Oil Sands & The Environment

Category: General oil sands topics

posted by Rick

Thursday, July 31, 2008 2:00 PM

Hi. Rick George here. I’m president and CEO of Suncor. I must admit, I don’t usually surf discussion forums, but I supported the creation of this web site, because I believe the oil sands industry has to do a better job of listening to its critics; and we need to do a better job of letting you all know what we’re doing to improve our performance. I’m a big believer that environmental stewardship and responding to the needs of our communities is just as important to the economic well being of our society as upgraders, pipelines or refineries.

Which is why I write today.

Most of the discussion that has occurred about the oil sands to date (on this website and elsewhere) results in people ‘taking sides’. You’re either for oil sands development – because our economy relies heavily on crude oil production. Or you’re against it – because of the environmental impacts that result.

I know it sounds funny coming from an oil sands CEO, but I’m not a supporter of either side. That’s because I believe we can do both....produce the crude oil our economy needs (and consumers demand)while also taking action to reduce our environmental footprint.

I know most of the industry’s focus has, especially in the early years, been primarily focused on figuring out the best way to reliably produce crude oil from sand. (It’s a tricky business that has historically thrown many curve balls!) But that’s no longer the case. Although we continue to research to make our industry better, our industry is maturing. The demands for environmental excellence have increased (from both external stakeholders, our employees AND our shareholders), and we’re fully committed to delivering on both fronts: oil that's produced in a responsible way.

We need a 'glass half full' attitude here. Industry has the technical and commercial expertise — and most importantly, access to capital — to drive the costly research and implementation required to achieve environmental solutions to our crude oil challenges.

If you don’t believe an oil sands company CEO can make environmental spending a priority, believe this: going green simply makes good business sense. Every time our industry reduces water use or air emissions, or limits the amount of land we disturb, we save money. Moreover, many of the technologies we develop, such as mobile mining or ethanol production, create new business opportunities for us.

Enough said. (My daughter tells me that "blogs aren’t essays", so I’ll close this up.) But I will monitor the site, and hope to weigh in on the discussions from time to time.

Thanks for listening and have a safe summer.

Rick

Reply to this post
posted by campelectrician   Thursday, July 31, 2008 9:54 PM
Hi Rick,

Let me first commend you on being the first CEO to get on this forum themselves. In spending some time researching each of the major companies operating in the Fort McMurray area Suncor certainly stands out as having the best public relations. I think you have hit it right on the nail wen you describe the glass half full attitude that industry and the public should have when dealing with the oil sands. My question is when will we see some of the major environmental issues that are currently plagueing industry dealt with? Is Carbon Capture part of Suncor's current expansion plans? Will it be implemented on the newest stages of Firebag or at the new Voyager Upgrader? Also when will we see a new seperation process implemented to reduce or eliminate wet tailings from surface mining? Will this be part of the Voyager mine when it gets the go ahead in the next couple years? In my opinion if these two key issues could be addressed the Oil Sands industry would greatly improve its reputation and public image. Thanks for your reply.

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Separation Process for Wet Tailings
posted by Todd Foret   Friday, August 01, 2008 2:10 AM
Dear Rick and Campelectrician,
Technologies do exist for processing wet tailings in order to recover water and residual bitumen. Our company has developed a plasma hydrocyclone called the Plasma Whirl which will treat sand covered with bitumen. In part, the Plasma Whirl has been in research, development and testing stages for the past 7 years. It is now ready for field testing.

Water Treatment Technology breakthroughs do not occur overnight. Several Oil Sand companies have contacted us and are now ready to proceed forward with demonstrations. This is a dramatic change from just a few years ago. It is a testament that they are going "GREEN" and are willing to "Think Outside of the Box." Any company that is willing to embrace "Disruptive Technology" and give it a "Shot in the Dark" is truly putting their "Words" into action.
The Oil Sands and Colorado's Oil Shale are North America's key to unlocking energy depedence on foreign oil. It will not be accomplished overnight nor with traditional technologies.
Imagine a small semi-portable system that can upgrade just 500 bbls/day of heavy oil/bitumen. Now imagine having 1000's of these small systems located throughout Alberta, California, Colorado or any other heavy oil play. Now imagine every heavy oil wellhead heater treater being retrofitted or replaced with a small upgrader. This miniture upgrader is one in the same system that can be placed at tailings ponds to begin treating tailings. When 10, 20 or 100 plasma hydrocyclones are manifolded together the flowrate rises from 500 bbls/day to 50,000 bbls/day.

