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Oil sands

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87-870: Oil sands are a type of unconventional petroleum deposit . They are either loose sands, or partially consolidated sandstone containing a naturally occurring mixture of sand , clay , and water , soaked with bitumen (a dense and extremely viscous form of petroleum ). Significant bitumen deposits are reported in Canada , Kazakhstan , Russia , and Venezuela . The estimated worldwide deposits of oil are more than 2 trillion barrels (320 billion cubic metres). Proven reserves of bitumen contain approximately 100 billion barrels, and total natural bitumen reserves are estimated at 249.67 Gbbl (39.694 × 10 ^  m) worldwide, of which 176.8 Gbbl (28.11 × 10 ^  m), or 70.8%, are in Alberta, Canada. Crude bitumen

174-422: A fuel, and coal tar as a material for paving roads has been replaced by the petroleum product asphalt . Naturally occurring bitumen is chemically more similar to asphalt than to coal tar, and the term oil sands (or oilsands) is more commonly used by industry in the producing areas than tar sands because synthetic oil is manufactured from the bitumen, and due to the feeling that the terminology of tar sands

261-467: A great depth , creating high subsurface temperatures, and producing a giant pressure cooker effect that converted the kerogen in the deeply buried organic-rich shales to light oil and natural gas. These source rocks were similar to the American so-called oil shales , except the latter have never been buried deep enough to convert the kerogen in them into liquid oil. This overthrusting also tilted

348-633: A journey of 600 miles; they had passed through five lakes and undertaken 33 portages . Deering's Point became a gathering place for First Nations people who journeyed down the Nelson River to trade at York Factory. Kelsey sent a letter, carried by First Nations people, back to York Factory with his observations about the journey and the First Nations people he had met. He said that the various indigenous nations were continually at war with each other, which hindered prospects for trade. Kelsey spent

435-498: A major source of unconventional oil, although only Canada has a large-scale commercial oil sands industry. In 2006, bitumen production in Canada averaged 1.25 Mbbl/d (200,000 m/d) through 81 oil sands projects. 44% of Canadian oil production in 2007 was from oil sands. This proportion was (as of 2008) expected to increase in coming decades as bitumen production grows while conventional oil production declines, although due to

522-735: A potential record high at the end of the year of approximately 5.3 million barrels per day (bpd). The surge in production is attributed mainly to growth in Alberta's oilsands. The expansion of the Trans Mountain pipeline —the only oil pipeline to the West Coast—will further facilitate this increase, with its capacity set to increase significantly, to 890,000 barrels per day from 300,000 bpd currently. Despite this growth, there are warnings that it might be short-lived, with production potentially plateauing after 2024. Canada's anticipated increase in oil output exceeds that of other major producers like

609-829: A project to develop a small oil sands deposit in the Republic of the Congo . Production is scheduled to commence in 2014 and is estimated to eventually yield a total of 40,000 bbl/d (6,400 m/d). Except for a fraction of the extra-heavy oil or bitumen which can be extracted by conventional oil well technology, oil sands must be produced by strip mining or the oil made to flow into wells using sophisticated in-situ techniques. These methods usually use more water and require larger amounts of energy than conventional oil extraction. While much of Canada's oil sands are being produced using open-pit mining , approximately 90% of Canadian oil sands and all of Venezuela's oil sands are too far below

696-723: A result of the formation of the Canadian Rocky Mountains by the Pacific Plate overthrusting the North American Plate as it pushed in from the west, carrying the formerly large island chains which now compose most of British Columbia . The collision compressed the Alberta plains and raised the Rockies above the plains, forming mountain ranges . This mountain building process buried the sedimentary rock layers which underlie most of Alberta to

783-611: A result, the government has been trying to "Wind Down" the Orimulsion program. Despite the fact that the Orinoco oil sands contain extra-heavy oil which is easier to produce than Canada's similarly sized reserves of bitumen, Venezuela's oil production has been declining in recent years because of the country's political and economic problems, while Canada's has been increasing. As a result, Canadian heavy oil and bitumen exports have been backing Venezuelan heavy and extra-heavy oil out of

870-649: A shallow Permian formation. In Kazakhstan, large bitumen deposits are located in the North Caspian Basin. In Madagascar, Tsimiroro and Bemolanga are two heavy oil sands deposits, with a pilot well already producing small amounts of oil in Tsimiroro. and larger scale exploitation in the early planning phase. In the Republic of the Congo reserves are estimated between 0.5 and 2.5 Gbbl (79 × 10 ^ and 397 × 10 ^  m). Bituminous sands are

