The Alberta oilsands are expected to make a significant contribution to future energy supplies.
One of the key advantages of the oilsands is that they are secure, safe and proven. As well, they can be profitably produced at existing and projected world oil prices.
Currently, oilsands production averages more than a million barrels a day.
Within the next twelve years, oilsands production is expected to increase to three million barrels a day.
The Alberta oilsands are contained in 140,800 square kilometres in northern Alberta. It is estimated there are between 1.7 and 2.5 trillion barrels of oil contained in the oilsands.
There are 178 billion barrels of proven oil reserves (second only to Saudi Arabia), with potential reserves of 335 billion barrels.
While the Alberta oilsands were discovered more than 100 years ago, it is only in the past thirty years they have become economically viable. In 1985 the cost of producing a barrel of oil was in the order of $40 a barrel. Through extensive research and development efforts, these costs were reduced to about $20 per barrel in 2000. However, because of ongoing shortages in labour and industrial capacity in Alberta, these prices have begun to increase appreciably.
The lack of resources has led to significant cost over-runs within several oilsands projects and may threaten to delay future oilsands projects.
The first oilsands plant, Great Canadian Oil Sands, opened in 1969. A second major plant, Syncrude Canada Ltd, began operations in 1978.
Today, there are more than 50 oilsands projects with investments valued at more than $104 billion.
Oilsands projects require additional investments in upgraders, infrastructure, pipelines, urban development and utility services. Currently, the Government of Alberta reports a total of $169 billion of announced investments within Alberta.
The Vision 2020 video shown in this website provides an important insight into the magnitude and scope of the Alberta oilsands.
This development has now become the world’s largest industrial complex, using the world’s biggest trucks and shovels.
Tied to the development of the oilsands is a massive expansion of upgraders and infrastructure support systems in the Edmonton region. Not only does Alberta wish to develop its oilsands potential, it needs to develop its downstream, value-added industry potential.
read more Oil Sands business mission from the Netherlands June 9-16, 2007
