Wednesday 19 June 2013

Week 2 - Tar Sands

Canada's Tar Sands



In 2005, Canada was second only to Saudi Arabia in crude oil reserves, but almost 97% of Canada's reserve is in tar sands. The Athabasca Oil Sands development in northern Alberta currently produces 1.2 million barrels of oil a day and it is expected that increased production capabilities will add 2.4 million barrels per day by the year 2016. But removing that oil from the tar sands requires a lot of energy. Currently the tar sands project burns natural gas to heat the steam that removes the oil. The tar sands project is the largest single producer of greenhouse gases in North America.

What are some of the harmful effects of the tar sands, and the greenhouse gases they produce?

Should businesses and consumers be concerned about the effects?

Useful Links:

http://oilsands.alberta.ca/

http://www.energy.gov.ab.ca/OurBusiness/oilsands.asp

http://www.cbsnews.com/stories/2006/01/20/60minutes/main1225184.shtml

22 comments:

  1. As the largest producer of greenhouse gases in North America the Tar Sands potentially pose a very big threat to the environment. The gases they produce make the environment heat up due to the greenhouse effect. As CBS said: "Creating energy from oil sands requires so much energy that the oil companies wind up spiking greenhouse gas emissions".

    The ground is taking a beating because of the open pit mining techniques used to extract the oil sands. "Take a helicopter ride over the mines and you'll think you're flying over the moon after a moonquake." another source from CBS said. The mining is taking away minerals and dirt some companies could use to create more materials and it goes to waste.

    Consumers and Businesses should be concerned. If to little is done about the gases or if the mining continues to be this harmful the environmentalists will cry out. If that happens prices could rise due to supply constraint or drop due to a boycott on the oil sands. If the prices fluctuate it could create an unstable economy for the tar sands and Alberta. So yes they should be concerned.

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    1. You refer to quite a domino effect. I wonder if there would ever be a large enough boycott spurred on by the environmentalists to create a considerable impact on supply needs.

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  2. There is a lot of money to be made in the tar sands although it is a very expensive process. The oil is inside the sand so in order to separate the oil from the sand you must put the sand in heated water. The oil is then sent to a refinery. Oil refineries are also very expensive to build and operate. The companies use billions of gallons of fresh water and huge quantities of natural gas to heat this water. If little is done about this catastrophe our fresh water will be wasted. In addition, all the natural gas that is being used to heat the oil could be used instead to heat millions and millions of Canadian homes. The amount of greenhouse gases has decreased per barrel of oil, however, with the huge demand of oil, especially from the United States, the overall greenhouse gases are increasing. Greenhouse gases have a negative effect on the environment. They cause extreme weather changes, poor air quality and loss of ecosystems.

    Businesses and consumers should be concerned about the harmful effects this has on our environment. The tar sands requires a lot of energy and because there is a limited supply, the prices could rise. If the amount of greenhouse gases is not controlled, the agriculture industry will suffer. This will mean we will depend on imports for produce. Consumers will be faced with increased costs and there will be more unemployed Canadians resulting in a poorer economy.

    Companies in the tar sands need to show corporate social responsibility. They can do this by becoming aware of the environment that they are harming. Despite the negative effects of the tar sands on the environment they are extremely important to Canada’s economy because they create more jobs and strengthen trade with the U.S. CBS News said, “...another 100,000 people are needed in Fort McMurray.”

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    1. You bring up a very valid point Trevor - although the Tar Sands have such negative consequences on our environment, they create an enormous amount of jobs. The question of what is more important comes to mind and I guess that is where the ethical dilemma comes into play as it is not an easy question to answer for many people.

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    1. The harmful effects caused by mining oil from tar sands in Northern Alberta are not easy to overlook. The greenhouse gas released from getting energy from the oil sands spike so much that the Athabasca Oil project becomes the largest producer in greenhouse gas emissions in North America. According to Elizabeth May, the director of the Sierra Club of Canada, “They use energy in volumes that exceed any other production of oil crude anywhere on the planet”. Not only does the Athabasca Oil project affect the atmosphere, but the land as well. Environmentalists claim that the oil company is “digging up the entire province”. The land where the tar sand is collected is full of craters and completely bare.

