Tar on Tap

This article explores diverse ways adopted by companies to find ways to make extracting oil from the sands of northern Alberta a little easier. At Petrobank’s Whitesands site, heat from in situ combustion both melts and upgrades the bitumen in the underground deposit. Horizontal production wells carry the oil to the surface. However, even with the new processes in place, copious quantities of energy and water are needed to produce oil from sands. In situ production processes exploit bitumen deposits that are inaccessible through surface mining. The facility at EnCana’s Foster Creek site processes some of the water used to extract bitumen in situ. That recycled water is then boiled and reinjected below the surface. Environmental arguments aside, many observers contend that the only argument against exploiting the Alberta oil sands that might have any success is economic—that it might cost more than alternatives. The paper concludes that barring some unforeseen calamity, oil demand is expected to outstrip the capacity of conventional petroleum production. Even if wringing oil from the Alberta sands is expensive and energy-intensive, it is probably a cost most consumers will be willing to pay for access to the next easiest oil.