The Oil and Gas Industry in Alberta: The Oilsands

Map Courtesy of CAPP and Calgary Herald

Examples of Proposed Tar Sands Investments

Project Location Cost Bbl/day Start-UpNexen Long Lake Ft McM. $3 Bil. 70K Cdn Nat Res. Horizon $8.5 B 232KShell Cda Jackpine Ft. McM. $2 B 70KTrueNorth Fort Hills $3.5BAlbion Muskeg R. Ft. McM. $1.8 B 155KConocoPhillips Surmont Ft. McM $1B 110KSyncrude Phase 3 Ft. McM $5.7BHusky Tucker Cold Lake $0.5B 35K 2006Husky Sunshine Ft. McM$2.5B 200K 2008----------------------------------------------------------------------------------Suncor Millenium Ft. McM $3.4B already

The Importance of the Oil Sands• Similar reserves to Saudi Arabia. Will replace

conventional oil in Canada. A source for export to USA (recall USA concerns over security of supply). Will produce ½ of Cdn oil by 2005 or 06.

• Along with rising price of oil and natural gas, is an engine driving the current Alberta boom

• The new “megaprojects”: Numerous new plants or expansions are planned, each at several billion dollars before cost over-runs. Total = $63 Billion

• Major impact on Ft. McMurray (boom town again) and nearby First Nations

Importance of Oil Sands (cont’d)

• Not just Ft. McMurray; Cold Lake, too. Also. Undeveloped near Peace River.

• Major emissions of “greenhouse gases”, which contribute to global warming.

• Major user of water (esp. steam injection)

• Uses much energy to produce oil

Drag Line Machine

Digger, Drag Line Bucket & Bus

Buffalo Sculpture near Syncrude Mine, North of Ft. McMurray