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