation. Up to 95 per cent of this water is recycled.

Issue: water

Water quality

  • 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 associated with oil sands development. http://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 Ponds

  • 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, more than 85 per cent is recycled.
  • No tailings water is released into the Athabasca River or any other watercourse.
  • The first tailings pond has been taken out of service and will be reclaimed by the end of 2010.
  • Eighty per cent of the oil sands resource will be developed using in-situ technology which does not require mines or tailings ponds.

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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