I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.
In my last article I set up the negatives about Oil Sands development. In this article I want to discuss the benefits of exploiting the oil sands and why should be investing the billions while its creating so many problems.
Our society runs on fossil fuels. And we're at a point where everyone wants more. Often times people think of fossil fuels as the means to run our cars, but they are also the components in our cars, computers and cameras. Plastics and other items made from petro-chemicals are everywhere. As a fuel source there have been strides made to find alternatives, but it will take a while for these other fuel sources to be brought up to wide spread use and none of the these alternatives have the versatility of petroleum. And since plastic is everywhere (besides those everyone has cut out of their wallets since the financial crisis) I don't see how we can repudiate fossil fuels anytime soon.
The reserves in the oil sands are huge. According to the Canadian Association of Petroleum Producers - http://www.capp.ca/canadaIndustry/oilSands/Pages/default.aspx - Canada has 179 billion barrels of oil in reserve, 173 of which is in the oil sands . Canada is second only to Saudi Arabia in provable reserves. Canada is already the largest supplier of petroleum to the United States. While most Canadians might snivle and whine about our government, it is measured by the World Bank as one of the most stable and least corrupt in world. The pipelines linking Canada and the USA are safe and well maintained. The shipping lanes in both the Atlantic and the Pacific are well patrolled and no one is hijacking oil tankers in these areas. The development is being undertaken while listening to the concerns of stakeholders. No one is being taken out 'round the shed and shot for their opposition to oil sands development. It is exactly this opposition to the oil sands that demonstrates that Canada has a fair and open democracy. This issue can be and is being discussed openly.
When you're talking billions in investment, this means billions put into jobs. And the jobs run the spectrum. From heavy equipment operators to engineers, from pipefitters to PhD's in chemistry, from administrative assistants to CEO's - its jobs jobs jobs. Until recently Alberta had an unemployment rate of 3.5% and the best labour market participation in Canada. Even now, our unemployment is at 5.8% - the third lowest in Canada (source: http://employment.alberta.ca/cps/rde/xchg/hre/hs.xsl/2599.html ). People flocked to Alberta to take advantage of this boom. The City of Fort McMurray had more Newfoundlanders at one point than any city in Newfoundland! (Newfoundland is the eastermost province in Canada) A journeyman welder in Nova Scotia could make $18 an hour 'back home' while making $40 (plus overtime) in Alberta. From permanent production jobs to temporary construction ones this created a lot of wealth for all Canadians.
An interesting counterpoint to some of the Aboriginal communities talking about the loss of their way of life. A positive program that did come out of the oil sands development was how the companies went into the schools of the Aborginal communities and recruited young people as apprentices in the trades after they finished high school. In the Alberta training system it means that in 4 years you'll be a journeyman(person) and have a ticket to practice your trade to practice your trade anywhere in Canada. Since the crash we haven't seen a giant jump in aborginal males under 30 being unemployed, at least not at rates different than the majority population. So this system of training these young men seems to have worked and has kept a lot employed in a culture that sees chronic unemployment.
With all the public scrutiny the oil sands have received, this means the companies and government are being watched closely. When the companies have violated the rules they have been punished because of it. The duck story I related to you in the last article has a happy ending - the company was charged for the death of the ducks. New policies are being put in place to ensure that the ducks don't take a swim in tailing ponds. The companies are being made to innovate. Instead of using fresh water for the processes they have found salt water aquifiers and used those instead. The water being released back into the water shed is tested to have no impurities. The government is pressuring the companies to invest in carbon reduction strartegies. There are plans to start charging for the carbon admitted under a revised carbon trading scheme. New technologies that don't use water to extract the bituman are being developed. There is a very innovative in-situ project that uses electricity to heat the bitumen rather than water.
Does this get government and the companies off the hook for the problems the development is causing? No. But it does demonstrate that with public pressure change can be made. Should development of a resource we all need be stopped because its 'dirty'? Not when there are other solutions.
Showing posts with label oil sands. Show all posts
Showing posts with label oil sands. Show all posts
Monday, July 20, 2009
Oil Sands vs Tar Sands - the negatives
I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.