Many people view tailings ponds, whether from oil sands, or phosphate production for fertilizer as an environmental disaster. However, by viewing the glass as half full, the tailings pond water can be a source of feedwater for generating steam.

The path forward for Canadians and Americans is coupling the Oil Sands with Innovative Technologies both on the environmental side but also on the processing side.

Sincerely,
Todd



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Funding
posted by ccanuck   Tuesday, August 05, 2008 11:42 AM
I agree that it does make sense to focus on this issue from not only a stewardship level but from a business level as well. Eventually it will pay off for the long term sustainability of the region and also stability of the operators in the region. Ignoring the problem and simply waiting for the government to “enforce” rules they create is not the answer.

Often the issue is convincing the right people that a new technology will work. The industry is cautious about implementing anything they consider to be “unknown” technology. Engineers have very long memories about failures of the past.

I have heard several times from people who have been in the industry for a period of years comments like “I tried a cyclone in 1985 and it was a failure, I will never use one again”. Or “we will try that technology when you prove it can work in our process and with our oil, we don’t want to be the first”

Somehow this culture must be changed, rewarding innovation even when it fails. Often multiple iterations are required for technology to achieve the results desired. It becomes a chicken and egg situation, how does a smaller technology driven company get into the game and prove their technology works?

One possible solution is joint technology development funded by the operating company. This will often provide the try-learn-implement process needed to understand how a new technology will work. It provides the operating company and technology supplier with the incentive to dedicate resources to achieving results.

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Funding Small Innovative Companies
posted by Mahona   Tuesday, August 05, 2008 1:16 PM
I agree with ccanuck. I'm part owner of a very small startup, using expert system technology to analyse seismic data faster, more accurately and cheaper than traditional methods. Is there any positive interest from the "raditional world"? No. The "not invented here" syndrome kicks in, followed by "we don't understand it", followed by "please explain all your secrets". Hmmm...

So I've started our own exploration company to act as a real life model for the new technology.

If only people in the UK were as positive as in North America! Wishful thinking.

But the initial point of my note was in the last paragraph of ccanuck's comment -- "try-learn-implement" -- so close to the old military adage of "adopt, adapt, improve" it just shows there's nothing new under the sun.

Best wishes to all readers

Scott Pollard
CEO, Mahona Energy

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posted by Ali   Friday, September 26, 2008 11:22 AM
I agree that convincing the right people in regards to the feasibility of a new technology is critical. Funding smaller innovative companies is just going to be part of the operators R & D programs. To actually convince them to implement these technologies is a whole different story. Technology qualification and HSE (Health Safety and Environment) requires a systematic approach that will help these operators relate to the issue that is under consideration. Ultimately, it comes down to securing the confidence of all stake holders. I have been lucky enough to see some operators come in and use one of the technology qualification practices developed by our offices here at DNV. And I can never agree more than Mahona that it is the actual convincing which is the hardest part.

Lets move towards identifying HSE issues and mitigate the risks involved with these issues.

Goodluck to all of us!

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Re;Funding Small Innovative Companies
posted by Brian   Thursday, September 18, 2008 12:22 PM
Greeting’s to all;
I find truth in all comments posted here, and frustration as well. We at Poligrat Canada Corporation also have a technology from Germany that I believe will help the industry reduce green house gas emission and increase their bottom line at the same time. But trying to fine someone who will listen and do something is hard. Maybe the decision has to come from the top, buy an open minded person, who is open to change and looks for new ways of doing things. And Rick, I think you fit the bill!
Maybe the industry needs a joint panel something like the Dragons Den Show were people with ideas can present them and then they can give a thumbs up or down. It would save so much time on everyone’s part. As well, if it is something that will have a great impact, it is spread thru out the industry now, not buy word of mouth which takes years. And on the other side of the coin, if it is something that will not help, then the companies will save their staff a lot of time form taking dead calls from people like myself, trying to promote their ideas.
Like evolution, change will happen, the question is will we help it or not?
Brian Dahl

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Oil Sands and Sustainability
posted by 34woody   Thursday, October 02, 2008 10:31 AM
Let’s not get all hung up on the quest for oil sands developments to be “sustainable” – after all, sustainability is subjective, not objective. The most frequently quoted definition of sustainable development is from Our Common Future, also known as the Brundtland Report: "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” This definition is little help, since “need” is subjective, and the future is unpredictable.

