About the Oil Sands

Canada’s oil sands deposits contain as much as 173 billion barrels of economically viable oil, second only in size to Saudi Arabia

Current oil sands production is about one million barrels of oil per day. By 2020, production is expected to grow to almost four million barrels per day. There is the potential for over 100 years of production.

There are three deposits of oil sands in Alberta. The largest is near Fort McMurray but there are two more near Peace River and Cold Lake (see map). There are currently more than 20 active mining and in-situ oil sands projects in these three areas.

The oil in the oil sands is called bitumen. Bitumen is extra heavy oil that does not flow in its natural state (it is as thick as peanut butter). It must be processed, or upgraded, to resemble light crude oil. There are two kinds of oil sands production -- mining and in situ.

• Surface mining is used when the bitumen deposits are close to the surface, using truck and shovel technology. The sands are transported to a processing facility where hot water is used to separate the bitumen from the sands. Only 20 per cent of all oil sands is close enough to the surface to be mined.
  
  
• In situ production recovers deposits that are deeper underground, using techniques that are similar to conventional oil production. Advanced drilling technology is used, typically injecting steam or solvents into the reservoir to mobilize the thick bitumen so it can be pumped to the surface through wells. Steam-assisted gravity drainage (SAGD) uses parallel pairs of horizontal wells, one drilled for steam injection and one for oil recovery.

The oil sands are owned by the people of Canada through their governments. Companies buy rights to access the resource, and pay royalties to government on their production.

Related Links

Government of Alberta

Alberta's Oil Sands