957-628: A total of 32 Gbbl (5.1 × 10 ^  m) of oil (known and potential) in eight major deposits in Carbon , Garfield , Grand , Uintah , and Wayne counties. In addition to being much smaller than the Canadian oil sands deposits, the US oil sands are hydrocarbon-wet, whereas the Canadian oil sands are water-wet. This requires somewhat different extraction techniques for the Utah oil sands from those used for

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1044-683: Is a fourth major oil sands deposit in Canada, the Melville Island oil sands in the Canadian Arctic islands , which are too remote to expect commercial production in the foreseeable future. Apart from the megagiant oil sands deposits in Canada and Venezuela, numerous other countries hold smaller oil sands deposits. In the United States, there are supergiant oil sands resources primarily concentrated in Eastern Utah , with

1131-543: Is a thick, sticky form of crude oil, and is so viscous that it will not flow unless heated or diluted with lighter hydrocarbons such as light crude oil or natural-gas condensate . At room temperature, it is much like cold molasses . The Orinoco Belt in Venezuela is sometimes described as oil sands, but these deposits are non-bituminous, falling instead into the category of heavy or extra-heavy oil due to their lower viscosity. Natural bitumen and extra-heavy oil differ in

1218-585: Is commonly used for production. The Cold Lake oil sands are of a roughly circular shape, centered around Bonnyville, Alberta . They probably contain over 60 billion cubic metres (370 billion barrels) of extra-heavy oil-in-place. The oil is highly viscous, but considerably less so than the Athabasca oil sands, and is somewhat less sulfurous . The depth of the deposits is 400 to 600 metres (1,300 to 2,000 ft) and they are from 15 to 35 metres (49 to 115 ft) thick. They are too deep to surface mine . Much of

1305-457: Is generally higher than conventional reservoirs owing to the lack of predictability of the trap extent and of the reservoir quality, which requires extensive well placement and testing to determine the economic reserves /well limit defined by well delivery . As with all forms of fossil fuel , there are established issues with greenhouse gas emissions through export (distribution) as well as consumption (combustion), which are identical whether

1392-470: Is less politically acceptable to the public. Oil sands are now an alternative to conventional crude oil. The world's largest deposits of oil sands are in Venezuela and Canada. The geology of the deposits in the two countries is generally rather similar. They are vast heavy oil , extra-heavy oil, and/or bitumen deposits with oil heavier than 20°API, found largely in unconsolidated sandstones with similar properties. "Unconsolidated" in this context means that

1479-652: Is not often used today. The Athabasca oil sands are the only major oil sands deposits which are shallow enough to surface mine. In the Athabasca sands there are very large amounts of bitumen covered by little overburden , making surface mining the most efficient method of extracting it. The overburden consists of water-laden muskeg (peat bog) overtop of clay and barren sand. The oil sands themselves are typically 40 to 60 metres (130 to 200 ft) thick deposits of crude bitumen embedded in unconsolidated sandstone , sitting on top of flat limestone rock. Since Great Canadian Oil Sands (now Suncor Energy ) started operation of

1566-475: Is significant, measurable and predictable. Henry Kelsey Henry Kelsey ( c.  1664  – 1 November 1724) was an English fur trader , explorer, and sailor who played an important role in establishing the Hudson's Bay Company in Canada. He is the first recorded European to have visited the present-day provinces of Saskatchewan and, possibly, Alberta , as well as the first to have explored

1653-610: Is south of Athabaska and the Wabasco oil sands are south of Athabaska and usually linked to it. According to the Petroleum Economist , oil sands occur in more than 70 countries, but the bulk is found in these four regions together covering an area of some 77,000 square kilometres (30,000 sq mi). In 2007 the World Energy Council estimated that these oil sands areas contained at least two-thirds of

1740-534: Is traveling among them." In the summer of 1689, Kelsey and the same First Nations boy tried to find First Nations north of the Churchill River to open trade with them. Kelsey travelled inland for about 235 miles north of the Churchill, but returned without having any success. In 1690, HBC governor at York Factory, George Geyer, sent Kelsey on a journey up the Nelson River "to call, encourage, and invite

1827-414: The 11 September 2001 attacks , and the 2003 invasion of Iraq . The boom periods were followed by the bust, as the global price of oil dropped during the 1980s and again in the 1990s, during a period of global recessions, and again in 2003. The name tar sands was applied to bituminous sands in the late 19th and early 20th century. People who saw the bituminous sands during this period were familiar with

