This review outlines
the Canadian Oil Sands industry and provides links to information sources on
the economic and environmental impact of the industry, production statistics
and project updates. Although this review deals primarily with Canada, it is important to note that oil sands are found elsewhere in the world, Venezuela for example is estimated to have reserves of over 300 million barrels.
Overview
Once a footnote in the story of world oil production, Canada's oil sands are part of the solution to declining conventional oil reserves elsewhere in the world. Canada has over 170 billion barrels of oil recoverable with today's technology, making it second only to Saudi Arabia as an oil resource country. There are an estimated 2.5 trillion barrels of bitumen in the Canadian resources and it is possible to produce 2.5 million barrels of oil per day for over 200 years. That is more than enough to supply all of Canada's needs and make a significant contribution to America, China and other oil importers for generations to come.
History
As with many of Canada's natural resources, oil sands were discovered by Aboriginal people who used the tar-like substance that flowed from the banks of the Athabasca River on hot summer days to waterproof their clothing and canoes. Commercial development of the deposits commenced in the 1960s when Suncor Energy Inc. (then Great Canadian Oil Sands) constructed a mine and upgrader north of Fort McMurray. In the 1970's Syncrude Canada Ltd. commenced operations. In situ production commenced in 1985 when commenced Imperial Oil Limited started the Cold Lake project and Petro-Canada began operations at Wolf Lake. A timeline of oil sands developments can be found in the history section of the Athabasca Oil Sands website.
Laws and Regulations
As with any industry, especially one as potentially lucrative for both government and companies, there are laws and regulations governing how oil sands developers and producers must conduct their business. Some regulations are general in nature such as the Mines and Minerals Act, which governs the management and disposition of rights in Crown owned mines and minerals among other things or the Petroleum Royalty Regulation, while others are more industry specific and include:
Employment
In the study The Decade Ahead, the Petroleum Human Resources Council of Canada estimates that 8,000 new positions will be created during the next ten years leading to shortages in skilled workers and possible supply gaps. There are currently and will continue to be many employment opportunities for those seeking work in Alberta's Oil Sands.
- December 2006)
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