But that does not make the goal of sustainability meaningless – it merely makes it a political battleground. Together, the people of the world will decide how sustainable they want things to be – by their actions in the products they consume, the governments they elect, the rate at which they procreate, etc.

In Alberta, we have the chance to take a leadership position. Our oil industry needs to set examples in such things as using the latest technological methods of reducing fuel consumption, maximizing reduction of CO2, methane and other GHG’s, and communicating to the public how well we are doing in all these areas. It’s tough being a leader, but it’s worse being a mindless follower – sheep being led to the slaughter might enjoy the trip, but not the destination!!

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Deeds or words?
posted by Jayess   Thursday, January 08, 2009 10:10 PM
Mr. George, I'm pleased that you wrote your thoughts in a public, interactive forum. However, I feel nausea reading your post.

The unimpeachable Peter Sandman writes about the importance of credible commitments when cleaning up a communications mess. Consider this thought experiment: Your daughter having wrapped her car around a pole while racing through a school zone, says, "I have the capacity to be responsible and I'll do better." You. Would. Blow. Your. Top.

I don't think you have any idea how angry people are, because if you did, you wouldn't dare to write such pablum.

In the spirit of constructive feedback, I have ideas for a post that would be effective:

As a company, I admit that we haven't been good corporate citizens. We've spent the last decade privatizing gains and socializing losses. We have failed not simply to communicate, but the much deeper responsibility of ensuring that our business benefits society. Our business is a target because we deserve it. Here's what we'll do to regain your trust:

1. We commit to removing the tailings ponds by 2015. We have no idea how to do this, but they are a blight; they must go; and we will bend our will to eliminating them. Since we will take all steps in this direction, it costs us nothing to commit to paying a fine of $100,000 per day for every day after January 1, 2015, that these ponds are operational. We will recommend that the Alberta government enshrine this commitment in law.

2. We throw our full corporate support behind a Pigovian tax regime to penalize carbon emissions, provided that all carbon emissions are treated equally. We recommend a tax rate of $50/metric tonne of CO2 emitted. This tax has the advantage that it can be applied immediately, and will motivate carbon-reduction innovation throughout the economy without unduly increasing business's regulatory burden.

3. We recommend to the Alberta government that no further water be drawn from the Athabasca River for industrial use, and we will create a market to price and trade the capped industrial water rights.

4. To show that we are serious, we will put ourselves into the penalty box. We recommend that the Alberta government institute a two year moratorium on oil sands development to allow time for an infrastructure catch up period, as well as time to study cumulative effects and make measurable progress on our commitments.

Our failure of responsibility shames me deeply. There can be no economy without an environment, and we will attack our deficiencies with the same zeal with which we attack our technical and business issues. Rather than counting on my word, you can count on the law to ensure that we will change.

Reply to this Comment
posted by Rick   Friday, January 16, 2009 6:18 PM
Hello Jayess,

Rick here again.

Thanks for your post. I think you underline three key challenges Canada’s oil sands developers have before them:

1. Canadians are concerned about environmental impacts of oil sands development.
2. Industry has not done a good job of having an open discussion with citizens re: progress we’ve made and our efforts on social, environmental and economic performance
3. Industry must continue to improve our performance, especially relating to the environment.

On the first point, your concern is clear and we’ve heard the same from others on this forum and in opinion polls.

We’re not assuming we’ve had a firm finger on the pulse of Canadian opinion, nor are we assuming the loudest voices in the discussion speak for all stakeholders. But we are asking questions and opening up the dialogue.

