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The Canadian Oil Boom

AN EXCLUSIVE VISUALCAPITALIST INFOGRAPHIC THE CANADIAN OIL BOOM How Canada went from a global energy footnote to a major oil player CANADA'S OIL RESERVES Before 2003 After 2003 Parts of the Oil Sands became Canada had a mere 0.76% economically feasible for of world oil reserves, or extraction. 7 BILLION BARRELS This dramatically increased Canada's Some experts (including Clive Mather of estimate proven reserves to be proven reserves to 175 BILLION BARRELS 2 TRILLION BARRELS or more. TOP 5 WORLD OIL RESERVES That's twice the proven reserves of all of OPEC (in billions of barrels) Venezuela 297 Saudi Arabia 265 Canada 175 Iran 151 Iraq 143 CANADA'S OIL PRODUCTION 6TH in the world (1 million barrels of oil) Historical Forecast In 2009 Canada's oil production was 3.29 MILLION BARRELS 1960 1970 1980 1990 2000 2010 2020 per day. WHERE THE OIL IS Much of Canada's oil production is in the Prairies And the remaining production is off-shore Newfoundland 11.4% ALBERTA 68.8% Saskatchewan 16.1% British Columbia 1.5% Manitoba 0.7% THE CANADIAN OIL SANDS The oil sands have been known to exist for hundreds of years. In fact, First Nations people and fur traders in the area used bitumen to waterproof their canoes. The oil sands are the world's single largest petroleum resource. 1,700,000,000,000 BARRELS OF OIL WHAT IS "OIL SAND"? WHERE? ALBERTA CANADA Water Sand Clay Edmonton o Bitumen • Calgary Oil companies are interested in Top 20% can be surface mined BITUMEN 80% must be obtained through "in situ" extraction Bitumen is a thick, sticky form of crude oil that, in its natural state, is not recoverable from a conventional oil well. ECONOMIC VIABILITY Nearly 500 billion barrels of oil were discovered in the 1960s. FEWER OPTIONS In the 2000s, only 100 billion barrels were discovered. Oil discoveries have been declining since 1964 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 |WHAT REMAINS? Conventional Oil Oil Sands Bitumen Extra Heavy Oil Heavy Oil 30% 30% 25% | 15% There is still a large global oil supply, but remaining resources are becoming increasingly difficult to extract FASTER & CHEAPER EASE OF EXTRACTION Alberta ONSHORE Venezuela LIQUID OIL West Africa SHALLOW WATER LIQUID OIL Gulf Coast ONSHORE HEAVY OIL Canada Brazil Greenland Colorado Alaska AND Russia Utah Iraq OIL SANDS Wyoming Iran Persian Gulf ULTRA DEEP WATER OIL China Gulf Coast Russia Kazakhstan POLAR OIL SHALE OIL SLOWER & MORE EXPENSIVE It costs approximately 36% Extracting bitumen $30 to extract a 24% Upgrading bitumen to synthetic crude oil barrel of oil from the Oil Sands 40% Capital costs, taxes, rate of return, royalties, etc This means that it only recently became economically feasible to begin extracting it. PRICE OF OIL (1983-2009) 160 120 80 40 1983 1986 1989 1991 1994 1997 2000 2003 2006 2009 With oil prices forecasted to remain viable ENVIRONMENTAL CHALLENGES for production, the environmental impact of the oil sands has taken the spotlight. HERE ARE THE FACTS GREENHOUSE GAS EMISSIONS On a lifespan basis (production to consumption) the oil sands average about The Oil Sands account for 6.5% 70-80% 5-20% higher emissions over an average barrel of oil of emissions (regardless of where oil is from) comes from burning as fuel at its end use of Canada's greenhouse gas emissions In 2009 American coal-fired power plants produced 30x more emissions than the Oil Sands Water use per barrel of oil produced %3D WATER ISSUES Surface Mined 2–4 In Situ 0.5 The Oil Sands account for Tailing Ponds are a mixture of: 179 MILLION M Water 7% Clay Sand Residual Oil of water-use in 2009, mainly from the Athabasca River of Alberta's water usage Tailing Ponds OCcupy 0.5% 172KM² of the river's flow was used of Alberta Oil Sands producers recycle 80-95% of the water they use LAND ISSUES Open pit mining (20% of oil operations) destroys boreal forest and muskeg, which must be reclaimed DOLLARS AND CENTS Proven reserves are worth $14 trillion, which is equal to 10X CANADA'S CURRENT GDP. The value of the oil sands will play an increasingly vital role in Canada's economy and North American energy security. CANADIAN OIL IN CONTEXT THE END OF EASY OIL Less and less conventional oil has been discovered every year since 1964. The options for plentiful, cost efficient, and clean oil Sources are limited. The Venezuelan oil sands also contain 1.2 trillion barrels of oil, but have similar concerns to their Canadian counterparts. 1960 1970 1980 1990 2000 2010 2020 ENVIRONMENTAL REALITIES 32% 28% 24% Transportation The oil sands make up 6.5% of Canada's greenhouse gas emission, but are the fastest growing source nationwide. 20% 16% Fossil Fuels (power) 12% It is clear that the oil sands industry creates major environmental issues concerning air quality, water contamination, and land use that must be addressed as a high priority. Agriculture Oil Sands 8% 4% 0% Canada's GHG Emissions by Sector WHAT DO YOU THINK? Two-way, open communication is vital for all parties moving forward. Join the discussion on Twitter by using the hashtag: #VCOIL Visual Capitalist is committed to providing independent and non-biased content for educational purposes. Visual Capitalist received no direct funding from third-party companies or organizations to produce this infographic. VISUAL CAPITALIST Educating a new generation of investors on resource investing and managment VISUALCAPITALIST Oil flow Steam flo

The Canadian Oil Boom

shared by visualcap on Mar 27
The Canadian Oil Sands are the world’s single largest petroleum resource at 1.7 trillion barrels. With conventional oil supply decreasing, heavy oil projects such as the oil sands become more attrac...


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