      However, oil sand development benefits all Canadians through employment opportunities. According to Brian Jean, who represents Fort McMurray in the Canadian parliament, another 100,00 people are needed to work at the oil sands. Another benefit from mining from the oil sands is the generation of royalties and taxes that help pay for government services and programs. Closing down the Athabasca Oil Sands development because of environmental issues would lead to a loss of all these advantages.

      Businesses should worry about the effects caused by mining oil from tar sands because of the large amount of bad publicity they are getting from environmentalists. According to my “Business: Leadership and Environment” textbook, the public image of a company is very important because it influences a consumer’s choice of buying a product. Protesting environmentalists can raise awareness about the bad effects this type of business has on the environment. If the tar sand mining business has too much of a harmful effect on the environment, it can be closed. Instead of simply worrying, businesses can carry out their moral responsibilities by reducing the amount of greenhouse gasses produced from mining oil. Consumers should also be worried about the greenhouse gasses released from mining oil from tar sands. This is because if the Athabasca Oil business in Alberta (which produces 1.2 million barrels of oil a day) is closed, the price of oil in Canada will rise because we will have to buy it from somewhere else. This also means the American consumers will have to reduce their dependence on oil, as according to T. Boone Pickens, a legendary Texas oil tycoon, “With their oil, I think we're going to need them a lot more than they need us”. Pickens was referring to America’s newly developed dependence on the large amount of oil available in Alberta.

      To me, the ethical dilemma is whether one should value the economy or the environment more. I think that a good solution would be to find a way to remove the oil from tar sands without compromising the environment. According to http://oilsands.alberta.ca "Alberta is regulating GHG emissions in the oil sands region by being the only jurisdiction in North America with mandatory reduction targets for large emitters across all sectors. Strong investments in clean energy technology and a price on carbon will also continue to reduce per-barrel emissions." This means that the Alberta government is already starting to take the steps towards a cleaner way to remove oil from tar sands without affecting the environment.

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    2. The question of whether the environment or economy is more important is a question I debate within myself as well. The Tar Sands of Alberta are such a crucial part of the Canadian economy and, as you stated above, the U.S. is also highly dependant and, therefore, one of our more valued customers, so if you take that away from Canada, what will be the consequences? On the other hand, if these companies continue to damage the environment at the rate they are going and, as you say, avoid their moral responsibilities then I wonder how much does a strong economy really matter? Just a thought!

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  4. Some of the effects that tar sands produce is that it takes lots of energy to remove the oil from the tar sands, which requires the burning of natural gases, releasing the harmful greenhouse gases. Refining tar sand into something of use is the leading contributor to greenhouse gas production
    Greenhouse gases are one of the leading causes of global warming.
    They should because the consumers are buying products that are burning natural gases and some others that cause global warming. The business that is producing this product is endangering the environment and making their employees use lots of their energy to separate the oil from the tar sands.

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    1. I agree with this. Its a huge amount of gases being released for a little bit of oil output. Its also very expensive to do so. In the Arab countries its very cheap to do this but since this is heavy oil it costs more and sells for less. In my view it just doesn't make sense in any way. The environment as much as they try to help it, wont be healed for a long time.

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  5. Despite it being the largest producer of greenhouse gasses in North America, the oil sands are nowhere near as harmful to the environment as some people would have us believe. Due to Canadian environmental regulations on mines, the oil sands are required to refill the mine when they are done and plant trees over them. In fact as soon as 20 years after their done it could be completely reforested.

    While the environment is important we should also care about the economy. And the tar sands are quite possibly one of the best things to happen to our economy. It provides 100 000 Canadians with well paying jobs. On top of that there are the royalties and taxes that the government receives, which all can help fund government services and programs.

