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Sitting on a fortune in black gold, but is this too high a price to pay?

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Published Date: 25 August 2008
THE largest dump truck in the world is parked under a massive mechanical shovel waiting to move 400 tonnes of oily sand.


Each Caterpillar 797B heavy hauler – three-storeys high, with tyres twice as tall as the average man – carries the equivalent of 200 barrels of heavy oil, worth £12,500 at today's prices.

"It's like sitting on your back porch and driving your
house," said Todd Dahlman, the manager of Shell Canada's Muskeg River open-pit oilsands mine in Alberta's Athabasca region.

Shell, which has 35 of the huge loaders working 24 hours a day, seven days a week, has ordered 16 more – at £2.7 million each – as it expands its open-pit mines.

Shell, Exxon-Mobil, Chevron, Canada's Imperial and other companies plan to strip an area of 55,000 square miles that could yield as much as 175 billion barrels of oil. Daily production of 1.2 million barrels from the oil sands is expected to nearly triple to 3.5 million barrels in 2020. Overall, Alberta has more oil than Venezuela, Russia or Iran. Only Saudi Arabia has more.

High prices are fuelling the Canadian province's oil boom. But the amount of energy and water needed in the extraction process has raised fears among scientists and environmentalists.

"Their projected rates of expansion are so fast we don't have a hope in hell of reducing greenhouse gas emissions," said Dr David Schindler, an environmental scientist at Alberta University.

Oilsands operations, including extraction and processing, are responsible for 4 per cent of Canada's greenhouse gas emissions, and that is expected to triple to 12 per cent by 2020.

Oilsand mining is Canada's fastest growing source of greenhouse gases and one reason it reneged on its Kyoto Protocol commitments. Producing a barrel of oil from sands is said to result in emissions three times greater than a conventional barrel of oil.

Brian Maynard, of the Canadian Association of Petroleum Producers, admits: "Industry has to improve its environmental performance."

But Dave Collyer, Shell's chairman in Canada, said world demand meant oil companies had to exploit unconventional sources of energy. "You have to consider the environmental impact in a broader context," he said. "There is significant economic benefit from the development of oilsands. The oilsands represent a very secure, reliable, long-term source of supply."

David Suzuki, Canada's best known environmentalist, cautioned against accepting the argument that the oil industry would develop safer techniques, such as carbon capture storage, noting that the time and money needed for such methods could not be predicted.

"They say, 'No, no, we're going to do research and really clean up our act'. You can't give these guys permission to go ahead on the promise that something is going to happen in the future," he said.

Many say the environmental ramifications are too dire to ramp up oilsands production. They claim Canada's boreal forest, one of world's largest intact ecosystems, is being torn up to make way for the mines and that too much water is being taken from Alberta's Athabasca river.

There are concerns, too, about the tailing ponds that sit next to the river. They contain waste from the separation of oil from sand and take up 50 square miles of northern Alberta. Jeff Short, a scientist who studied the long-term effects of the Exxon Valdez oil spill off Alaska, said if one of the ponds spilled into the river, "it would be the equivalent of several hundred Exxon Valdez oil spills". A flock of 500 migratory ducks died recently after landing in one of the ponds.





Page 1 of 1

  • Last Updated: 24 August 2008 9:35 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Jim A,

25/08/2008 01:11:55
I read something on this just a wee while back. What this article doesn't say is that the cost of extracting this type of oil is something like two or three times more expensive than traditional methods used for light sweet crude from the Gulf states.
2

Postmark-55,

China, 25/08/2008 02:27:16
#1 Jim A,
Good morning Jim, I'd like to comment on this article but all we get here in China is a "the article has been unable to display" message, So I'll just wish you a good day instead. GOOD DAY.
3

Jim A,

25/08/2008 02:39:47
#2 Postmark-55, And a good morning to sir. Why are you unable to read this article? Is your computers firewall set incorrectly or is it outside interference? Anyways your not missing much with this article, just another story about the oil companies destroying another part of the planet at a rapid rate and trying to justify it.
4

Jim A,

25/08/2008 02:42:13
#2 Postmark-55 here you go mate, copied and pasted the article for .

THE largest dump truck in the world is parked under a massive mechanical shovel waiting to move 400 tonnes of oily sand.


Each Caterpillar 797B heavy hauler – three-storeys high, with tyres twice as tall as the average man – carries the equivalent of 200 barrels of heavy oil, worth £12,500 at today's prices.

"It's like sitting on your back porch and driving your house," said Todd Dahlman, the manager of Shell Canada's Muskeg River open-pit oilsands mine in Alberta's Athabasca region.

