1. Oil Sands Fever Slide Show
The Environmental Implications of Canada’s Oil Sands Rush
Version 6, Nov. 21, 2005

2. Alberta is home to nearly all of Canada’s oil sands.
There are three oil sands deposits in northern Alberta.

3. An Industrial Landscape
These enormous deposits make up about 23% of the province. It’s an area of 149,000 square kilometres of boreal forest.
© 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

4. 1/3 of Canada’s Oil Production
About one-third of all oil currently produced in Canada comes from the oil sands.
Using today’s technology, 174 billion barrels could be recovered.
It’s predicted that ultimately about 315 billion barrels will be recovered.
Photo: Dan Woynillowicz, the Pembina Institute

5. Five Million Barrels a Day
In 1995, government and industry set a goal of producing one million barrels per day by This was achieved in 2004.
The new goal: five million barrels per day by 2030.
Photo: David Dodge, the Pembina Institute

6. Producing Oil from Tarry Sands
Oil sands are composed of sand, silt, clay, water and about 10% bitumen.
Oil sands are either surface mined or the bitumen is extracted in situ (in place).
Photo: Chris Evans, the Pembina Institute

7. Surface Mining Production
To produce one barrel of oil:
4 tonnes of material is mined.
2 - 5 barrels of water are used to extract the bitumen.
Enough natural gas to heat 1.5 homes for a day is required.
© 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

8. In-Situ Production
Over 90% of the bitumen can only be extracted in situ, whereby high-pressure steam is injected to remove the bitumen from the sand.
This technique requires four times as much natural gas as surface mining and leaves a significant mark on the landscape.
Photo: TerraServer.Com

9. Upgrading Bitumen to Oil
To be refined into end products, bitumen must be upgraded to synthetic crude oil.
75% per cent of each barrel of oil is used for transportation fuel.
© 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

10. Climate Change Emissions Soaring
Canada is one of the most-energy intensive countries in the world.
Under the Kyoto agreement, we agreed to reduce our greenhouse gas (GHG) emissions to 6% below levels by 2012.
Canada’s emissions are now % above 1990 levels.
Photos: Dan Woynillowicz and David Dodge, the Pembina Institute

11. Greenhouse Gas Emissions x2
The oil sands are the single largest factor in the growth in emissions.
Even in the best-case scenario, emissions will double by 2015 in the oil sands industry.
© 2005 The Washington Post, Photo by Melinda Mara, Reprinted with Permission

12. Boreal Forest Impacts
The Canadian boreal forest is one of the few remaining wilderness forests on Earth.
Canada’s boreal forest contains 35% of the world’s wetlands and is home to thousands of plants and animals.
It also stores carbon, regulates climate and filters water.
Photo: David Dodge, the Pembina Institute and Courtesy of CPAWS

13. A Growing Boreal Footprint
Surface mining operations divert rivers, drain wetlands and strip soils.
Existing, approved and planned projects will impact an area three times the size of Edmonton.
The future “reclaimed” landscape will be radically different from the natural mosaic of boreal wetlands and forest.
Photo: David Dodge, the Pembina Institute

14. Downstream, Up North
The Athabasca River flows from the glaciers of Jasper National Park to the Peace-Athabasca Delta, the largest boreal delta in the world.
Oil sands operations threaten the river’s health and integrity.
Photo: David Dodge, the Pembina Institute

15. Troubled Waters
Current oil sands operations remove three times as much water as the City of Calgary uses each year.
Some of the water used for extraction at the mines cannot be recycled: it ends up in tailing ponds. These massive structures are growing and pose a serious reclamation challenge.
Oil sands operations also lower water levels in freshwater aquifers, streams, lakes, ponds and wetlands.
Photo: Chris Evans, the Pembina Institute

16. Air Pollution
Alberta is now the industrial air pollution capital of Canada.
Although the industry has reduced the volume of the pollutants it emits, it is still much higher than conventional oil production.
Photo: David Dodge, the Pembina Institute

17. Increasing Emissions
There has been an increase in acidifying emissions and air toxins.
The air quality in the region will be further degraded as more projects are approved.
Photo: Dan Woynillowicz, the Pembina Institute

18. Government Generosity
Ten years ago, the federal and provincial governments reduced tax and royalty rates to support development of the oil sands.
While production increased 133% between 1995 and 2004 total royalties declined by 29%.
1995 royalty paid: $1.60 per barrel
2004 royalty paid: $0.50 per barrel
Photo: David Dodge, the Pembina Institute

19. 1% Return, 100% Write-off
The provincial government collects a 1% royalty on gross revenue until project payout. After that a 25% royalty on net revenue is collected.
The federal government provides a 100% write-off for all capital costs on new oil sands mines or expansions.
Production is up and revenue collection is down.
Photo: David Dodge, the Pembina Institute

20. Government Support Not Needed
The oil sands are now extremely profitable and will remain so as long as oil is over $25/barrel.
This preferential royalty and tax regime is outdated, unnecessary and is, in effect, subsidizing soaring greenhouse gas emissions.
Photo: David Dodge, the Pembina Institute

21. Vision for a Sustainable Future
The oil sands need to be developed within the context of a transition to an economy based on sustainable energy.
We need to manage oil sands development to ensure irreversible environmental change does not occur.
Photo: David Dodge, the Pembina Institute

22. Vision: Protect the Climate
This plan would encompass
Responsible use of energy resources – energy efficiency, energy conservation, renewable and non-renewable energy, along with incentives for responsible consumption.
Climate protection – using the best technology to reduce emissions and achieving carbon-neutral oil sands operations by 2020.
Photo: David Dodge, the Pembina Institute

23. A Vision of Sustainability
Protect the environment
Establish limits to protect health and environmental integrity.
Protect an area of intact boreal forest.
Set clear reclamation expectations.
Create a new fiscal plan – eliminating federal tax subsidies and maximizing revenue from taxes and royalties.
Invest a portion of the wealth in a sustainable energy fund.
Photo: David Dodge, the Pembina Institute

24. Sustainable Energy Solutions
For copies of our report: Oil Sands Fever: The Environmental Implications of Canada’s Oil Sands Rush, to watch Oil Sands Fever the video or to get copies of this slide show visit our website.
Sustainable Energy Solutions
Photo by Dan Woynillowicz, the Pembina Institute