I don’t think it’s accurate or fair to say the benefits of industry have been “privatized.”

Development of the oil sands benefits Canadians in a number of ways. We all need energy – to heat our homes, fuel our vehicles, or use in the production of goods and services. Production from oil sands plays a vital role in meeting the energy needs of Canadians -- people like you and me who use trains, planes or automobiles, or consume goods and services that need to be moved.

On a more direct level, the livelihood of a quarter million Canadians is connected to the oil sands – studies estimate that between 2000 and 2020, our industry will drive 5.4 million person-years of employment. That projection was made in 2005 and in the midst of the current economic storm it may have changed, but the ongoing economic benefits of oil sands development are probably more important than ever. In addition to employment, the 2000 to 2020 benefits also include an estimated $123 billion in taxes and royalties paid to governments, the majority of which is at the federal level. That goes to supporting programs like education and health care that we all value.

So I think the economic benefits are fairly clear, but understand they can’t come at the expense of improved environmental performance. You’ve asked for our commitment to remove tailings ponds by 2015. For our part, Suncor expects to reclaim our first pond next year – the work is now about 80% complete. Two more ponds that use newer technology to speed reclamation are expected to follow by 2019 or sooner. While current technology has proven effective, we’re piloting new technologies to further speed up the process.

In terms of water, Suncor has reduced its absolute water use by 40% in the past five years. 90% of water used to generate steam at our in-situ operations is recycled. And with our current expansion plans, we have requested a 0% increase in our license to withdraw water from the Athabasca River. Other producers have made similar progress and even if all projects on the drawing board go ahead, water withdrawals from the Athabasca are expected to account for a little more than 2% of river flow. That will keep the Athabasca among the least drawn upon rivers in Canada for industrial use

On more global impacts, I’m on the record as supporting a cost on carbon as long as it’s applied equally to all emissions from production to consumption. Although the oil sands are, along with steel producers, among the leaders of major industries in reducing emissions intensity, absolute emissions have increased with industry expansion. That’s an area where we need to make long-term improvements.

Suncor has also made a commitment to advance alternative energy to diversify the supply mix. This has included development of wind power and biofuels. These are not silver bullet solutions to tough issues like climate change but they are a step on the path to creating our energy future. As commercial viability of new forms of energy improves, the pace of investment will accelerate.

Let me close by saying I’m very proud of Suncor, our employees, suppliers and contractors and the support of the people in the communities where we operate. It’s a made-in-Canada success story of innovation, ingenuity and determination. I agree that the traits that built this industry into a major player in Canada’s economy are the very same traits that are – and will continue to be – at the forefront of addressing our environmental challenges.

Thanks for being part of the dialogue.

Rick


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no water needed in process
posted by bobkiesy   Saturday, February 28, 2009 7:56 AM
Rick
We manufacture a high intensity infrared heater that is used in the asphalt pavement industry to re-heat asphalt pavement deteriorated areas to temperatures of +150C so it can be reworked and compacted. This same process could be used to heat the bitumen in the oil sands for separation... instead of using water. Our heaters could get your oil sands to extraction temperature very quickly if placed over the conveyor belts taking the material for processing.
Regarding research, we have been trying to get someone interested in trying this method for a few years, but have had no response.
Regarding capability of our heaters... we just used them on Hwy 53 at the new suncorinterchange in November to heat the pavement so the final line painting could be done. The process saved the contractors butt on scheduling and allowed opening of the interchange. By the way... WE HAVE A PROBLEM WITH THAT CONTRACTOR and I hope you are aware what it is. Please contact me at bob@asphaltheater.com and maybe we can save your butt on oil sand extraction.

Regards

Reply to this Comment
posted by brad   Thursday, March 05, 2009 10:08 AM
Bob,

This issue as I understand it with using the asphalt heaters to heat bitumen on conveyors is not the effectivenes of the technology -- it's the efficiency. Direct thermal energy, including our use of waste heat captured from other parts of our process, allows us to improve energy efficiency at the integrated plant. While there may be some benefit in the proposed technology in reducing water used in the warm-water extraction process, when one considers that we have high rates of recycling, the benefit of reduced water would need to be weighed against the loss in energy efficiency and increase in greenhouse gases.