The oil sands are a large resource. They can help quench some of this thirst for some of the world for a few years (some say 20, others say a century, but that isn't the point of this article). But a lot of people say the cost is too high. There are grave environmental and social issues surrounding the oil sands. And a lot of people wonder if our thirst for fossil fuels is sustainable or are we just driving ourselves off a cliff by being so reliant on it.
The Environment
The environment is the problem that is getting the most press against oil sands development. Indeed, the problems appear staggering. Vast quantities of water are being used, the air is being pumped fill of greenhouse gasses, toxic waste is being bilged out across the landscape and large portions of boreal forest is being wiped out.
There are two methods to extract the bitumen from the ground. I don't really need to go into them here, but one method is strip mining and the other is in-situ drilling. In-situ drilling involves extracting the bitumen from the soil when it’s too far down to feasibly mine it. The most common method right now is to inject steam into a hole into ground that warms up the bitumen and causes it to flow through another hole. In the strip mining process, the bitumen is taken to a processing centre at the mine and refined using water so that it can flow through a pipeline. (I know I'm grossly simplifying both processes, but the process isn't the point of this article, check Wikipedia or other online resources for a more in depth look at the process if that interests you).
Both of these processes require large volumes of water. There is a fairly large watershed that surrounds the Athabasca Oil Sands, but many critics are saying that too much fresh water is being used. The water is also being pumped back into the water. Although the companies insist that the water has all oil sands impurities removed, there is evidence that this water is not as clean as it should be. The wildlife in this area is suffering and a community downstream of the oil sands development has very high cancer rates. In a time when much of world is suffering from water shortages it seems to be very short sighted to consume water for this industrial process when much of the world is starting to go thirsty. North Alberta (and Northern Canada) does have large fresh water reserves, but many are worried that these are being depleted because of this industrial development.
Most people are concerned about global warming. The citizens of all developed countries are demanding their governments do something about greenhouse gases. It would appear that the Government of Canada and Alberta are ignoring those concerns. Canada did ratify Kyoto in 2005 and agreed to cut its emissions by 5% below the levels it had in 1990 by 2012. In 2004 those levels had grown by 27% from 1990 levels! The energy exports of the oil sands play a role in this as does the extraction process. The machines used to mine the bitumen are the largest land vehicles in the world. They use an incredible amount of energy.
It doesn't help that they are also destroying large tracts of forest in order to mine the bitumen. Animals are losing habitat and the very things that can absorb the excess CO2 are being bulldozed. If you look at photos of an oil sands mine, you will see a very ugly strip mine. This was once very pristine and untouched wilderness, one of the last few places on the planet. Now the mines are an industrial wasteland.
Adding to this industrial wasteland is the toxic waste that comes from converting the bitumen into a product that can flow through a pipeline. This waste is being deposited into large tailing ponds. The tailing ponds have existed since they started mining the bitumen back in the late 60's. But they have recently gained much infamy when 500 migrating ducks landed in one two years ago. One duck managed to survive. Last year, a machine operator had his machine slide into a tailing pond. He didn't survive.
Social Issues
Such large operations do not come without its social costs. Before the oil sands, this area was home to a relatively high number of aboriginals who were still able to practice their traditional way of life. As the price of oil went up in the last few years, the development of the oil sands went at a feverish pitch. The City of Fort McMurray exploded overnight as people came searching for $40/hour jobs that a lot of people thought required little education. The infrastructure just wasn't ready for it.
The Aboriginals have been abused throughout Canadian history. From taking their land through unfair treaties to abhorrent living conditions on their reserves, the treatment of aboriginals is a black mark for Canada. There is a movement to correct these injustices, but it is taking a long time. Many of the aboriginal communities in the Fort McMurray region are very isolated. But they are feeling the pinch of the development. Water quality has deteriorated. The animals that they hunted to make a living off of are disappearing. The young people are leaving the reserves to try and cash in on the economic boom. Social networks are breaking down. Alcoholism and drug abuse are flourishing in these isolated communities. Some of the most vocal critics of the oil sands have been the aboriginal communities because they feel (yet again) that no one is listening to their concerns.
