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Sustainable Energy Solutions © 2005 Pembina Institute www.pembina.org Oil Sands Fever Slide Show The Environmental Implications of Canada’s Oil Sands Rush.

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Presentation on theme: "Sustainable Energy Solutions © 2005 Pembina Institute www.pembina.org Oil Sands Fever Slide Show The Environmental Implications of Canada’s Oil Sands Rush."— Presentation transcript:

1 Sustainable Energy Solutions © 2005 Pembina Institute Oil Sands Fever Slide Show The Environmental Implications of Canada’s Oil Sands Rush Version 6, Nov. 21, 2005

2 Alberta is home to nearly all of Canada’s oil sands. Alberta is home to nearly all of Canada’s oil sands.

3 © 2005 The Pembina Institute Sustainable Energy Solutions  These enormous deposits make up about 23% of the province. It’s an area of 149,000 square kilometres of boreal forest. © 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission An Industrial Landscape

4 © 2005 The Pembina Institute Sustainable Energy Solutions  About one-third of all oil currently produced in Canada comes from the oil sands.  Using today’s technology, 174 billion barrels could be recovered.  It’s predicted that ultimately about 315 billion barrels will be recovered.  About one-third of all oil currently produced in Canada comes from the oil sands.  Using today’s technology, 174 billion barrels could be recovered.  It’s predicted that ultimately about 315 billion barrels will be recovered. Photo: Dan Woynillowicz, the Pembina Institute 1/3 of Canada’s Oil Production

5 © 2005 The Pembina Institute Sustainable Energy Solutions  In 1995, government and industry set a goal of producing one million barrels per day by This was achieved in  The new goal: five million barrels per day by  In 1995, government and industry set a goal of producing one million barrels per day by This was achieved in  The new goal: five million barrels per day by Photo: David Dodge, the Pembina Institute Five Million Barrels a Day

6 © 2005 The Pembina Institute Sustainable Energy Solutions Producing Oil from Tarry Sands  Oil sands are composed of sand, silt, clay, water and about 10% bitumen.  Oil sands are either surface mined or the bitumen is extracted in situ (in place).  Oil sands are composed of sand, silt, clay, water and about 10% bitumen.  Oil sands are either surface mined or the bitumen is extracted in situ (in place). Photo: Chris Evans, the Pembina Institute

7 © 2005 The Pembina Institute Sustainable Energy Solutions Surface Mining Production  To produce one barrel of oil:  4 tonnes of material is mined.  barrels of water are used to extract the bitumen.  Enough natural gas to heat 1.5 homes for a day is required.  To produce one barrel of oil:  4 tonnes of material is mined.  barrels of water are used to extract the bitumen.  Enough natural gas to heat 1.5 homes for a day is required. © 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

8 © 2005 The Pembina Institute Sustainable Energy Solutions In-Situ Production  Over 90% of the bitumen can only be extracted in situ, whereby high- pressure steam is injected to remove the bitumen from the sand.  This technique requires four times as much natural gas as surface mining and leaves a significant mark on the landscape.  Over 90% of the bitumen can only be extracted in situ, whereby high- pressure steam is injected to remove the bitumen from the sand.  This technique requires four times as much natural gas as surface mining and leaves a significant mark on the landscape. Photo: TerraServer.Com

9 © 2005 The Pembina Institute Sustainable Energy Solutions Upgrading Bitumen to Oil  To be refined into end products, bitumen must be upgraded to synthetic crude oil.  75% per cent of each barrel of oil is used for transportation fuel.  To be refined into end products, bitumen must be upgraded to synthetic crude oil.  75% per cent of each barrel of oil is used for transportation fuel. © 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

10 © 2005 The Pembina Institute Sustainable Energy Solutions Climate Change Emissions Soaring  Canada is one of the most-energy intensive countries in the world.  Under the Kyoto agreement, we agreed to reduce our greenhouse gas (GHG) emissions to 6% below 1990 levels by  Canada’s emissions are now 24% above 1990 levels.  Canada is one of the most-energy intensive countries in the world.  Under the Kyoto agreement, we agreed to reduce our greenhouse gas (GHG) emissions to 6% below 1990 levels by  Canada’s emissions are now 24% above 1990 levels. Photos: Dan Woynillowicz and David Dodge, the Pembina Institute