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1914-664: The Carrot River by canoe, crossed into present-day Saskatchewan, then continued on foot to a point northwest of present-day Yorkton , entering the aspen parkland. Kelsey's route was probably via several well-travelled foot trails. Entering the aspen parkland, possibly near the Touchwood Hills , he encountered the Assiniboine , a buffalo-hunting people of the Great Plains. The Assiniboine and other peoples of

2001-529: The First Nation peoples had used bitumen from seeps along the Athabasca and Clearwater Rivers to waterproof their birch bark canoes from early prehistoric times. The Canadian oil sands first became known to Europeans in 1719 when a Cree person named Wa-Pa-Su brought a sample to Hudson's Bay Company fur trader Henry Kelsey , who commented on it in his journals. Fur trader Peter Pond paddled down

2088-683: The Great Plains from the north. In his travels to the plains he encountered several Plains First Nations , as well as vast herds of the American bison , their primary source of food. Kelsey was born and married in East Greenwich , south-east of central London. Kelsey was apprenticed in London at age 17 to the Hudson's Bay Company (HBC) and departed England for Canada on 6 May 1684. He

2175-612: The Orinoco oil sands where it pinches out against the igneous rocks of the Guyana Shield is only about 200 to 300 km (100 to 200 miles). The hydrodynamic conditions of oil transport were similar, source rocks buried deep by the rise of the mountains of the Sierra Orientale produced light oil that moved up-dip toward the south until it was gradually immobilized by the viscosity increase caused by biodgradation near

2262-606: The Peace River deposits of northwestern Alberta. Between them, they cover over 140,000 square kilometres (54,000 sq mi)—an area larger than England —and contain approximately 1.75 Tbbl (280 × 10 ^  m) of crude bitumen in them. About 10% of the oil in place , or 173 Gbbl (27.5 × 10 ^  m), is estimated by the government of Alberta to be recoverable at current prices, using current technology, which amounts to 97% of Canadian oil reserves and 75% of total North American petroleum reserves. Although

2349-505: The Peace River oil sands deposit is the smallest of four large deposits of oil sands of the Western Canadian Sedimentary Basin formation. The Peace River oil sands lie, generally, in the watershed of the Peace River . The Peace River oil sands deposits are the smallest in the province. The largest, the Athabasca oil sands , are located to the east. The second largest the, Cold Lake oil sands deposit

2436-629: The Sumerians and Babylonians , although it was also found in the Levant and Persia . The area along the Tigris and Euphrates rivers was littered with hundreds of pure bitumen seepages. The Mesopotamians used the bitumen for waterproofing boats and buildings. In Europe, they were extensively mined near the French city of Pechelbronn , where the vapour separation process was in use in 1742. In Canada,

2523-548: The oil industry , there was no need for stimulation to improve recovery efficiency, because supply vastly outstripped demand and leaving "difficult" oil in the ground was economically expedient. Two world wars , followed by huge economic growth resulted in surging demand for cheap portable energy, while the availability of new conventional oil and gas resources declined. The industry initially sought to enhance recovery of trapped oil and gas, using techniques like restricted , or low volume hydraulic fracturing to stimulate

2610-673: The 18th and 19th centuries. Kelsey's peace initiatives failed, and he was unable to open trade relations with the Naywatame. They were afraid to make a journey across enemy Assiniboine territory to go to York Factory. Kelsey wintered with the Indians and returned to York Factory in the summer of 1692, accompanied by numerous Assiniboine and Cree eager for trade with the HBC. Kelsey returned to England in 1693, reenlisted in 1694 and returned to York Factory. In 1694 and again in 1697, York Factory

2697-424: The 2008 economic downturn work on new projects has been deferred. Petroleum is not produced from oil sands on a significant level in other countries. The Alberta oil sands have been in commercial production since the original Great Canadian Oil Sands (now Suncor Energy ) mine began operation in 1967. Syncrude 's second mine began operation in 1978 and is the biggest mine of any type in the world. The third mine in

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2784-534: The Alberta oil sands. Russia holds oil sands in two main regions. Large resources are present in the Tunguska Basin , East Siberia , with the largest deposits being Olenyok and Siligir . Other deposits are located in the Timan-Pechora and Volga-Urals basins (in and around Tatarstan ), which is an important but very mature province in terms of conventional oil, holds large amounts of oil sands in