In 5 years (2001 - 2006) the population of the Fort McMurray grew from 41,000 to 51,000. This number does not count the large amount of temporary workers that were living at the construction camps between 2002 and 2007. A 25% spurt in population would be difficult for any community to handle. Fort McMurray went from being a sleepy little backwater mining/oil and gas town to being the economic hot spot in Canada. People came because they heard there were high paying jobs that required little education. There was certainly a demand for heavy equipment operators and other labourers, but there was also a need for skilled trades such as pipefitters and welders. People from across Canada flocked to Fort McMurray looking for these high paying jobs. It was the same as a gold rush. Everyone wanted to get their piece of the pie. Some were successful, others were not.
The town couldn't keep up. There was one main road in the town and the town is separated by a river. There is one bridge across this river. Tens of thousands of people needed to cross this river every day. There was a shortage of housing. People came to Fort McMurray expecting their accommodation to be paid for. This was true for some (particularly the skilled trades) but many did not get housing with their jobs and had to share a room for a $1000 month in sub-standard conditions. All forms of infrastructure creaked and cracked under the strain of a 25% population boom.
In any economic boom, you have your 'losers'. People were flocking to town expecting to strike it rich and of course not everyone can. I was working in Edmonton during the boom at a social agency. I had a call from a social worker in Fort McMurray asking if I could help a guy who saw it all go bad up there. The man was cabinet maker from Nova Scotia who had epilepsy. He tried his hand as a heavy equipment operator. But once he had a grand maul seizure behind a rather expensive piece of equipment he was blacklisted throughout town and his driver’s license was taken away. Someone who has no resources just can’t make a living as a dishwasher in Fort McMurray because of the high rents. He had to come back to Edmonton. He was able to succeed in Edmonton, since rents were lower and he could actually make a living as a dishwasher. In a town that is rich in money but short on any form of recreation, drugs and alcohol fills the gap for many people. This is another unfortunate reality of the boom.
Sustainable?
There are many people who question our need for fossil fuels and wonder if all this drilling and mining is sustainable for the planet. Many new technologies are in development that will decrease our reliance on fossil fuels. Unlike traditional drilling, oil sands require a very high capital cost. So a lot of money is being spent to develop this resource. The pace of development was incredible when oil prices climbed towards 150 USD/barrel. Prices are now at around 40. The development in the oil sands screeched to a halt. Current operations are still ongoing but new developments have all been shelved. Does it make sense to develop a resource that relies so heavily on commodity prices? Can this resource sustain an economy that is dependent on it? With all the problems outlined, should we continue to invest millions into something in which the negatives may outweigh the positives?
This was not an exhaustive list of problems. Indeed, much has been written about the problems the oil sands have created. I haven’t even touched on the role of government in this resource. This article sets up the discussion. My next article will discuss the positives of oil sands development. I hope you enjoyed reading this rather large article (I don’t think I’ve written something this long since University!) and stay tuned for the next one.
The oil sands are a large resource. They can help quench some of this thirst for some of the world for a few years (some say 20, others say a century, but that isn't the point of this article). But a lot of people say the cost is too high. There are grave environmental and social issues surrounding the oil sands. And a lot of people wonder if our thirst for fossil fuels is sustainable or are we just driving ourselves off a cliff by being so reliant on it.
The Environment
The environment is the problem that is getting the most press against oil sands development. Indeed, the problems appear staggering. Vast quantities of water are being used, the air is being pumped fill of greenhouse gasses, toxic waste is being bilged out across the landscape and large portions of boreal forest is being wiped out.
There are two methods to extract the bitumen from the ground. I don't really need to go into them here, but one method is strip mining and the other is in-situ drilling. In-situ drilling involves extracting the bitumen from the soil when it’s too far down to feasibly mine it. The most common method right now is to inject steam into a hole into ground that warms up the bitumen and causes it to flow through another hole. In the strip mining process, the bitumen is taken to a processing centre at the mine and refined using water so that it can flow through a pipeline. (I know I'm grossly simplifying both processes, but the process isn't the point of this article, check Wikipedia or other online resources for a more in depth look at the process if that interests you).