We'll contact you at the address provided about your problem with a contractor.

Reply to this Comment
posted by fieldsafe   Monday, March 23, 2009 3:38 AM

As an oilfield professional who has been in this business for sometime I would like to add my 2 cents worth. Given the recent figures quoted by Rick in his last reply the industry is moving in the right direction. I can draw on several issues that have been and continue to be addressed by industry. My field of expertise is HSE, I have and continue to work with several major producers. It appears to me that industry is acting on the oilsands issues the same way it has tackled other issues. We continue to research and try new methods to determine what works best for all. Lets considar other issues the industry has tackled and continues to work on.

Safety in the workplace for oil companies and others have come a long way, in fact we are now light years ahead of many other industries in this field. How did we get here? We as an industry recognised a problem some years ago and took action. We formed committees with experts from every facet of operations,we trained our people and formed partnerships with government, industry and training facilities. We looked at accidents and near misses in a new light, we introduced new technology and took input from anyone that had an idea of a better way to do things. We looked at other industries for ideas and applied all of those learnings to our operations.

Was every idea we had viable? Of course not. We explored and tested and developed to where we are today. Much like environmental issues, safety is an evolution not a destination.

We could apply the same logic for just about anything. Cars on our roads kill thousands every year. Is our solution to stop driving? The auto industry responded by developing anti-lock brakes, airbags and government responded by introducing graduated licensing and stiffer penaties for things such as drunk driving. Roads are designed to be safer, driver training is now included with many companies as part of the hiring process before an employee is allowed to drive.

From an environmental view point cars do cause damage to our air. Again in this we have come a long way. Cars are not only safer to drive but burn much less fuel. The fuel they do burn produces much less damage to the air we breathe. Alternative fuels also work to further reduce our footprint on the planet. Even tire technology has advanced to produce a tire with a lower rolling resistance making tires that are more fuel friendly.

In short, industry is doing everything it can. Will it happen overnight? Of course not. We will continue to do all we can and explore new ways and develop technology to meet our goals and we will evolve.

As a Canadian, I for one am proud of the record and advancements that the Canadian producers have made in our industry and shared with the world. Currently working in Libya, we are now teaching new and safer ways to work to the industry here.

Regards,

Paul

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Up fopr debate
posted by dyarnell   Friday, February 13, 2009 4:14 PM
(Disclaimer - I work for the ad agency that worked with Microsoft to sponsor a debate on this topic recently). I think you'll find this debate interesting: http://microsoft.rogersconsumerpublishing.com/macleans/ As with most things the truth is likely somewhere in the middle, but have a view for yourself and see what David Collyer & Simon Dyer have to say. They are obviously both passionate and well educated about the issues.

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Oil Sands Debate
posted by Travis   Thursday, February 19, 2009 11:39 AM
Hello Dyarnell, this is Travis from CAPP. You may have noticed that we linked to the debate you provided in the above post on the front page of this site. I had the opportunity to take in the debate in person in Toronto and agree that there is much to be learned from a well-organized debate between two passionate and infromed individuals. The debate you provided is very much in the spirit of this website. Thanks for participating in the conversation.

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Enclosed oilsands system
posted by Jay   Saturday, June 06, 2009 9:13 AM
To Rick George;

We have a system that will take water and oil mixture and completely seperate them into drinking water quality and oil. It works the same for mineral mining. The water is of the highest quality. The down side is that it is undrinkable without adding minerals as all of them are removed in the process. Energy consumption used is minimal. There is no thermal energy in the process. The system can intake hot water or steam, as in oil sands projects, with the same output. This is a membrane-less totally enclosed. Presently we have offers for desalination, as it is the best in the industry. In addition to this process, we could design a thermal pulse reactor that would make steam, seperate the bitmen, and operate from the crude oil, all in one system. 6 months for your delivered prototype.

Reply to this Comment
posted by brad   Thursday, June 18, 2009 12:09 PM
Hi Jay,

Could I ask you to send your contact information to Suncor via the info@suncor.com mailbox. As you know this industry is all about harnessing technology to improve our operational and environmental performance. New ideas are always welcome.

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