11 © 2005 The Pembina Institute Sustainable Energy Solutions Greenhouse Gas Emissions x2  The oil sands are the single largest factor in the growth in emissions.  Even in the best-case scenario, emissions will double by 2015 in the oil sands industry.  The oil sands are the single largest factor in the growth in emissions.  Even in the best-case scenario, emissions will double by 2015 in the oil sands industry. © 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

12 © 2005 The Pembina Institute Sustainable Energy Solutions Boreal Forest Impacts  The Canadian boreal forest is one of the few remaining wilderness forests on Earth.  Canada’s boreal forest contains 35% of the world’s wetlands and is home to thousands of plants and animals.  It also stores carbon, regulates climate and filters water.  The Canadian boreal forest is one of the few remaining wilderness forests on Earth.  Canada’s boreal forest contains 35% of the world’s wetlands and is home to thousands of plants and animals.  It also stores carbon, regulates climate and filters water. Photo: David Dodge, the Pembina Institute and Courtesy of CPAWS

13 © 2005 The Pembina Institute Sustainable Energy Solutions  Surface mining operations divert rivers, drain wetlands and strip soils.  Existing, approved and planned projects will impact an area three times the size of Edmonton.  The future “reclaimed” landscape will be radically different from the natural mosaic of boreal wetlands and forest.  Surface mining operations divert rivers, drain wetlands and strip soils.  Existing, approved and planned projects will impact an area three times the size of Edmonton.  The future “reclaimed” landscape will be radically different from the natural mosaic of boreal wetlands and forest. A Growing Boreal Footprint Photo: David Dodge, the Pembina Institute

14 © 2005 The Pembina Institute Sustainable Energy Solutions Downstream, Up North  The Athabasca River flows from the glaciers of Jasper National Park to the Peace- Athabasca Delta, the largest boreal delta in the world.  Oil sands operations threaten the river’s health and integrity.  The Athabasca River flows from the glaciers of Jasper National Park to the Peace- Athabasca Delta, the largest boreal delta in the world.  Oil sands operations threaten the river’s health and integrity. Photo: David Dodge, the Pembina Institute

15 © 2005 The Pembina Institute Sustainable Energy Solutions Troubled Waters  Current oil sands operations remove three times as much water as the City of Calgary uses each year.  Some of the water used for extraction at the mines cannot be recycled: it ends up in tailing ponds. These massive structures are growing and pose a serious reclamation challenge.  Oil sands operations also lower water levels in freshwater aquifers, streams, lakes, ponds and wetlands.  Current oil sands operations remove three times as much water as the City of Calgary uses each year.  Some of the water used for extraction at the mines cannot be recycled: it ends up in tailing ponds. These massive structures are growing and pose a serious reclamation challenge.  Oil sands operations also lower water levels in freshwater aquifers, streams, lakes, ponds and wetlands. Photo: Chris Evans, the Pembina Institute

16 © 2005 The Pembina Institute Sustainable Energy Solutions Air Pollution  Alberta is now the industrial air pollution capital of Canada.  Although the industry has reduced the volume of the pollutants it emits, it is still much higher than conventional oil production.  Alberta is now the industrial air pollution capital of Canada.  Although the industry has reduced the volume of the pollutants it emits, it is still much higher than conventional oil production. Photo: David Dodge, the Pembina Institute

17 © 2005 The Pembina Institute Sustainable Energy Solutions Increasing Emissions  There has been an increase in acidifying emissions and air toxins.  The air quality in the region will be further degraded as more projects are approved.  There has been an increase in acidifying emissions and air toxins.  The air quality in the region will be further degraded as more projects are approved. Photo: Dan Woynillowicz, the Pembina Institute