Both of these processes require large volumes of water. There is a fairly large watershed that surrounds the Athabasca Oil Sands, but many critics are saying that too much fresh water is being used. The water is also being pumped back into the water. Although the companies insist that the water has all oil sands impurities removed, there is evidence that this water is not as clean as it should be. The wildlife in this area is suffering and a community downstream of the oil sands development has very high cancer rates. In a time when much of world is suffering from water shortages it seems to be very short sighted to consume water for this industrial process when much of the world is starting to go thirsty. North Alberta (and Northern Canada) does have large fresh water reserves, but many are worried that these are being depleted because of this industrial development.
Most people are concerned about global warming. The citizens of all developed countries are demanding their governments do something about greenhouse gases. It would appear that the Government of Canada and Alberta are ignoring those concerns. Canada did ratify Kyoto in 2005 and agreed to cut its emissions by 5% below the levels it had in 1990 by 2012. In 2004 those levels had grown by 27% from 1990 levels! The energy exports of the oil sands play a role in this as does the extraction process. The machines used to mine the bitumen are the largest land vehicles in the world. They use an incredible amount of energy.
It doesn't help that they are also destroying large tracts of forest in order to mine the bitumen. Animals are losing habitat and the very things that can absorb the excess CO2 are being bulldozed. If you look at photos of an oil sands mine, you will see a very ugly strip mine. This was once very pristine and untouched wilderness, one of the last few places on the planet. Now the mines are an industrial wasteland.
Adding to this industrial wasteland is the toxic waste that comes from converting the bitumen into a product that can flow through a pipeline. This waste is being deposited into large tailing ponds. The tailing ponds have existed since they started mining the bitumen back in the late 60's. But they have recently gained much infamy when 500 migrating ducks landed in one two years ago. One duck managed to survive. Last year, a machine operator had his machine slide into a tailing pond. He didn't survive.
Social Issues
Such large operations do not come without its social costs. Before the oil sands, this area was home to a relatively high number of aboriginals who were still able to practice their traditional way of life. As the price of oil went up in the last few years, the development of the oil sands went at a feverish pitch. The City of Fort McMurray exploded overnight as people came searching for $40/hour jobs that a lot of people thought required little education. The infrastructure just wasn't ready for it.
The Aboriginals have been abused throughout Canadian history. From taking their land through unfair treaties to abhorrent living conditions on their reserves, the treatment of aboriginals is a black mark for Canada. There is a movement to correct these injustices, but it is taking a long time. Many of the aboriginal communities in the Fort McMurray region are very isolated. But they are feeling the pinch of the development. Water quality has deteriorated. The animals that they hunted to make a living off of are disappearing. The young people are leaving the reserves to try and cash in on the economic boom. Social networks are breaking down. Alcoholism and drug abuse are flourishing in these isolated communities. Some of the most vocal critics of the oil sands have been the aboriginal communities because they feel (yet again) that no one is listening to their concerns.
In 5 years (2001 - 2006) the population of the Fort McMurray grew from 41,000 to 51,000. This number does not count the large amount of temporary workers that were living at the construction camps between 2002 and 2007. A 25% spurt in population would be difficult for any community to handle. Fort McMurray went from being a sleepy little backwater mining/oil and gas town to being the economic hot spot in Canada. People came because they heard there were high paying jobs that required little education. There was certainly a demand for heavy equipment operators and other labourers, but there was also a need for skilled trades such as pipefitters and welders. People from across Canada flocked to Fort McMurray looking for these high paying jobs. It was the same as a gold rush. Everyone wanted to get their piece of the pie. Some were successful, others were not.
The town couldn't keep up. There was one main road in the town and the town is separated by a river. There is one bridge across this river. Tens of thousands of people needed to cross this river every day. There was a shortage of housing. People came to Fort McMurray expecting their accommodation to be paid for. This was true for some (particularly the skilled trades) but many did not get housing with their jobs and had to share a room for a $1000 month in sub-standard conditions. All forms of infrastructure creaked and cracked under the strain of a 25% population boom.