2871-700: The Alberta-Saskatchewan border, extending into Saskatchewan and approaching the Montana border. Note that, although adjacent to Alberta, Saskatchewan has no massive deposits of bitumen, only large reservoirs of heavy oil >10°API. Most of the Canadian oil sands are in three major deposits in northern Alberta. They are the Athabasca-Wabiskaw oil sands of north northeastern Alberta, the Cold Lake deposits of east northeastern Alberta, and

2958-587: The Athabasca Oil Sands, the Albian Sands consortium of Shell Canada , Chevron Corporation , and Western Oil Sands Inc. (purchased by Marathon Oil Corporation in 2007) began operation in 2003. Petro-Canada was also developing a $ 33 billion Fort Hills Project, in partnership with UTS Energy Corporation and Teck Cominco , which lost momentum after the 2009 merger of Petro-Canada into Suncor. By 2013 there were nine oil sands mining projects in

3045-504: The Athabasca deposit is the only one in the world which has areas shallow enough to mine from the surface, all three Alberta areas are suitable for production using in-situ methods, such as cyclic steam stimulation (CSS) and steam-assisted gravity drainage (SAGD). The largest Canadian oil sands deposit, the Athabasca oil sands is in the McMurray Formation , centered on the city of Fort McMurray, Alberta . It outcrops on

3132-709: The Athabasca oil sands deposit: Suncor Energy Inc. (Suncor), Syncrude Canada Limited (Syncrude)'s Mildred Lake and Aurora North, Shell Canada Limited (Shell)'s Muskeg River and Jackpine, Canadian Natural Resources Limited (CNRL)'s Horizon, Imperial Oil Resources Ventures Limited (Imperial), Kearl Oil Sands Project (KOSP), Total E&P Canada Ltd. Joslyn North Mine and Fort Hills Energy Corporation (FHEC). In 2011 alone they produced over 52 million cubic metres of bitumen. Canadian oil sand extraction has created extensive environmental damage, and many first nations peoples, scientists, lawyers, journalists and environmental groups have described Canadian oil sands mining as an ecocide . From

3219-537: The Athabasca tar sands, are large deposits of oil sands rich in bitumen , a heavy and viscous form of petroleum, in northeastern Alberta , Canada. These reserves are one of the largest sources of unconventional oil in the world, making Canada a significant player in the global energy market. As of 2023, Canada's oil sands industry, along with Western Canada and offshore petroleum facilities near Newfoundland and Labrador, continued to increase production and were projected to increase by an estimated 10% in 2024 representing

3306-656: The Atlantic Ocean, appointed as Deputy Governor of York Factory, which the British had recaptured from the French. In 1717, he was appointed as Governor of York Factory and in 1718 as Governor of all the Hudson's Bay settlements. In 1719 and 1721, he undertook missions to the Arctic, where he met with Inuit and searched for copper deposits. In 1722, Kelsey was recalled to England. Various publications have been derived from his writings: He died on 1 November, 1724 and

3393-506: The Canadian provinces of Alberta and Saskatchewan . If 30% of this oil could be extracted, it could supply the entire needs of North America for over 100 years at 2002 consumption levels. These deposits represent plentiful oil, but not cheap oil. They require advanced technology to extract the oil and transport it to oil refineries . The oil sands of the Western Canadian Sedimentary Basin (WCSB) are

3480-541: The Clearwater River to Athabasca in 1778, saw the deposits and wrote of "springs of bitumen that flow along the ground". In 1787, fur trader and explorer Alexander MacKenzie on his way to the Arctic Ocean saw the Athabasca oil sands, and commented, "At about 24 miles from the fork (of the Athabasca and Clearwater Rivers) are some bituminous fountains into which a pole of 20 feet long may be inserted without

3567-526: The Great Plains. (Another source mentions the presence of the "Esinepoets" people (Assiniboine) on the Prairie about that time.) At Deering's Point, Kelsey was still in the austere Taiga boreal forest of northern Canada. His apparent goal was to reach the First Nations people of the richer lands of the Aspen Parkland and prairies to his south and west. Accompanied by Cree , Kelsey ascended

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3654-581: The Synenco Energy (now owned by TotalEnergies ) Northern Lights mine, and Suncor's Fort Hills mine. Unconventional oil Unconventional (oil and gas) reservoirs , or unconventional resources (resource plays) are accumulations where oil and gas phases are tightly bound to the rock fabric by strong capillary forces , requiring specialized measures for evaluation and extraction . Oil and gas are generated naturally at depths of around 4 or 5 kms below Earth’s surface . Being lighter than