    But possibly the most beneficial part of the oil sands is the leverage it gives Canada over other countries epically America. With the Middle East becoming increasingly unstable it getting very dangerous to get all our oil from them so America is becoming increasingly dependent on Canada for their oil. This gives allot of power in foreign affairs because we always have the threat of no longer providing them oil. This could help make Canada`s role in the world a lot bigger with the increasing demand for oil.

    Consumers would be a little worried about the environmental effects of the oil sands. But in the end of the day would need something to power their cars and homes. Businesses should be a little worried about the bad media and negative attention. However they shouldn`t be worried enough to stop or reduce the amount of oil they produce. They should instead invest a little bit into finding a greener way to extract oil. This would ultimately increase their profit, due to a decrease in the amount of money they need to spend to power all of their equipment. So to conclude I think that businesses should continue mining in the oil sands just like they are today.

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    1. Interesting take on the subject Asheesh. I think it is ideal to have two sides of the story displyed, especially when discussing an ethical debate in business. I especially appreciate your point regarding the tar sand's impact on Canada's place in the world market.

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  6. The Tar Sands are so big that you need so much energy to finance the whole mining of the oil.
    The effects of all the machines, which are working all day long, is that dangerous and much gases comes in the air and the gases damage the environment.

    I think, that businesses and consumers need to be concerned, because all the damage, which arise by gas, is worse than the lot of oil which is produced every day. With it comes the huge cost for energy. This facts is not good for the environment and top the positive result, the oil. The environment is important than money so thats the reason, because i think so.

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    1. While using oil is bad for the environment the whole world is not just going to stop using oil. Also the oil sands are putting money towards greener ways to get mine the oil. While it is important to think about the future it also important to think about the present. If we stopped producing oil it would be a giant hit to the Canadian economy. There would be 100,000 people now without jobs. Also a majority of our global power would go with the oil.

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  7. There is no doubt that the Tar sands have opened up various jobs for Canadians and made millions of dollars, but how much of the environment are we willing to put at risk? This intense amount of green house gases is causing the world's temperature to rise faster. In 2016, production will have increased, instead of making 1.2 million barrels of oil a day we will be producing 2.4 million. The energy it takes to manufacture this oil is already adding enough to global warming, how much of it will we be using in the future?

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    1. Just as some of your classmates have done, you bring forth the question of what is most important to us as a society - the environment or our economy. The numbers you state are alarming to say the least Geeta.

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  8. The Tar Sand in Alberta Canada, are the third-largest company in the world. It has increased with making oil from 2008 making only 1.31 million barrels per day. They are expecting in 2018 to be making 3 million barrels per day. I believe there is positives and negatives to the Tar Sand in Alberta.
    There are many positives to the business one is that they create many jobs towards people in Canada and second they give us transportation, such as less money to pay for gas. Oil companies are a great way for people to get jobs because in the article “Brian Jean says another 100,000 people are needed in Fort McMurray.” The tar sands also help with trading with America, because they can give them oil and get something back later on.
    The harmful effects of the company are towards the environment. All the gasses that are going into our atmosphere from the company making the oil and people using the oil in their cars. All the gasses are destroying the world’s clean atmosphere. They also cut down many of the forests in Alberta to create the company and get the oil and they said they would replant them after a while, but that might not happen.
    Over all I think tar sands are harmful to the earth and people, but we can’t exactly live without oil. I think businesses and companies shouldn’t be majorly affected by the tar sands because there aren’t a lot of companies around them. Also even if they were the only problems they would face would be noise and the gases. Furthermore, I believe the companies shouldn’t get a big effect from the tar sands and gasses.

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  9. What are some of the harmful effects of the tar sands, and the greenhouse gases they produce?
    Should businesses and consumers be concerned about the effects?