In any economic boom, you have your 'losers'. People were flocking to town expecting to strike it rich and of course not everyone can. I was working in Edmonton during the boom at a social agency. I had a call from a social worker in Fort McMurray asking if I could help a guy who saw it all go bad up there. The man was cabinet maker from Nova Scotia who had epilepsy. He tried his hand as a heavy equipment operator. But once he had a grand maul seizure behind a rather expensive piece of equipment he was blacklisted throughout town and his driver’s license was taken away. Someone who has no resources just can’t make a living as a dishwasher in Fort McMurray because of the high rents. He had to come back to Edmonton. He was able to succeed in Edmonton, since rents were lower and he could actually make a living as a dishwasher. In a town that is rich in money but short on any form of recreation, drugs and alcohol fills the gap for many people. This is another unfortunate reality of the boom.
Sustainable?
There are many people who question our need for fossil fuels and wonder if all this drilling and mining is sustainable for the planet. Many new technologies are in development that will decrease our reliance on fossil fuels. Unlike traditional drilling, oil sands require a very high capital cost. So a lot of money is being spent to develop this resource. The pace of development was incredible when oil prices climbed towards 150 USD/barrel. Prices are now at around 40. The development in the oil sands screeched to a halt. Current operations are still ongoing but new developments have all been shelved. Does it make sense to develop a resource that relies so heavily on commodity prices? Can this resource sustain an economy that is dependent on it? With all the problems outlined, should we continue to invest millions into something in which the negatives may outweigh the positives?
This was not an exhaustive list of problems. Indeed, much has been written about the problems the oil sands have created. I haven’t even touched on the role of government in this resource. This article sets up the discussion. My next article will discuss the positives of oil sands development. I hope you enjoyed reading this rather large article (I don’t think I’ve written something this long since University!) and stay tuned for the next one.
Oil Sands vs Tar Sands - Introduction
I posted a series of 3 blogs on the Oil Sands at www.titulia.com back in February of March this year. I origanily wrote this for an international audience, so it might seem basic to some.
Canada is a big country and Alberta is just one province . Some of you might not even know it exists. But lately Alberta has been receiving a lot of press. There has been a National Geographic article about it, several books, newspaper ads and other media campaigns as well a lot of lobbying in Ottawa and Washington and beyond. The oil sands are located in the North West corner of this province. The activity is centred around a town called Fort McMurray. This area isn't considered Northern Canada yet, but its still pretty isolated. Until recently. If you are unsure what the oil sands are, I recommend taking a look at the wikipedia article: http://en.wikipedia.org/wiki/Athabasca_Oil_Sands . This will give you a better idea of the scope of this article and why it is becoming contentious.
I was born in Alberta. I was raised here. My father earned a living from the petrochemical industry. I have traveled across the country and around the world. Alberta is still home. I work for the provincial government as a career counselor. I am not expert on this issue, but I have looked at both sides of the debates fairly extensively. As an Albertan, I have a stake in this issue. As this becomes an international issue I think it is important for Albertans to discuss this maturely on the world stage. There is a lot of attention turning onto Alberta and we need to be ready to answer some sticky questions.
The oil and gas industry has been key part of the Alberta economy since 1947. Natural gas still forms the bulk of our energy exports. But the oil sands have grabbed a lot of attention. It is one of the most extensive and accessible petroleum reserves world left in the world. It lies in a country with very stable political structures. Canada is only a country of 33 million people (with over a territory stretching over 9 million sq km) but it lies right beside a country with over 300 million. Regardless of the green movement, we are still going to need petroleum products for the medium term future. Perhaps we'll need less, but we're still going to need it. The oil and gas industry is a part of Alberta culture and it makes this province one of the richest in Canada.
There is right now a war of terminology going on between oil sands vs. tar sands. For those promoting the development of this resource, they call it oil sands, because that is basically was bitumen is - oil stuck in dirt. For those against the development, they like to call it tar sands - tar is a very ugly and noxious substance. It is dangerous, its not something you ever want to touch. But it is man made, it cannot occur naturally. So for the sake of this article, I am going to use the term oil sands to describe this resource. Perhaps this exposes my bias too prominently, but we all have bias. I'm just not going to make you drink it(neither my opinion or the bitumen).
