| The petroleum-drenched oil sands of Alberta | | | | After several weeks of soaking, the oil-water |
| (Canada) are the greatest oil deposits of | | | | mixture is pumped to the surface, where it is |
| North America, according to a recent | | | | processed like bitumen collected through |
| international press report. At a time, when | | | | strip mining. While the Alberta oil sands |
| world oil output is lagging behind the global | | | | promise a potential oil source for future, |
| demand for oil and security concerns hinder | | | | environmental concerns threaten to become a |
| efforts to increase crude oil production, the | | | | constraint at some stage in future. However, |
| Canadian oil sands offer a silver lining in | | | | the federal and the provincial governments |
| the cloud and may attract major oil and gas | | | | are confident that environmental regulations |
| exploration companies interested in making | | | | would not block the operation and further |
| money by separating the oil sands from the | | | | expansion of the project, despite Canada's |
| earth. Rising international crude prices are | | | | pledge to cut emissions under the Kyoto |
| reported to have made the work on the oil | | | | Protocol global warming agreement. The prize |
| sands viable. It reportedly costs $12-15 a | | | | emanating from the project is so tempting - |
| barrel to produce crude oil out of the oil | | | | for the oil companies as well as for a |
| sands. Since the current international prices | | | | government eager to earn tax revenue - that |
| for crude oil stand around $60 a barrel and | | | | it may not be possible for any one to stop |
| there seems to be hardly any likelihood of | | | | the project. Another concern is about the |
| the price falling below $40 - 50 a barrel in | | | | supply of labour. Workers may be reluctant to |
| the foreseeable future, the oil giants may | | | | move to the oil sands capital of the project |
| have no hesitation in investing their money | | | | due to prohibitive rent and lack of |
| into the numerous oil sands projects. The | | | | facilities. If the oil companies plan to |
| proven recoverable oil reserves at the | | | | produce three million barrels a day of crude |
| Alberta oil sands are estimated at as much as | | | | oil within the next 10 years, they will have |
| 178.8 billion barrels, compared to 261.5 | | | | to hire 40,000 workers. At the moment, wages |
| billion barrels of Saudi Arabia, 125.8 | | | | are reported to be increasing at an average |
| billion barrels of Iran, 115 billion barrels | | | | rate of eight per cent a year for the 12,000 |
| of Iraq, 101.5 billion barrels of Kuwait, | | | | workers working on the oil sands project in |
| 97.8 billion barrels of United Arab Emirates, | | | | northern Alberta. Even now the oil companies |
| 77.2 billion barrels of Venezuela and 60 | | | | are reportedly hard-pressed to find welders, |
| billion barrels of Russia. Thus, oil reserves | | | | plumbers, project managers and other skilled |
| of Alberta are estimated as second largest in | | | | workers. There is no doubt that both the |
| the world and they come next only to Saudi | | | | United States and Canada will benefit from |
| Arabia. The oil sands are contained in three | | | | the project. The US will be able to meet part |
| major areas beneath 140,800 square kilometres | | | | of its requirement of imported oil from its |
| of north-eastern Alberta - an area larger | | | | next-door neighbour, while Canada will get a |
| than the state of Florida, an area twice the | | | | reliable customer at hand, willing to buy |
| size of New Brunswick, more than four and | | | | increasing quantities of oil from it for an |
| half times the size of Vancouver Island, and | | | | indefinite period. The US oil security will |
| 26 times larger than Prince Edward Island. | | | | also be greatly boosted since the oil |
| However, only about two per cent of the | | | | reserves are estimated to be the second |
| initial established resource has been | | | | largest in the world and oil production is, |
| produced to date. How do the energy | | | | also, expected to go on increasing with the |
| companies extract oil from the oil sands | | | | passage of time. The addition of 178 million |
| reserves? In the first instance, oil-soaked | | | | barrels to the proven recoverable world oil |
| earth is mined, crushed and then mixed with | | | | reserves, together with an increase of one to |
| water. This mixture is sent to a separating | | | | two million barrels in the daily oil |
| machine, where the oil called bitumen settles | | | | production within the next few years will be |
| out. The bitumen is heated in a furnace. | | | | a significant development and it should |
| Then, the vapours are collected, cooled and | | | | definitely have a favourable impact on the |
| condensed, resulting in the formation of oil. | | | | global oil market. For the investment |
| After some more processing, oil can be sent | | | | community the oil sands represent a very |
| to a refinery. However, much of Alberta's oil | | | | lucrative opportunity. Websites like offer |
| sands reserves lie too deep for strip mining. | | | | insights into various Alberta Oil Sands |
| These deposits require the injection of steam | | | | Stocks. Conduct your research diligently and |
| deep under the ground to soak the bitumen. | | | | you should be able to find "liquid gold". |