ALBERTA OIL EXPLOITATION

BY: Naik ParthMadhadi Abhinav

Chavda kishansinh

Where is Alberta oil industry?What is history?

Type of unconventional petroleum deposit

Mixtures of sand, clay, and water, saturated with a dense and extremely viscous form of petroleum 

What is TAR SANDS or OIL SANDS?

Types of extraction1. Surface mining(20%)2. Steam Assisted Gravity Drainage

Extraction of oil

Transported to initial refinery

Hot water treatment

Oil mixture part waste part

Final refinery

http://www.youtube.com/watch?v=nsS9iq0olVI

Refining process

Biggest producer of conventional crude oil, synthetic crude, natural gas and gas products in Canada

12% of total global oil reserves Great impact on the economy of the Alberta and Canada

Transportation to USA, China

Alberta oil statistics

Benefits to the Albertans and Canadians

Highest economic growth in Canada 1,36,000 people are getting job Increased job opportunities New 4, 50,000 jobs in the next 25 years 10 per cent of the oil sands workforce is

Aboriginals Easier and cheaper access to petroleum products Improve the quality of life lowest tax in Canada

Benefits

Contracts of millions of dollars Industry is growing 1.9 billion revenue- year of 2009-10 Contracts with Aboriginal companies was $810 million investment

Upcoming years the investment will reach up to$ 215 billion

Decrease unemployment level Profit utilization in other sectors

Benefits to the Canadian and Alberta government

Exceptionally large quantity of water Climate change and uncontrollable pollution One-third of Canada’s Greenhouse Gas

Emissions (GHGs) Large-scale spatial disturbances to boreal

forest-deforestation, habitat fragmentation, and species loss

Housing costs are growth upwards Social services- not enough to meet the

necessities of population

NEGATIVE ASPECT OF INDUSTRY

Distribution of benefits has been jagged Influence on Wildlife and marine life Northern American tribes affected

Continue……

The extraction in the Arabian Gulf has its own concerns regarding the demand and supply but has not raised major concerns over global warming.

The resources it takes for the extraction of oil in the gulf needs far less resources compared to the one followed in Alberta. And the major extraction is done in deserted parts and does not contribute to the elimination of forest lands.

But the major rising concern would be that of exaggerating the remained oil resources by nearly 40% to possibly avoid losing supply contracts and economy meltdown.

Extraction in Arabian Gulf

Alberta Gulf

Reserve 175 billion barrels 265 billion barrelsGDP 30% of total 45% of totalMethod of extraction Surface mining

SAGDDrilling

Form of oil Tar sand mudArea of operation Forest, lakes desertsEnvironmental impact high lowUse of resources for oil production

High ( water and gas) Low

Alberta vs Gulf

Effect on wild life and human life

very serious Not significant

Effect on marine life high Absolutely zero

In response to the petitions filed against the oil extraction in Alberta, the mayor of the province responded rather unconvincingly.

The statement issued stated that under a certain timeline, all the forest land would be restored and the cost of extraction would be reduced.

The restoration never took off and the timeline proposed was 2050, by which time the environmental scenario will be altered completely.

Cover Up

“STOP THE TARSANDS” campaign http://www.youtube.com/watch?v=LaF5NfCjWHs

Ethical aspect

1. Consumption of water and gas

3-5 barrels of fresh water to one barrel of oil Water per day = 2 millions people

600 million cubic feet of Natural gas= three million Canadian homes

Excessive amount of energy used

Ethical issues

Over 141 mega tones of GHG = twice that produced by all the cars and trucks in Canada

Climate changes

2. Green house effect

Contaminated capital of Canada, with one billion kilograms of emissions

Large-scale spatial instability to Alberta’s northern boreal forest.

Lakes of mining waste (170 square kilometers) = flood Washington, D.C. or downtown Vancouver.

Temporary and localized emission -sulfur dioxide, carbon monoxide and nitrous oxide

3. Environmental Impact

Experiencing unparalleled rates of bile and colon cancer, lupus and other disease

Respiratory diseases  Benzene, toluene, xylene and

formaldehyde - pose health risks to residents and project employees

4.Health deterioration

Most targeted Question of “STOP THE TAR SANDS” campaign is who is the user of oil?

70% - USA What is the benefit for Canadians?

5. Not utilized in Canada

World's leading seven companies (ExxonMobil, Shell, BP, Sinopec, Petro China, Total and Chevron)- $180-billion on the resource in upcoming 20 years

Expand oil extraction from 1.6 million barrels a day to more than 3 million barrels

Communal services, including health care, crime prevention and education at low level

Higher damage to eco-system and humans

6. Expansion

Rush to set up pipelines for supply. Why?

To catch up opportunity prospect competition

Will lead to unwarranted risk and promised danger

7. swiftness

As their cost of production and cost of pollution control is too high

The net effect is Less money profit+ Pollution + Damage to environment

8. The Money

Suppose you are the CEO or the CHIEF head of the Alberta oil industry

You have analyzed both the merits and the demerits

Now, you are in ethical dilemma What will you do?

Case study of Alberta oil industry

THANK YOU