Shell, which has 35 of the huge loaders working 24 hours a day, seven days a week, has ordered 16 more – at £2.7 million each – as it expands its open-pit mines.

Shell, Exxon-Mobil, Chevron, Canada's Imperial and other companies plan to strip an area of 55,000 square miles that could yield as much as 175 billion barrels of oil. Daily production of 1.2 million barrels from the oil sands is expected to nearly triple to 3.5 million barrels in 2020. Overall, Alberta has more oil than Venezuela, Russia or Iran. Only Saudi Arabia has more.

High prices are fuelling the Canadian province's oil boom. But the amount of energy and water needed in the extraction process has raised fears among scientists and environmentalists.

"Their projected rates of expansion are so fast we don't have a hope in hell of reducing greenhouse gas emissions," said Dr David Schindler, an environmental scientist at Alberta University.

Oilsands operations, including extraction and processing, are responsible for 4 per cent of Canada's greenhouse gas emissions, and that is expected to triple to 12 per cent by 2020.

Oilsand mining is Canada's fastest growing source of greenhouse gases and one reason it reneged on its Kyoto Protocol commitments. Producing a barrel of oil from sands is said to result in emissions three times greater than a conventional barrel of oil.

Brian Maynard, of the Canadian Association of Petroleum Pr
5

Jim A,

25/08/2008 02:43:24
Brian Maynard, of the Canadian Association of Petroleum Producers, admits: "Industry has to improve its environmental performance."

But Dave Collyer, Shell's chairman in Canada, said world demand meant oil companies had to exploit unconventional sources of energy. "You have to consider the environmental impact in a broader context," he said. "There is significant economic benefit from the development of oilsands. The oilsands represent a very secure, reliable, long-term source of supply."

David Suzuki, Canada's best known environmentalist, cautioned against accepting the argument that the oil industry would develop safer techniques, such as carbon capture storage, noting that the time and money needed for such methods could not be predicted.

"They say, 'No, no, we're going to do research and really clean up our act'. You can't give these guys permission to go ahead on the promise that something is going to happen in the future," he said.

Many say the environmental ramifications are too dire to ramp up oilsands production. They claim Canada's boreal forest, one of world's largest intact ecosystems, is being torn up to make way for the mines and that too much water is being taken from Alberta's Athabasca river.

There are concerns, too, about the tailing ponds that sit next to the river. They contain waste from the separation of oil from sand and take up 50 square miles of northern Alberta. Jeff Short, a scientist who studied the long-term effects of the Exxon Valdez oil spill off Alaska, said if one of the ponds spilled into the river, "it would be the equivalent of several hundred Exxon Valdez oil spills". A flock of 500 migratory ducks died recently after landing in one of the ponds.
6

Postmark-55,

China, 25/08/2008 02:49:06
#1 Jim A,
Better luck this time, and you're right Jim, there's a phenomenal cost involved, but at today's prices well worth the cost.
I've been to the tarsands or as they say here oilsands located near Fort McMurray, Alberta, many times and it is a huge undertaking, and it will go ahead at any cost, that includes environmental damage and nobody will stop it, far too much invested, and even far more to gain for the companies and the Alberta and Canadian Governments.
The environment will take a back seat to oil, it always has and always will.
Canada, a huge country with an incredibly small population, needs this kind of resource to remain a world player, and will extract this resource at all costs.
7

Postmark-55,

China, 25/08/2008 02:51:21
Thanks Jim, that was real considerate and thoughtful, but it displayed after a few more goes.
Thanks for the extra effort Jim, much appreciated.
8

Postmark-55,

China, 25/08/2008 02:55:40
Sorry Jim, don't know much about computers or firewalls, but I'm the fastest there is when it comes to typing with two fingers, the other eight are always busy doing something else.
And no,
don't even go there.
9

Jim A,

25/08/2008 03:17:12
#8 Postmark-55, And no,don't even go there.

LOL, yeah ok :-0
10

Postmark-55,

China, 25/08/2008 03:20:16
#9 Jim A,
Wise guy ;(
11

Jim A,

25/08/2008 03:21:51
#6 Postmark-55, yeah well when we've destroyed everything in the name of profit I wonder if mankind will take a minute to look back and ponder if it was all worth it. I just wonder if we're going to leave our future generations a barren, near lifeles planet.
12

Jim A,

25/08/2008 03:24:04
I'm fortunate in that I live out in the country surrounded by fields and woods. I find it surprising at how many people see nature at it's best everyday yet see nothing.
13

Postmark-55,

China, 25/08/2008 03:40:43
#11 Jim A,
When I mentioned the 'well worth the cost' bit, that was solely to express how the corporations and governments feel, but definitely not how I personally feel about it.

