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Unconventional Oil Reserves in and Around the US

Posted by Steven Zweig on August 5, 2009 at 10:03 pm


Given total world conventional oil reserves of around 1.3 trillion barrels, the recoverable estimates for tar sand oil would increase world reserves by over 25 percent.

Is it practical to produce oil from tar sands? Yes—Canada has been doing so for years. In 2006, it produced over 1.1 million barrels per day, and could produce 3 million barrels a day by 2020.

How are the tar sands mined? Either by underground or open-pit mining, with open-pit mining currently more common. Sand is scooped out of a huge hole in the ground by giant shovels and carried away by dump trucks for processing.

Open pit mining of tar sands in Alberta, Canada. (Suncor Energy Inc. via ostseis.anl.gov)

Open pit mining of tar sands in Alberta, Canada. (Suncor Energy Inc. via ostseis.anl.gov)

What happens after tar sands are mined? The sands are trucked to an extraction plant, where hot water is used to separate the bitumen from the sand. Then the bitumen needs to be further refined into usable distillates, such as diesel, gasoline, number 2 home heating oil, etc. Of course, all crude oil has to be refined to be usable—there’s a reason it’s called “crude oil” and not “ready-to-use oil”—but bitumen, being thicker and more sludgy, needs additional refinement compared to conventional crude.

What are the costs of extracting oil from tar sands? Compared to conventional crude, producing oil from tar sands is dollar, energy, and water intensive.  To begin with, mining the sand requires giant machinery. Trucking it to the extraction plant requires huge trucks (some can carry up 320 tons—that’s equal to two 1,600 sq. ft homes!).

Massive quantities of water are used in separating the bitumen from the sand—several barrels of water are required for each barrel of oil.  The water has to be heated for the extraction process, and the additional refinement that bitumen requires needs more energy still. Overall, it takes the equivalent of 1 barrel of oil to create 5 – 6 barrels from tar sands.  This is roughly double the energy used to produce a barrel of crude by conventional means.

As a result of the additional steps in the process, the extra fuel, water, and machinery required, it costs around $25 to produce a barrel of oil from tar sand, as opposed to around $5 from conventional drilling or $15 from deep water drilling.)

Seperating tar sands--one step in the extraction process. (image: Suncor Energy Inc. via ostseis.anl.gov)

Seperating tar sands--one step in the extraction process. (image: Suncor Energy Inc. via ostseis.anl.gov)

What Pollution or Waste Is Given Off? There is solid waste—for example, sand sans bitumen—which is the least troublesome waste. It can be trucked back to the mine and used to fill it in when done.

More serious are the greenhouse gases (primarily carbon dioxide) given off, since they are implicated in global warming. Producing oil from tar sands releases around 1.5 times as much greenhouse gas as producing it from conventional crude oil.

Also, remember all that water used in the process? Well, large amounts of water contaminated with naphthenic acid are produced—entire lakes worth. Right now, there is no means to permanently clean up this liquid waste.

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18 Responses to “Unconventional Oil Reserves in and Around the US”

  1. [...] oil wells, and/or refinement techniques outside of those used for lighter grades of oil. As we’ve previously discussed, the methods of producing unconventional oil are economically feasible only when prices are very [...]

  2. [...] announcement must include a distinction between conventional and unconventional oil and gas. Unconventional oil is non-liquid oil bound up in a separate medium—tar sands constitute sticky and relatively dirty [...]

  3. [...] and the document itself are the types of oil sources included in the total reserve calculations. As previously explained on HeatingOil.com, proven liquid oil reserves are very different from “unconventional reserves,” a moniker [...]

  4. [...] oil fields drops off, it will have to be replaced by supplies from dirtier, harder-to-process unconventional sources like the tar sands of Alberta, Canada. Because the processing of unconventional sources is so [...]

  5. [...] Oil: A type of unconventional oil, shale oil is derived from oil shale, a sedimentary rock that contains a solid oil “precursor” called [...]

  6. [...] improved technology to drill for unconventional oil and rising oil prices mean that where most oil companies once saw a headache, they are beginning to [...]

  7. [...] satisfy investors, oil companies will be forced to go after riskier, dirtier substitutes like the Canadian Tar Sands, gas-to-liquid options in Qatar, or coal-to-liquid options in China and elsewhere. These prospects [...]

  8. [...] you look at technically recoverable oil, including unconventional oil resources such as oil shale (which has yet to be economically extracted in the US), the US has 166.7 billion [...]

  9. [...] Washington Post. Interior Secretary Ken Salazar said that companies interested in tapping oil shale reserves can only do so on 160-acre tracts, with the ability to expand to 640 acres at a later date. The [...]

  10. [...] to work) Arctic field will produce oil at a cost of $37 per barrel. This is a lot more than Middle East oil, which can cost as little as $5 per barrel. And that’s $37 per barrel after you know where the oil is, and how much there is of it—the [...]

  11. [...] Peak Oil: A BreakdownBiofuel Heating OilCFTC Report Will Blame Speculators for Oil Price Spike, New Regulations LikelyCFTC Announces Plans for Tighter Controls on Speculation; Heating Oil Prices Could be Affected Unconventional Oil Reserves in and Around the US [...]

  12. [...] fossil fuel industry and reduce potential U.S. oil and gas production, including: •    Withdrawing leases of federal land for the development of oil shale resources •    Proposing an end to subsidies for the fossil [...]

  13. [...] allowed for the rise, and pipeline expansion will increase US imports from Canada even further. Tar sands and other unconventional sources of oil are sometimes controversial, but have been used to meet demand at a time when OPEC countries have cut back on their exports to [...]

  14. [...] The reason for the proliferation of pipelines is the projected  growth in oil production from Canada’s tar sands It is expected that daily production from these sands will rise by 1.8 million barrels by [...]

  15. [...] 2030, which is three times the amount they produce today. According to an article on HeatingOil.com, oil sands, also called tar sands, are tough to extract, and must be heavily refined to be used as o….  Klare points to tar sands as one of the energy sources that will be used during the Era of [...]

  16. [...] Plus, located in the same region as the massive Alberta tar sands project, sells fuel, specialty chemicals, and building supplies to commercial, industrial, [...]

  17. [...] While the State Department is hailing the project as advancing in the strategic interests of the United States, environmental groups are not pleased. An international coalition of environmental and Native American groups call the crude product “the dirtiest oil on earth.” Indeed, according to an August HeatingOil.com article producing oil from tar sands “releases around 1.5 ti… [...]

  18. [...] estimated at almost 1 trillion tons, the equivalent of 4.4 billion barrels of oil.  Even including potential reserves of unconventional oil, coal is still the most common fossil [...]

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