I am going to write 2 more parts to this article. One will be the negative consequences of digging (and drilling) for the oil sands. There has been quite a bit written about the negatives, but I'll do my best to sum up the arguments. The second part will be the positives of oil sands development. Some might see this as Alberta government propaganda, but this my point of view, the Alberta government has taken no part in the commissioning of this article. Besides, I'm so far down the gov't totem pole that I have to walk to work. If needed, I'll end this series off with a conclusion.
I don't have a lot of references to give you. Most of my knowledge is gained by the daily media (The CBC, Edmonton Journal, Globe and Mail, National Post and sometimes CTV when I'm bored). Here is a website with a positive spin on the subject: http://www.oilsandsdiscovery.com/oil_sands_story/story.html . Here is a website from the nay side: http://www.tarsandswatch.org/ . Both were located through a Google search so I cannot endorse either website. But this allows the reader to gain perspective on both sides of the issue.
Canada is a big country and Alberta is just one province . Some of you might not even know it exists. But lately Alberta has been receiving a lot of press. There has been a National Geographic article about it, several books, newspaper ads and other media campaigns as well a lot of lobbying in Ottawa and Washington and beyond. The oil sands are located in the North West corner of this province. The activity is centred around a town called Fort McMurray. This area isn't considered Northern Canada yet, but its still pretty isolated. Until recently. If you are unsure what the oil sands are, I recommend taking a look at the wikipedia article: http://en.wikipedia.org/wiki/Athabasca_Oil_Sands . This will give you a better idea of the scope of this article and why it is becoming contentious.
I was born in Alberta. I was raised here. My father earned a living from the petrochemical industry. I have traveled across the country and around the world. Alberta is still home. I work for the provincial government as a career counselor. I am not expert on this issue, but I have looked at both sides of the debates fairly extensively. As an Albertan, I have a stake in this issue. As this becomes an international issue I think it is important for Albertans to discuss this maturely on the world stage. There is a lot of attention turning onto Alberta and we need to be ready to answer some sticky questions.
The oil and gas industry has been key part of the Alberta economy since 1947. Natural gas still forms the bulk of our energy exports. But the oil sands have grabbed a lot of attention. It is one of the most extensive and accessible petroleum reserves world left in the world. It lies in a country with very stable political structures. Canada is only a country of 33 million people (with over a territory stretching over 9 million sq km) but it lies right beside a country with over 300 million. Regardless of the green movement, we are still going to need petroleum products for the medium term future. Perhaps we'll need less, but we're still going to need it. The oil and gas industry is a part of Alberta culture and it makes this province one of the richest in Canada.
There is right now a war of terminology going on between oil sands vs. tar sands. For those promoting the development of this resource, they call it oil sands, because that is basically was bitumen is - oil stuck in dirt. For those against the development, they like to call it tar sands - tar is a very ugly and noxious substance. It is dangerous, its not something you ever want to touch. But it is man made, it cannot occur naturally. So for the sake of this article, I am going to use the term oil sands to describe this resource. Perhaps this exposes my bias too prominently, but we all have bias. I'm just not going to make you drink it(neither my opinion or the bitumen).
I am going to write 2 more parts to this article. One will be the negative consequences of digging (and drilling) for the oil sands. There has been quite a bit written about the negatives, but I'll do my best to sum up the arguments. The second part will be the positives of oil sands development. Some might see this as Alberta government propaganda, but this my point of view, the Alberta government has taken no part in the commissioning of this article. Besides, I'm so far down the gov't totem pole that I have to walk to work. If needed, I'll end this series off with a conclusion.
I don't have a lot of references to give you. Most of my knowledge is gained by the daily media (The CBC, Edmonton Journal, Globe and Mail, National Post and sometimes CTV when I'm bored). Here is a website with a positive spin on the subject: http://www.oilsandsdiscovery.com/oil_sands_story/story.html . Here is a website from the nay side: http://www.tarsandswatch.org/ . Both were located through a Google search so I cannot endorse either website. But this allows the reader to gain perspective on both sides of the issue.
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