News Release

November 29, 2005: "Black Gold": managing the environmental impacts of oil sands development

Canada

"Black Gold": managing the environmental impacts of oil sands development

VANCOUVER, November 29, 2005 (GLOBE-Net) - Alberta's oil sands have never been more valuable. Investment is now flowing into the region faster than the sticky oil flows out. The industry spends billions of dollars per year, bringing rich government royalties and thousands of jobs. But as production is expected to double in the next 10 years, a sustainable economic and environmental strategy will be needed. The Alberta Energy and Utilities Board estimates the oil sands contain 175 billion barrels of extractable crude oil given current prices and technology, placing Canada second in the world behind Saudi Arabia.

When mined from the surface, it takes an average of two tons of sand to produce one barrel of bitumen. When the sands are trapped below the surface - as is the case for 90% of the oil sands in Alberta - they are extracted "in situ’ (Latin for ’in-state’) using hot water or steam, requiring large energy inputs. Once bitumen is isolated, more energy is required to refine it into a higher quality crude oil.

Much of this energy comes from natural gas, and the use of the relatively clean heating gas to produce a much ’dirtier’ fuel is a controversial issue. As a positive step, industry efforts have led to a 26% reduction in C02 emissions per barrel produced since 1994, with more improvements expected.

"With concerted effort and the technology in play, we will be taking on the environmental challenge aggressively," said a Suncor spokesman in a National Energy Board report. But he conceded that "the economic growth we are experiencing means a rising greenhouse gas production profile."

It is clear that oil sands will remain a key economic driver for Canada. But looming on the horizon is the need for Canada to meet its emissions reduction targets under the Kyoto protocol. Sound environmental management of oil sands extraction will be a priority for both federal and provincial governments in the next decade. In this context, the demand for technologies to minimize the environmental impacts of extraction emerges as a real stimulus for the development of new technologies and emissions reduction solutions by Canadian firms.

Emissions

For producers and the environment alike, reducing the energy inputs in oil sands production is important. Greenhouse gas emissions, water usage, and land degradation are the primary issues facing the industry, and technology is playing a large part in resolving them.

However, the pace of production growth has continued to accelerate, and as a report by the Pembina Institute notes, "The oil sands are the single largest contributor to GHG emissions growth in Canada."

Emissions can be lowered by the use of low Nitrous Oxide burners, sour water treaters, and flue gas desulphurization. Nuclear power is under consideration, and 'clean coal’ and gasification technologies could present environmentally friendly energy options.

Other examples of gas emission reduction opportunities include:

 

improvements in cogeneration in oil sands and gas plants;

leak detection programs for pipelines and gas plants;

reduction in methane emissions from natural gas dehydrators;

vent gas capture and storage;

power generation with micro-turbines; and

improved energy efficiency of pumps, compressors etc. in field operations.

(Source: National Energy Board)

Water

Depending on the type of operation, 2.5 to 4.0 units of water are required for each unit of bitumen. In situ methods require freshwater to separate the bitumen from the sand, run general plant functions, and dilute bitumen for pipeline transport. Water is also used to replace the bitumen extracted from the ground, which removes large quantities of water from the hydrologic cycle. The National Energy Board estimates a loss of one barrel of water for every barrel of oil recovered using one steam-driven technique.

Some producers are working together to reduce the impact of water use on local watersheds, and Suncor and others have examined their water usage across all operations to identify potential savings. Suncor is now recycling 90% of the water it uses.

Other methods to conserve and reduce the total use of fresh water by the oil sands industry include:

 

minimizing impacts to sediment and water quality

conditions in receiving waters by implementing runoff containment and control measures at the plant site and well pads, such as berms, drainage ditches and retention ponds;

developing a non-thermal in situ recovery method, using solvents, to assist in the extraction of bitumen, which could reduce the need for water treating water from basal aquifers for use in the extraction process;

re-injecting used water into basal water sands; and recapturing and recycling of water from the mine tailings.

(Source: National Energy Board)

Mine tailings, by-products that consist of a mixture of materials, are also a concern, and must be stored indefinitely in secure ponds or basins. Technology that involves consolidating these tailings has been unable to resolve the storage issue, and it is estimated that Suncor and Syncrude alone will produce one billion cubic metres of tailings by 2020. There have been extensive but so far unsuccessful efforts to reduce or eliminate the production of tailings from extraction methods.

New extraction technologies such as pulse technology and vapour recovery extraction (VAPEX), are also emerging, and the demand for cost-reduction methods will be persistent.

Planning for Sustainability

Much of the attention on the oil sands has been focused on the enormous economic benefits, and investment growth has been pursued aggressively – some would argue at an environmental cost. However, corporate producers associated with oil sands development fully realize that environmental sustainability is the key to future success of their industry. Consequently they have been taking many steps in the right direction.

Canada faces the task of reducing our GHG emissions by almost one-third by 2012 if we are to meet our Kyoto targets. Oil sands producers will be expected to contribute to these cuts. The question now before regulators and corporate leaders is how to reconcile the emissions reduction imperative with continued growth in demand for new energy supplies. Technology can play a role, but corporate environmental responsibility and government regulation will also be needed. It is a challenge that requires leadership at all levels. But it is a challenge we must meet.

 

Source: GLOBE-Net

http://www.globe-net.ca/search/display.cfm?NID=1568&CID=2

Topic(s): Energy News, Industry News Releases

Posted By EcoBC

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