[35]…..”, Your email address will not be published. No provision has been made for that, and the funds to help repair(it will be impossible in any event) just wont be there. Nos partenaires et nous-mêmes stockerons et/ou utiliserons des informations concernant votre appareil, par l’intermédiaire de cookies et de technologies similaires, afin d’afficher des annonces et des contenus personnalisés, de mesurer les audiences et les contenus, d’obtenir des informations sur les audiences et à des fins de développement de produit. Removal of pristine boreal forest and creation of a toxic wasteland not mentioned. 351 King Street East, Suite 1600, Toronto, ON Canada, M5A 0N1, Keystone XL pipeline rejection sends a chill over Canada’s energy industry, Hardisty, town at Keystone’s start, takes stock of rejection, Shell says it halted oil sands project over pipeline uncertainty, Due to technical reasons, we have temporarily removed commenting from our articles. Bitumen is a sticky tar like form of petroleum.However, bitumen is extremely thick and heavy and must be diluted before it can flow. The supply costs, in prices equivalent to West Texas Intermediate crude oil after adjustments for blending and transportation, are $64.62/bbl for SAGD, $91.07/bbl for integrated mining and upgrading, and $81.51/bbl for stand-alone mining. The process ignites oil in the reservoir and creates a vertical wall of fire moving from the “toe” of the horizontal well toward the “heel”, which burns the heavier oil components and upgrades some of the heavy bitumen into lighter oil right in the formation. As we are about to find out at the upcoming UN Climate Change Conference in Paris later this month, it's right around the corner. Non-subscribers can read and sort comments but will not be able to engage with them in any way. This is a space where subscribers can engage with each other and Globe staff. Why 50 year old tech that kicks the -hit out of the earth and the populations around it? © Copyright 2020 The Globe and Mail Inc. All rights reserved. For that matter, the same can be said for any of the other proposed pipelines that would service the planned massive expansion of production from Alberta's oil sands. Are Canadian Tar Sands Profitable? The real environmental challenge confronting the future of the oil sands is how much global oil demand will be destroyed in the future by the imperatives of stabilizing atmospheric carbon at 450 parts per million (ppm) and avoiding the worst consequences of global climate change. And the tar-sands has gotten more than its share of public subsidies. Informations sur votre appareil et sur votre connexion Internet, y compris votre adresse IP, Navigation et recherche lors de l’utilisation des sites Web et applications Verizon Media. Oil sands are only profitable with high oil prices. We aim to create a safe and valuable space for discussion and debate. The market glut is from increased output from high-cost producers like the oil sands. At today's oil prices they no longer make any commercial sense. Even world oil prices like Brent no longer justify any expansion of the resource. Oil sands projects remain highly profitable for operators and governments and highly promising as a source of oil supply, according to an annual study by the Canadian Energy Research Institute. )/bbl of bitumen for steam-assisted gravity drainage, $89.62/bbl for mining integrated with upgrading, and $61.05/bbl for mining alone. Nothing in there about the $ per barrel being set aside to eventually clean up the mess. In the high case, production from mining and in situ operations increases from 1.5 million b/d in 2010 to 3.9 million b/d by 2020 and to 6.2 million b/d by 2045. Canada’s tar sands, which contain the planet’s third-largest oil reserves, were a prized possession for global energy companies when crude was trading above $100 a barrel. OPEC, home to the world's lowest-cost oil, is pretty much producing what it always has. In order to ascertain whether Canadian tar sands are profitable, we need to understand exactly what they are. Will there be room in a decarbonizing global economy for high-cost oil and the high oil prices that allow supply sources like the oil sands to be economically viable? That world isn't far off in the distant future. And in a low case, bitumen production is 4.1 million b/d by 2030 and 4.6 million b/d by 2045. Avatar, I remember my stint as a 18 wheel driver and making deliveries of pipe into the area during the mid 90s. Thanks to the shale revolution which has doubled U.S. oil production over the past decade, the security of Canadian oil supply no longer has the same cachet as it once did in the U.S. market. @Cam: You reckon they will ever to manage cleaning it up? While President Obama has described the diluted bitumen that … The oil sands face an even bigger challenge in tomorrow's emission-constrained world. Plunging oil prices may suggest that the world is awash with cheap oil but, in reality, what the world is really awash with is lots of expensive oil, much of it being produced at a loss. no strip mines no water poisoned for SAGD and less carbon emissions. The aesthetic increase in numbers gives one hope. If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Of course the tar-sands are profitable, how could they not be? Americans will have all suck up Canadian oil then and West Canada will look like the surface of the moon with water, air and land poisoned. Huge declines in oil prices, like the recent one that has sidelined so many oil sands projects lately, have always spurred powerful recoveries in global oil demand. But how much of a price recovery and how sustainable can one be in a world that will soon be driven to reduce its combustion of fossil fuels? When I saw the movie the connection was immediate. What could possibly go wrong there? Guess they don’t add that cost in! This article was published more than 4 years ago. Welcome to The Globe and Mail’s comment community. Cant much in way of new net energy, but money…sure. The study estimated the constant-dollar oil price needed to recover all capital expenditures, royalties, and taxes calculated at a real discount rate of 10%/year, which it called equivalent to a nominal return of 12.5%/year based on an inflation rate of 2.5%/year. The study said the province of Alberta receives an average royalty of $8.50-12.20/bbl over the life of an oil sands project. While President Obama has described the diluted bitumen that would have flowed through Keystone XL as "dirty", the real issue is not the carbon trail that comes from the fuel's extraction and processing. These include: greenhouse gas emissions, land disturbance, destruction of wildlife habitat, and degradation of local water quality. We hope to have this fixed soon. By GIUSEPPE MARCONI for OIL-PRICE.NET, 2010/01/27. “…..Toe to Heel Air Injection (THAI)This is a very new and experimental method that combines a vertical air injection well with a horizontal production well. 400-600billion dollars a year (global) in subsidies going to oil companies ensures even the most toxic and crappiest net-energy project can make money. Click here to subscribe. Oil sands projects remain highly profitable for operators and governments and highly promising as a source of oil supply, according to an annual study by the Canadian Energy Research Institute. Nice move from the internationals oil companies while my stupid, bought up government realize too late that it should have nationalize this resource and keep it for the next generation of Canadians, not Americans. For example, according to the International Energy Agency, a 450-ppm world will require world oil consumption to fall from its current level of around 93 million barrels a day to somewhere around 80 million barrels over the next two decades. It even upgrades the oil some. Historically fireflood projects have not worked out well because of difficulty in controlling the flame front and a propensity to set the producing wells on fire. Their existential dilemma in today's market is that it is they, not OPEC, who must cut production to clear the glut. However, some oil companies feel the THAI method will be more controllable and practical, and have the advantage of not requiring energy to create steam.

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