Canada's oil sands : opportunities and challenges to 2015 : an update

This report updated an energy market assessment compiled and published by the National Energy Board (NEB) in 2004. Major changes resulting from recent developments in the oil sands industry were presented. The report was compiled from a series of informal meetings and discussions with a cross-section of oil sands stakeholders. Influences on recent oil sands development and production growth included market development and pipelines; rising capital and labour costs; operating costs; environmental impact management; high crude oil prices; rising global energy demand; technology innovations; and a more stable investment climate. A comparison of key assumptions between the current analysis and the 2004 report was presented, along with estimates of operating and supply costs for various types of oil sands recovery methods. Potential markets for oil sands production were reviewed. Environmental and socio-economic impacts on the industry included the larger than anticipated water withdrawals from the Athabasca River for mining operations; and uncertainties over land reclamation methods. The industry has also been impacted by a limited supply of skilled workers in Alberta. It was observed that the potential for building cogeneration capacity has decreased since the 2004 report. It was concluded that the oil sands industry will continue to grow rapidly, but the rate of development will depend on the balance that is reached between the opposing forces that affect the oil sands. Natural gas costs, high oil prices, air emissions management issues and water usage will continue to be of concern. 6 tabs., 7 figs