3741-481: The US market, and Canada's total exports of oil to the US have become several times as great as Venezuela's. By 2016, with the economy of Venezuela in a tailspin and the country experiencing widespread shortages of food, rolling power blackouts, rioting, and anti-government protests, it was unclear how much new oil sands production would occur in the near future. In May 2008, the Italian oil company Eni announced

3828-454: The United States, and the country is poised to become a significant driver of global crude oil production growth in 2024. The exploitation of these resources has stirred debates regarding economic development, energy security, and environmental impacts, particularly emissions from the oilsands, prompting discussions around emissions regulations for the oil and gas sector. The Cold Lake oil sands are northeast of Alberta's capital, Edmonton , near

3915-461: The Venezuelan oil sands, where the extra-heavy oil is about 50 degrees Celsius , the typical oil recovery rates are about 8–12%. Canadian oil sands are much colder and more biodegraded, so bitumen recovery rates are usually only about 5–6%. Historically, primary recovery was used in the more fluid areas of Canadian oil sands. However, it recovered only a small fraction of the oil in place , so it

4002-491: The abundance of beaver in the many ponds and lakes of the aspen parkland. Continuing his journey, possibly to a point south and west of Saskatoon , Kelsey tried to make peace between the Assiniboine and their neighbours, the Naywatame poets. It is unclear who the Naywatame were; Kelsey commented "they knew not the use of canoes," which indicates that they were Plains Indians. Scholars have advanced several theories as to

4089-664: The amount that can be produced depends on technological evolution . Rapid technological developments in Canada in the 1985–2000 period resulted in techniques such as steam-assisted gravity drainage (SAGD) that can recover a much greater percentage of the OOIP than conventional methods. The Alberta government estimates that with current technology, 10% of its bitumen and heavy oil can be recovered, which would give it about 200 billion barrels (32 billion m) of recoverable oil reserves. Venezuela estimates its recoverable oil at 267 billion barrels (42 billion m). This places Canada and Venezuela in

4176-542: The beginning of 2022 oil sands extraction in Alberta has sharply increased, overpassing by far the level of 2014. High oil prices is one of the causes. In 2024 it is projected to increase more, so Canada can become a leader in oil production. No significant development of Venezuela's extra-heavy oil deposits was undertaken before 2000, except for the BITOR operation which produced somewhat less than 100,000 barrels of oil per day (16,000 m/d) of 9°API oil by primary production. This

4263-557: The border with Saskatchewan. A small portion of the Cold Lake deposit lies in Saskatchewan. Although smaller than the Athabasca oil sands, the Cold Lake oil sands are important because some of the oil is fluid enough to be extracted by conventional methods. The Cold Lake bitumen contains more alkanes and less asphaltenes than the other major Alberta oil sands and the oil is more fluid. As a result, cyclic steam stimulation (CSS)

4350-485: The combined area covered by the Canadian deposits. In general, the Canadian deposits are found over a much wider area, have a broader range of properties, and have a broader range of reservoir types than the Venezuelan ones, but the geological structures and mechanisms involved are similar. The main differences is that the oil in the sands in Venezuela is less viscous than in Canada, allowing some of it to be produced by conventional drilling techniques, but none of it approaches

4437-481: The cost of production is so much higher at oil sands petroleum-mining operations, the breakeven point is much higher than for sweeter lighter oils like that produced by Saudi Arabia , Iran , Iraq , and, the United States. Oil sands productions expand and prosper as the global price of oil increased to peak highs because of the Arab oil embargo of 1973 , the 1979 Iranian Revolution , the 1990 Persian Gulf crisis and war ,

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4524-444: The degree by which they have been degraded from the original conventional oils by bacteria . The 1973 and 1979 oil price increases, and the development of improved extraction technology enabled profitable extraction and processing of the oil sands. Together with other so-called unconventional oil extraction practices, oil sands are implicated in the unburnable carbon debate but also contribute to energy security and counteract

4611-580: The first large-scale oil sands mine in 1967, bitumen has been extracted on a commercial scale and the volume has grown at a steady rate ever since. A large number of oil sands mines are currently in operation and more are in the stages of approval or development. The Syncrude Canada mine was the second to open in 1978, Shell Canada opened its Muskeg River mine (Albian Sands) in 2003 and Canadian Natural Resources Ltd (CNRL) opened its Horizon Oil Sands project in 2009. Newer mines include Shell Canada's Jackpine mine, Imperial Oil 's Kearl Oil Sands Project ,