    It is undeniable that, there are many harmful effects of the tar sands and the greenhouse gases they produce. Canada, specifically the Athabasca Oil project, is the largest producer of greenhouse gases in North America. In order for the oil to be removed, the project burns natural gases to heat the steam to remove the oil. This in turn, is released into the atmosphere. Producing a barrel of tars sand oil emits three times more greenhouse gases than producing a barrel of conventional oil, making tar sands oil some of the dirtiest on the planet. If current development plans proceed, by 2020 tar sands will release twice as many greenhouse gases as are currently produced by all the cars and trucks in Canada. This isn’t the only problem with the removal of oil from the tar sands. There is also the issue of Canada’s boreal forest, which is one of the largest, most intact old-growth forests left on Earth. It contains more carbon per hectare than any other ecosystem and provides ecosystem services that are globally important in mitigating climate change. The more forest disturbed for the tar sands, the more stored carbon released into the environment.

    Although businesses and consumers should be concerned about the tar sands, it would be a major blow to Canada’s economy if we could no longer produced oil. Alberta realizes this, therefore, over the next 5 years $6.1 million will be invested in green house technology. Rick George, of Suncor Energy, insists in the future people won’t recognize the mines. “So what you see today is a mine. What you’ll see 10 years from now is a replanted forest,” he says. In 2009, the Alberta government put a 20 year strategic plan in place called, Responsible Actions; A Plan for Alberta Oil Sands. This strategic plan prioritizes clean energy production, wise energy use, and sustain economic growth. If Alberta is successful, economy will grow and hopefully, reduce the environmental footprint of oil sands development.

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    1. I really like the fact that you mention the strategic plan titled "Responsible Actions: A Plan for Alberta oil Sands" as it shows that there is an intention there to uphold some moral responsibility to the land.

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  10. The tar sands create many, many Canadian jobs. Also, oil is a major Canadian export, contributing to our good economy. There are effects the Tar Sands have on the environment, negative effects. The tar sands contribute to 5% of Canada's overall greenhouse gas emission. 80% of oil's greenhouse gasses are emitted by the consumer end-use, so what the consumer does with it emits a lot of greenhouse gasses. I think the most major thing greenhouse gasses affect, is on climate. Climate change is a very serious and important issue. Climate change is when there is a drastic change in the average weather patterns over a period of 30 years. In this case, temperatures are going up. This is because greenhouse gasses trap heat in the earth's atmosphere. Climate Change is not good for the environment, it is destroying animal habitats in places where there are supposed to have colder climates.
    Also, the tar sands themselves are ruining animal habitats. They take up a lot of space, and a lot of that land is now considered toxic. If birds, or any sort of animal happen to wander into the tar sands, they could die. It's a toxic site. Oil doesn't mix well with animals.
    Businesses and consumers should be concerned about the Tar Sands and how they area effecting the climate, animals, and environment in general. There's already so, so much pollution in our world, the tar sands simply contributes to this and makes our worlds' environmental problems bigger. Yes, the tar sands create many jobs. Yes, the tar sands give us 97% of one of our major exports. Yes, the tar sands boost our economy, but is compromising our environment for economy worth all of that?

    sources: Blog above
    http://environment.alberta.ca/apps/OSIPDL/Content/Posters/ClimateChange.pdf

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    1. You're right that the animal world is important to take care of as well. I especially appreciate your final question as it is the same one I have as well.

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  11. POSTED FOR LAREINA LIU

    The harmful effect of the tar sands is really serious. To remove because removing the oil from the tar sands requires a lot of energy. The tar sands burns natural gas to heat the steam that removes the oil. Too much burning may increase the amount of carbon dioxide in the air, which enhanced the green house effect.

    People should think about environment problems when they are doing business or consuming. As a business people, he or she should think about if the business will affect the environment, because we just have one earth and we need to take care of it but not just hurt it. As a consumer, we should choose the product which is produced without harming the earth. Because the is the basic ethic for being a good consumer.

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    1. I agree that the tar sands are bad for the environment but you are not taking into consideration that it would be a major blow to Canada's economy. Through my investigation, I discovered that Canada is in the midst of trying to rectify the issue of the environment. There is a strategic plan in place by the government of Alberta to prioritize the clean energy production and 20 years from now, they will be reducing the effects of the tar sands.

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