Question
How much natural gas is required to produce a bbl of oil from the Canadian Oil Sands using SAGD as compared with the natural gas usage in mining?
Answer
It takes about 29 cubic metres (1,030 cubic feet)*of natural gas to produce one barrel of bitumen from in-situ projects such as Steam Assisted Gravity Drainage (SAGD). Emerging technologies are aimed at reducing this level. Many in-situ producers install cogeneration units to produce steam and generate electricity for more efficient use of the natural gas.
Oil sands mining operations typically use under 15 cubic metres (520 cubic feet)* to extract one barrel of bitumen (excluding upgrading). Processes such as hydro-transport and low energy extraction have reduced energy use in mining and extraction by about 45 per cent per barrel since 1990. Low energy extraction typically operates at 35 to 40°C versus the 80°C processes employed by the industry in the 1980s.
*Source: Canadian Oil Sands Supply Costs and Development Projects. Canadian Energy Research Institute. November 2008
Question
What percentage of Canada's greenhouse gas emissions are released into the air from the oil sands?
Answer
Total GHG emissions from the oil sands industry are approximately 33 million tonnes per year. This is equivalent to about 5 per cent of Canada’s GHG emissions, 0.5 per cent of GHG emissions of the United States and 1/1000th per cent of global GHG emissions. Average GHG emissions per barrel in the oil sands industry has decreased by about 39 per cent since 1990. Approximately half of this reduction is due to technology advancements and energy efficiency improvements, and the balance is primarily due to an increasing percentage of oil sands production being refined in the U.S. rather than in Canada.
Map of Greenhouse Gas Emissions across North America
Question
What are oil sands companies doing to stop carbon emissions?
Answer
Several of the companies are looking at Carbon Capture and Storage (CCS) for new mining and in situ projects and for upgraders. They continue to invest in technologies to reduce carbon emissions and will achieve reductions per barrel produced. They acknowledge that there is a global consensus that carbon dioxide has become the world’s biggest environmental challenge and they are prepared to do their part to achieve reductions.
Question
I have heard that oil sands companies use a lot of water in their production. Is that true?
Answer
Yes, a significant amount of water is used in the production of synthetic crude from oil sands; in the case of Syncrude, it takes about two barrels of oil to produce one barrel of synthetic crude. However, they are working hard to reduce their usage and to expand recycling of water; today, Syncrude recycles 88 per cent of the water it uses. Combined, the oil sands companies cannot withdraw in excess of 3 per cent of the annual flow of the Athabasca River, making it by far one the least utilized rivers in all of Alberta.
Question
Both the United States and Canada are beginning to implement regulations or caps on carbon emissions. How will this affect oil companies?
Answer
Today the oil sands represent about 50 per cent of the production of oil in Canada. However, because conventional sources of oil are drying up, the oil sands represent 97 per cent of our future reserves of oil. Unless Canada utilizes this vast resource, we will be dependent on foreign oil to drive our cars and fly on airplanes. So, if we continue to develop the oil sands, emissions will grow; however, the industry is working hard to reduce the amount of emissions per barrel produced in order to minimize the impact on our environment.
Question
How large are the oil sands in Alberta?
Answer
Alberta ranks second, after Saudi Arabia, in terms of proven global crude oil reserves. In 2008, Alberta’s total oil reserves were 171.8 billion barrels, or about 13 percent of total global oil reserves (1,342 billion barrels). Alberta accounts for an overwhelming majority (about 97 per cent) of Canada’s oil reserves.