4698-584: The identity of the Naywatame. On linguistic grounds, they are proposed to be Siouan, possibly Stoney or another people closely related to the Assiniboine. Identification of them as Hidatsa or Mandan is proposed, although those tribes were resident 300 miles further south along the Missouri River in North Dakota . Possibly they were Gros Ventre or Blackfeet , Algonquin speakers who were discovered living in this region by later explorers in

4785-577: The international price cartel OPEC . According to the Oil Climate Index, carbon emissions from oil-sand crude are 31% higher than from conventional oil. In Canada, oil sands production in general, and in-situ extraction, in particular, are the largest contributors to the increase in the nation's greenhouse gas emissions from 2005 to 2017, according to Natural Resources Canada (NRCan). The use of bituminous deposits and seeps dates back to Paleolithic times. The earliest known use of bitumen

4872-442: The large amounts of tar residue produced in urban areas as a by-product of the manufacture of coal gas for urban heating and lighting. The word " tar " to describe these natural bitumen deposits is really a misnomer, since, chemically speaking, tar is a human-made substance produced by the destructive distillation of organic material , usually coal . Since then, coal gas has almost completely been replaced by natural gas as

4959-529: The least resistance." In their May 2019 comparison of the "cost of supply curve update" in which the Norway-based Rystad Energy—an "independent energy research and consultancy"—ranked the "worlds total recoverable liquid resources by their breakeven price", Rystad reported that the average breakeven price for oil from the oil sands was US$ 83 in 2019, making it the most expensive to produce, compared to all other "significant oil producing regions" in

5046-473: The mountains. The light oil migrated up-dip through hydro-dynamic transport from the Rockies in the southwest toward the Canadian Shield in the northeast following a complex pre-Cretaceous unconformity that exists in the formations under Alberta. The total distance of oil migration southwest to northeast was about 500 to 700 km (300 to 400 miles). At the shallow depths of sedimentary formations in

5133-535: The northeast, massive microbial biodegradation as the oil approached the surface caused the oil to become highly viscous and immobile. Almost all of the remaining oil is found in the far north of Alberta, in Middle Cretaceous (115 million-year old) sand-silt-shale deposits overlain by thick shales, although large amounts of heavy oil lighter than bitumen are found in the Heavy Oil Belt along

5220-476: The oil or gas are derived from conventional or unconventional reservoirs. Their carbon footprints , however, are radically different: conventional reservoirs use the natural energy in the environment to flow oil and gas to the surface unaided; unconventional reservoirs require putting energy into the ground for extraction, either as heat ( e.g. tar sands and oil shales) or as pressure ( e.g. shale gas and CBM ). The artificial transfer of heat and pressure require

5307-535: The oil sands are on Canadian Forces Base Cold Lake . CFB Cold Lake's CF-18 Hornet jet fighters defend the western half of Canadian air space and cover Canada's Arctic territory. Cold Lake Air Weapons Range (CLAWR) is one of the largest live-drop bombing ranges in the world, including testing of cruise missiles. As oil sands production continues to grow, various sectors vie for access to airspace, land, and resources, and this complicates oil well drilling and production significantly. Located in northwest-central Alberta ,

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5394-401: The pockets are permeable , they are referred to as conventional reservoirs . Wells are drilled into these reservoirs to create a path for oil and gas to reach the surface. When pressure differences are relatively high, oil and gas rise to the well bore naturally through buoyancy. Where the pressures are low, flow can be assisted with pumps (e.g. nodding donkeys ). In the early days of

5481-521: The pre- Cretaceous sedimentary rock formations underlying most of the sub-surface of Alberta, depressing the rock formations in southwest Alberta up to 8 km (5 miles) deep near the Rockies, but to zero depth in the northeast, where they pinched out against the igneous rocks of the Canadian Shield , which outcrop on the surface. This tilting is not apparent on the surface because the resulting trench has been filled in by eroded material from

5568-462: The qualities of the reservoir and/or the physical properties of the oil and gas ( i.e. permeability and/or viscosity ). These characteristics significantly impact predictability (risk to find, appraise and develop) and in turn the methods of extraction from those reservoirs such as fracking . Conventional oil & gas accumulations are concentrated by buoyancy driven aquifer pathways into discrete geological traps, which are detectable from

5655-518: The region were still on foot at this time, the later horse culture of the Plains tribes not having yet reached Canada. On 20 August, Kelsey described a "great store of buffalo" and "silver-haired" bears, the first sightings by a European of buffalo and grizzly bears on the northern Great Plains. His party had gone hungry during their ascent of the journey through the taiga, but now Kelsey and his indigenous companions feasted on buffalo. Kelsey also noted