I spent a great deal of time every Autumn in the forests of British Columbia picking pine mushrooms, a well paying hobby of mine.
The money was good most years, the time out there every year for four weeks was great, and nature has no equal.

But the disturbing part is when you see how much damage the loggers did and left behind for us adventurous types to see. The general public will never see it and aren't aware of it.

There are slash piles everywhere and they are huge. If anything it can be used for pulp and paper, or numerous other projects, but it is left there lying to rot and is a big hazard as far as forest fires go and just a criminal waste all around. Hell, there's enough firewood there to keep every home in Canada toasty warm all winter long.

This damage goes on for countless miles at countless places, but hey, wood and wood products bring in huge bucks, so why bitch eh?

A rope's too good for them.
14

Jim A,

25/08/2008 04:33:39
Postmark-55, Yeah I've seen the damage the loggers have done in parts of Canada. I worked in Nordegg, Alberta for six months high up in the Rockies. Totally breathtaking scenery. The cobalt blue lakes in front of snow covered peaks, it would be both stupid and arrogant of mankid to lose that, but I fear we will if we don't let up very soon.
15

Postmark-55,

China, 25/08/2008 05:22:50
#14 Jim A,
Ah, Nordegg, great place, good fishing anywhere in that country. Roads become undrivable when it rains though, slid off into the ditch more than I care to remember.
Used to go from Edson, through Robb and beyond and would end up at Abraham's Lake. I think that lake was formed by the Big Horn dam across the North Saskatchewan River, but I haven't been there in quite a spell, I could have the name of the dam wrong.
Anyways Jim, that brings back great memories, and yes, beautiful country, but stay away in the winter, weather changes too quick through there, outright dangerous to the unenexperienced ones, and a sh!tload of bears in the late Spring through early Autumn.
Damn Jim, good to know you experienced that part of the world, not too many places like it.
16

Jim A,

25/08/2008 05:36:54
#15 Postmark-55, yep I really enjoyed my time in Canada, managed to do a bit of traveling whilst there. Talking of the weather, I tell you mate, early August, beautiful sunshine in the morning temp around 75F. Two hours later a complete white out, I sh!t you not. Also while I was there we had a very old hungry brown bear come into camp. He looked like he'd seen better days, very thin, teeth worn down or missing, covered in battle scars. He wasn't going to make it through the winter. Well we gave that old fella another winter. He'd come into camp around 7pm every night and we would feed him the days slops from the kitchen. By the time he took off around the end of October to find somewhere to hibernate he must have put on a good couple of hundred pounds. The guys fed him everything just to get his weight up. I like to think we at least gave him another winter of life or failing that he went to sleep full and contented but just didn't wake up come spring. Sounds soppy I know, but you know mate, I couldn't give a damn ;-)
17

Postmark-55,

China, 25/08/2008 06:14:37
#16 Jim A,
Well Jim, I like wildlife as much as you do, about the only thing I miss from Canada here in China. China rivals Canada in beauty, but sadly there's a total lack of wildlife.
Back to the David Thompson area you were at though, a real snow-belt, and yes, I've seen enough whiteout conditions 12 months of the year there, and they come up without any warning whatsoever. Abraham Lake I mentioned before, damn good fishing, but you want stick real close to shore when out on the boat, 50 mph winds come up without warning and will swamp your boat in about two second's time, and it's a big lake, about 30-40- miles long if I remember correctly, but things seem to excaggerate over time, and that may well be the case with this particular lake.

I love the Canadian wildlife best though, and there ain't no lack of it, especially in the foothills of Alberta, the Rockies and all of British Columbia. I was fortunate to come face to face with cougars(mountain lions) three times, and they usually stay pretty well hidden.
Bears of all sizes and colours, like the Kermode(spirit bear), an all white bear but yet still considered to be a black bear. Grizzlies the size of pick-up trucks, and that's before they reared up on their hind feet.
Every kind of deer you can imagine and of course the ugly but beloved moose.
Lynx, bobcats, badgers, coyotes(my favorite) wolves, and of course the ever friendly wolverines. The wolverines I only saw up north though, but they could be there where you were, just never saw them there.
Hell Jim, the list is endless, and yes, it's alright of you, and in fact great what you did for that old bear, we need more guys like you to preserve this world, but they're few and far between. Sappy or not, I'm in the corner backing you buddy, I ain't a tree hugger but I know when we've gone too far with the raping and pillaging of our planet.
18

Jim A,

25/08/2008 07:12:16
Postmark-55, Like I said, I'm lucky to live out in the country. I've see loads of wildlife just looking out our back windows. I'm not a tree hugger either mate, it just amazes me that there are people who don't stop to think or just plain don't care about about the consequences of the damage they do to nature. Tell you what though mate, I believe nature will only take so much of our bad habits and then decide it's time to sort it all out. I don't think that will bode well for human kind if and when it happens.