18 © 2005 The Pembina Institute Sustainable Energy Solutions Government Generosity  Ten years ago, the federal and provincial governments reduced tax and royalty rates to support development of the oil sands.  While production increased 133% between 1995 and 2004 total royalties declined by 29%.  1995 royalty paid: $1.60 per barrel  2004 royalty paid: $0.50 per barrel  Ten years ago, the federal and provincial governments reduced tax and royalty rates to support development of the oil sands.  While production increased 133% between 1995 and 2004 total royalties declined by 29%.  1995 royalty paid: $1.60 per barrel  2004 royalty paid: $0.50 per barrel Photo: David Dodge, the Pembina Institute

19 © 2005 The Pembina Institute Sustainable Energy Solutions 1% Return, 100% Write-off  The provincial government collects a 1% royalty on gross revenue until project payout. After that a 25% royalty on net revenue is collected.  The federal government provides a 100% write-off for all capital costs on new oil sands mines or expansions.  Production is up and revenue collection is down.  The provincial government collects a 1% royalty on gross revenue until project payout. After that a 25% royalty on net revenue is collected.  The federal government provides a 100% write-off for all capital costs on new oil sands mines or expansions.  Production is up and revenue collection is down. Photo: David Dodge, the Pembina Institute

20 © 2005 The Pembina Institute Sustainable Energy Solutions Government Support Not Needed  The oil sands are now extremely profitable and will remain so as long as oil is over $25/barrel.  This preferential royalty and tax regime is outdated, unnecessary and is, in effect, subsidizing soaring greenhouse gas emissions.  The oil sands are now extremely profitable and will remain so as long as oil is over $25/barrel.  This preferential royalty and tax regime is outdated, unnecessary and is, in effect, subsidizing soaring greenhouse gas emissions. Photo: David Dodge, the Pembina Institute

21 © 2005 The Pembina Institute Sustainable Energy Solutions Vision for a Sustainable Future  The oil sands need to be developed within the context of a transition to an economy based on sustainable energy.  We need to manage oil sands development to ensure irreversible environmental change does not occur.  The oil sands need to be developed within the context of a transition to an economy based on sustainable energy.  We need to manage oil sands development to ensure irreversible environmental change does not occur. Photo: David Dodge, the Pembina Institute

22 © 2005 The Pembina Institute Sustainable Energy Solutions Vision: Protect the Climate This plan would encompass  Responsible use of energy resources – energy efficiency, energy conservation, renewable and non-renewable energy, along with incentives for responsible consumption.  Climate protection – using the best technology to reduce emissions and achieving carbon-neutral oil sands operations by This plan would encompass  Responsible use of energy resources – energy efficiency, energy conservation, renewable and non-renewable energy, along with incentives for responsible consumption.  Climate protection – using the best technology to reduce emissions and achieving carbon-neutral oil sands operations by Photo: David Dodge, the Pembina Institute

23 © 2005 The Pembina Institute Sustainable Energy Solutions A Vision of Sustainability  Protect the environment  Establish limits to protect health and environmental integrity.  Protect an area of intact boreal forest.  Set clear reclamation expectations.  Create a new fiscal plan – eliminating federal tax subsidies and maximizing revenue from taxes and royalties.  Invest a portion of the wealth in a sustainable energy fund.  Protect the environment  Establish limits to protect health and environmental integrity.  Protect an area of intact boreal forest.  Set clear reclamation expectations.  Create a new fiscal plan – eliminating federal tax subsidies and maximizing revenue from taxes and royalties.  Invest a portion of the wealth in a sustainable energy fund. Photo: David Dodge, the Pembina Institute

24 © 2005 The Pembina Institute Sustainable Energy Solutions  For  For copies of our report: Oil Sands Fever: The Environmental Implications of Canada’s Oil Sands Rush, Rush, to watch Oil Sands Fever Fever the video or to get copies of this slide show visit our website. Photo by Dan Woynillowicz, the Pembina Institute Sustainable Energy Solutions


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