5742-465: The remoter [First Nations people] to a trade with us." Beaver pelts were the item most desired by the HBC. Kelsey left York Factory on 12 June 1690 with a group of indigenous people and proceeded by canoe up the Nelson River (southwest). He carried with him a sample of hatchets, beads, and tobacco the company offered. Kelsey and the First Nations people reached a place he named Deering's Point, probably near present-day The Pas, Manitoba , on 10 July after

5829-784: The reservoir further, thereby reducing the volume of oil and gas left in the ground to an economic minimum. By the turn of the millennium , a new kind of energy resource was required, particularly by the USA, who were driven to achieve energy independence . The USA turned to unconventional reservoirs to achieve their goals, which had been known about for decades but had previously been too costly to be economically attractive. Today, unconventional reservoirs include basin-centered gas , shale gas , coalbed methane (CBM), gas hydrates , tar sands , light tight oil and oil shale , mostly from North America. The distinction between conventional and unconventional resources reflects differences in

5916-402: The river. It is approximately 600 kilometres (370 mi) from east to west, and 70 kilometres (43 mi) from north to south, with an area about 55,314 square kilometres (21,357 sq mi). The oil sands consist of large deposits of extra heavy crude . Venezuela's heavy oil deposits of about 1,200 Gbbl (190 × 10 ^  m) of oil in place are estimated to approximately equal

6003-485: The rock by strong capillary forces incapable of flowing naturally through buoyancy. The limits of an unconventional field are therefore usually defined by relatively expensive well testing for delivery. Extraction from unconventional reservoirs requires changing the physical properties of the reservoir, or the flow characteristics of the fluid, using techniques such as fracking or steam injection . The technical and commercial risk associated with unconventional reservoirs

6090-569: The same league as Saudi Arabia, having the three largest oil reserves in the world . There are numerous deposits of oil sands in the world, but the biggest and most important are in Canada and Venezuela, with lesser deposits in Kazakhstan and Russia. The total volume of non-conventional oil in the oil sands of these countries exceeds the reserves of conventional oil in all other countries combined. Vast deposits of bitumen—over 350 billion cubic metres (2.2 trillion barrels) of oil in place —exist in

6177-410: The sands have high porosity, no significant cohesion, and a tensile strength close to zero. The sands are saturated with oil which has prevented them from consolidating into hard sandstone. The magnitude of the resources in the two countries is on the order of 3.5 to 4 trillion barrels (550 to 650 billion cubic metres) of original oil in place (OOIP). Oil in place is not necessarily oil reserves , and

6264-554: The surface (zero burial depth) about 50 km (30 miles) north of Fort McMurray, where enormous oil sands mines have been established, but is 400 m (1,300 ft) deep southeast of Fort McMurray. Only 3% of the oil sands area containing about 20% of the recoverable oil can be produced by surface mining , so the remaining 80% will have to be produced using in-situ wells. The other Canadian deposits are between 350 and 900 m (1,000 and 3,000 ft) deep and will require in-situ production. The Athabasca oil sands , also known as

6351-458: The surface as in Canada, meaning none of it can be produced using surface mining. The Canadian deposits will almost all have to be produced by mining or using new non-conventional techniques. The Orinoco Belt is a territory in the southern strip of the eastern Orinoco River Basin in Venezuela which overlies one of the world's largest deposits of petroleum. The Orinoco Belt follows the line of

6438-403: The surface to use surface mining. Conventional crude oil is normally extracted from the ground by drilling oil wells into a petroleum reservoir , allowing oil to flow into them under natural reservoir pressures, although artificial lift and techniques such as horizontal drilling , water flooding and gas injection are often required to maintain production. When primary production is used in

6525-830: The surface. These traps constitute relatively small but high resource density fields . Most conventional oil or gas fields initially flow naturally by buoyancy alone into the well bore, with their limits defined by fluid mechanics measurable from the well bore ( e.g. fluid pressure, OWC/GWC etc. ). In general, the technical and commercial risk associated with discrete conventional reservoirs can be reduced using relatively inexpensive remote techniques such as reflection seismology and extracted with relatively few appraisal and development wells. Unconventional reservoirs, in contrast, are regionally dispersed over large areas with no indicative trap geometry that can be used for predictive purposes. The oil and gas in unconventional reservoirs are generally low density resources, frequently trapped in