P.S. I knew despite what you said on another post there would be something from Canada you would miss. Postmark, you may have taken the boy out of Canada, but you will never ever take Canada out of the boy. Like it or not mate your tied to her always, in one way or another. And that sir is meant as a compliment.
19

Jim A,

25/08/2008 07:54:37
#17 Postmark-55, I forgot to ask you, but do you know how Canada came to get it's name?
20

Postmark-55,

China, 25/08/2008 08:12:17
#18 Jim A,
You got me there Jim,
Somethings are hard to forget and let go,
and no Jim, I don't know where the name Canada originated and am too lazy to look it up, so please inform me Jim, and thanks in advance.

And thanks for the compliment, gladly accepted and sincerely appreciated.
21

Douglas,

Bathgate 25/08/2008 09:22:03
Yup, it's either Dragonhead or they both used the same training manuals.
22

Postmark-55,

China, 25/08/2008 10:42:12
#22 Douglas,
Hey Douglas, try to keep up eh, haven't you seen the return of Dragonhead the past few days? Oh well, it ain't your fault.
23

Postmark-55,

China, 25/08/2008 11:40:24
#20 Jim A,
Well Jim, just looked it up and wikipedia gave a few different explanations, I like the one the Spanish gave and wrote acá nada ("nothing here") on that part of their maps. Kinda shows they were out to lunch eh?:)
24

Yada,

25/08/2008 12:52:27
quote ... "Their projected rates of expansion are so fast we don't have a hope in hell of reducing greenhouse gas emissions," said Dr David Schindler, an environmental scientist at Alberta University. unquote
Well, good! We need the energy. We do not need the eco-idiots telling us how to live our lives.
Read my lips ...... Carbon dioxide is not, repeat NOT, a pollutant. It is not a "greenhouse gas" in the sense that the eco-nuts would like you to believe. It is an essential trace gas in the atmosphere and within limits (which are a damn sight higher than 400 ppm) the better especially since we need more plant growth to feed the world since the same eco-fascists won't let us use science to improve crop yield.
And in spite of what Al Gore tries to tell you CO2 levels *follow* temperature increase and NOT the other way round.
25

Jim A,

25/08/2008 13:41:21
#22 Douglas, Whatever mate, did it ever cross your mind it may just be two guys having a bit of a banter
26

Jim A,

25/08/2008 13:44:48
Postmark55 forget wikipedia and the Spanish here'show it happened.

Ok on my last trip to Canada, I had the rare pleasure of meeting the leading historian of this great country. Out of curiosity I asked him how their county got it's name.

Below is his explanation...

There were three explorers, hiking through what is now known as Canada.

"You know," said the first explorer, "we should name this place we're hiking through."

"I agree," said the second explorer.
"Great idea" quipped the third explorer.
"We'll each pick a letter and then make a name out of that."

"Okay," said the third, "I'll go first. C, eh."
The second said: "N, eh."
The first... "D, eh."

And that is how Canada got it's name, Eh
27

Postmark-55,

China, 25/08/2008 14:22:05
#27 Jim A,
OK Jim, I'll be man enough to admit defeat here, I should have known better with a wise guy like you, and yes, that's a whole lot better than wikipedia, but it's your fault, I waited for a long time before I looked it up, and I thought I was the lazy one.

Thanks Jim, you definitely have your own way of putting colour into this forum.
28

Jim A,

25/08/2008 16:34:26
Postmarh-55, sorry about the wait, (time difference) but glad you enjoyed it.
29

Postmark-55,

China, 25/08/2008 16:45:10
Apology accepted Jim, no worries, and yes, that was indeed a good one,
Well Jim, time to turn in, damn near midnight, have a good night and hope to catch ya around here again some time.
30

Climate change is a fraud,

26/08/2008 14:15:31
Only UKIP will get us out of the EU. We need to govern ourselves. Traitors like Gordon Brown and Alex Salmond should be exiled to Brussels!

 

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