Oil Sands In Canada

687 Words3 Pages
Overview A current issue in Canada has to do with the oil mining of the Alberta oil sands and the economic and environmental effects that coming along with extracting this resource. This crude oil reserve is the third largest in the world (Oil Sands, 2015), and what makes it different than other oil extraction methods is that the oil is mixed in with sand, clay and other minerals and needs to be treated properly before it can be used by refineries (What is Oil Sands?, 2015). The need for oil has been steadily increasing from the time of the invention of the automobile and is a global source of energy. The importance of tapping into a resource like the oil sands is helping to keep up with the demand in the marketplace but are there other economic…show more content…
The biggest problem with crude oil is the price per barrell(ppb) is constantly changing. The method used to extract oil from the oil sands in Canada is a lot more expensive then traditional drilling. If Saudi Arabia can increase their output, this ultimately brings down the ppb and that can affect the profitability in for the Canadian operations. In order for the oil sands to break even they need $100 per barrel (Maverick, 2015) and over the last year the price has been as high as $85 to as low as $40 (Commodities, 2015). When the ppb drops this mainly affects the amount of production possible and it will slow down or be put on hold until it is a more favourable time (Maverick,…show more content…
Firstly, in order to mine an given area, forest has to be cleared to make a mining site. As more sites are setting up, more of the Canadian boreal forrest is being depleted. There has been some government discussion about when the mining is done, that the private companies should be responsible for replanting in the areas they have cleared. Secondly, there is a lot of water needed to extract the oil. Up to 5 barrels of water is need to make one barrel of oil. As it is run through all the sand, clay and oil it contaminates the water. This comes from the Athabasca River, and ends back in the same river so this has been increasing the level of toxins in the water. This has an effect on the ecosystem and life that are in the river as well as depend on the river so it's a major concern(Gillespie,

More about Oil Sands In Canada

Open Document