6612-513: The surface. The Orinoco deposits are early Tertiary (50 to 60 million years old) sand-silt-shale sequences overlain by continuous thick shales, much like the Canadian deposits. In Venezuela, the Orinoco Belt oil sands range from 350 to 1,000 m (1,000 to 3,000 ft) deep and no surface outcrops exist. The deposit is about 500 km (300 miles) long east-to-west and 50 to 60 km (30 to 40 miles) wide north-to-south, much less than

6699-425: The use of large volumes of fresh water creating supply and disposal issues . The distribution of the resource over large areas creates land use issues, with implications for local communities on infrastructure, freight traffic and local economies. Impact on the environment is an unavoidable consequence of all human activity but the difference between the impact of conventional reservoirs compared with unconventional

6786-479: The water saturating rocks below the water table , the oil and gas are driven by buoyancy up through aquifer pathways towards Earth's surface over time. Some of the oil and gas percolate all the way to the surface as natural seepages , either on land or on the sea floor. The rest remains trapped underground by geological barriers in a variety of trap geometries . In this way, underground pockets of oil and gas accumulate by displacing water in porous rock . If

6873-409: The winter near Deering's Point. In spring 1691, Kelsey received a supply of trade goods from York Factory; his orders were to obtain what beaver pelts he could and to return the following year with as many First Nations people as possible to introduce them to the trading post. On 15 July 1691, he set out from Deering's Point "to discover and bring to commerce the "Naywatame poets," an Indian people of

6960-543: The world's discovered bitumen in place at the time, with an original oil-in-place (OOIP) reserve of 260,000,000,000 cubic metres (9.2 × 10 cu ft) (1.6 trn barrels ), an amount comparable to the total world reserves of conventional oil. The Eastern Venezuelan Basin has a structure similar to the WCSB, but on a shorter scale. The distance the oil has migrated up-dip from the Sierra Oriental mountain front to

7047-494: The world's reserves of lighter oil. In 2009, the US Geological Survey (USGS) increased its estimates of the reserves to 513 Gbbl (81.6 × 10 ^  m) of oil which is "technically recoverable (producible using currently available technology and industry practices)." No estimate of how much of the oil is economically recoverable was made. In addition to the three major Canadian oil sands in Alberta, there

7134-585: The world. The International Energy Agency made similar comparisons. The price per barrel of heavier, sour crude oils lacking in tidewater access—such as Western Canadian Select (WCS) from the Athabaska oil sands, are priced at a differential to the lighter, sweeter oil —such as West Texas Intermediate (WTI). The price is based on its grade—determined by factors such as its specific gravity or API and its sulfur content—and its location—for example, its proximity to tidewater and/or refineries. Because

7221-579: Was buried on 2 November 1724 in St Alfege Church, Greenwich . He was distinguished for his ability to establish good relations with Indians, which enabled him to be mostly successful as a trader. In 1931, Kelsey was recognized as a Person of National Historic Significance by the government of Canada. A plaque commemorating this can be found at Devon Park in The Pas, Manitoba . Numerous places and institutions have been named in his honour. He

7308-483: Was by Neanderthals , some 40,000 years ago. Bitumen has been found adhering to stone tools used by Neanderthals at sites in Syria. After the arrival of Homo sapiens , humans used bitumen for construction of buildings and waterproofing of reed boats , among other uses. In ancient Egypt, the use of bitumen was important in preparing mummies . In ancient times, bitumen was primarily a Mesopotamian commodity used by

7395-672: Was captured by the French. Kelsey returned to England at these times, on the second occasion as a prisoner of the French. In 1698, he went back to the New World, this time to Fort Albany on James Bay. In 1701, he became master of a trading frigate, the Knight , in Hudson Bay, continuing the trade in beaver pelts. In 1703, he returned for a time to England. In 1705 Kelsey went back to Fort Albany as chief trader. In 1712, he returned again to England. In 1714 he made his sixth journey across

7482-455: Was mostly shipped as an emulsion ( Orimulsion ) of 70% oil and 30% water with similar characteristics as heavy fuel oil for burning in thermal power plants. However, when a major strike hit the Venezuelan state oil company PDVSA , most of the engineers were fired as punishment. Orimulsion had been the pride of the PDVSA engineers, so Orimulsion fell out of favor with the key political leaders. As

7569-486: Was posted at a fort on Hudson's Bay near present-day York Factory, Manitoba , near the mouth of the Nelson River on Hudson Bay . Kelsey started exploring in the winter of 1688–1689 when he and a First Nations boy carried mail overland 200 miles southeast from Fort York to Fort Severn , another HBC post. He was described as "a very active Lad delighting much in Indians' company, being never better pleased than when he

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