A Comprehensive Guide to the Alberta Oil Sands

A COMPREHENSIVE GUIDE TO THE ALBERTA OIL SANDS UNDERSTANDING THE ENVIRONMENTAL AND HUMAN IMPACTS , EXPORT IMPLICATIONS , AND POLITICAL , ECONOMIC , AND INDUSTRY INFLUENCES Michelle Mech May 2011 (LAST REVISED MARCH 2012) A COMPREHENSIVE GUIDE TO THE ALBERTA OIL SANDS UNDERSTANDING THE ENVIRONMENTAL AND HUMAN IMPACTS , EXPORT IMPLICATIONS , AND POLITICAL , ECONOMIC , AND INDUSTRY INFLUENCES ABOUT THIS REPORT Just as an oil slick can spread far from its source, the implications of Oil Sands production have far reaching effects. Many people only read or hear about isolated aspects of these implications. Media stories often provide only a ‘window’ of information on one specific event and detailed reports commonly center around one particular facet. This paper brings together major points from a vast selection of reports, studies and research papers, books, documentaries, articles, and fact sheets relating to the Alberta Oil Sands. It is not inclusive. The objective of this document is to present sufficient information on the primary factors and repercussions involved with Oil Sands production and export so as to provide the reader with an overall picture of the scope and implications of Oil Sands current production and potential future development, without perusing vast volumes of publications. The content presents both basic facts, and those that would supplement a general knowledge base of the Oil Sands and this document can be utilized wholly or in part, to gain or complement a perspective of one or more particular aspect(s) associated with the Oil Sands. The substantial range of Oil Sands- related topics is covered in brevity in the summary. This paper discusses environmental, resource, and health concerns, reclamation, viable alternatives, crude oil pipelines, and carbon capture and storage. It also provides some insight into the political and economic factors that have influenced Oil Sands development and, with some variance, continue to do so; furnishes a sampling of government inadequacies and ignored findings; and includes subjects not often in the forefront, such as the exploitation of Temporary Foreign Workers and the lives of mobile workers. Note: In 1995 the Alberta Tar Sands were framed as a “national treasure” and the term “oil sands” was selected as the new, cleaner sounding brand name. Both names continue to be used interchangeably. [1] ACKNOWLEDGEMENTS The author would like to thank the following people for their contributions to this report: Elizabeth May, leader of the Green Party of Canada and MP for Saanich-Gulf Islands, and Guy Dauncey, President of the BC Sustainable Energy Association, for their review, patience, and invaluable input; Dr. Colin Campbell, Science Advisor, Sierra Club BC, for his insightful feedback and comments; Dr. David Keith, Canada Research Chair in Energy and the Environment and Professor at the University of Calgary, for his review and most helpful suggestions pertaining to the subsection ‘Accounting of Oil Sands production-related GHG emissions’. The information included in this report, often multiple sourced for verification, is dependent on the references utilized, and any conclusions drawn, though based on this information, are the opinion of the author. For questions, contact the author at [email protected] COVER PAGE PHOTOS Background: BOREAL FOREST ALONG THE ATHABASCA RIVER, Photo: David Dodge, Pembina Institute Foreground: ALBERTA OIL SANDS MINING, Source: WWF-UK (top); OIL SANDS PROCESSING BESIDE THE ATHABASCA RIVER . Photo: Garth Lenz (bottom) 1 A COMPREHENSIVE GUIDE TO THE ALBERTA OIL SANDS UNDERSTANDING THE ENVIRONMENTAL AND HUMAN IMPACTS , EXPORT IMPLICATIONS , AND POLITICAL , ECONOMIC , AND INDUSTRY INFLUENCES TABLE OF CONTENTS page Summary 5 Introduction 11 What is Oil Sands oil and how is it mined? 11 The Athabasca River 11 PART 1: Environmental and human impacts, government inadequacies, and viable alternatives Resource usage 12 Natural gas consumption 12 Alternate energy sources 12 Water consumption 12 Water resources - surface water 13 Water resources - groundwater 14 Water resources and climate change 14 Future water demands - ecological concerns and water security 15 Future water demands - industry concerns 15 Greenhouse gas emissions 16 Wheel-to-pump vs wheel-to-well emissions 16 Overview of Oil Sands emissions 17 Upgrading and refining of Oil Sands bitumen 17 Accounting of Oil Sands production-related GHG emissions 18 Biocarbon and the boreal forest 20 Future emissions 21 Emission intensity reductions in the Oil Sands 21 Current Federal and Alberta GHG emission reduction plans 22 Tailings ponds 23 What are tailings ponds? 23 What are mature fine tailings (MFT)? 23 Environmental concerns 23 Tailings ponds leakage 24 How are tailings ponds constructed? 24 Leakage amounts and concerns 24 Air and site pollution 25 Land and wildlife impacts 26 The Land 27 Aquatic Life 27 Land Animals 27 Impacts on First Nations people 28 Health concerns 28 First Nations vs the Oil Sands 29 Treaties and legal actions 30 Environmental and health concerns - lack of government oversight and action 32 Water pollution and conservation 32 Noncompliance 32 2 Environmental and health concerns – lack of government oversight and action (cont’d.) Energy resources 33 Greenhouse gas emissions 34 Canada’s standing on the world stage 34 Environmental assessment and monitoring 35 A history of government inadequacies 35 Recent findings 35 Recent government strategy 36 Reclamation 36 Tailings lakes 36 Peatlands 37 Reclamation costs and liabilities 37 In situ vs mining 39 Forest fragmentation and harm to wildlife 39 Emissions comparisons 39 Resource use comparisons 39 Living and working conditions in the Oil Sands region 40 Mobile Workers 41 Temporary Foreign Workers 42 Exploitation of Temporary Foreign Workers 43 Criticisms of the government’s Temporary Foreign Workers Program 43 Viable alternatives 44 Alternate jobs 44 Alternate energy 44 Canada’s commitment to youth and future generations 45 Part 2: Pipelines, CCS, and politics Pipelines – Existing (major, export) 46 Diluent 46 Crude oil pipelines – major proposed expansions 47 TransCanada Corp.’s Keystone Gulf Expansion Project, Keystone XL 47 Enbridge’s Northern Gateway project proposal 48 Kinder Morgan’s Trans Mountain Pipeline proposed expansion 48 Pipelines and oil tankers – Environmental impacts 49 Environmental impacts specific to pipelines 49 Indirect environmental impacts 49 Pipeline failure statistics 49 Major pipeline failures and ruptures 50 Enbridge pipeline spills’ aftermaths 51 Environmental impacts specific to oil tankers 51 Oil spill statistics 51 Oil spill cleanup 52 Export to the United States 52 6 Carbon Capture and Storage (CCS) and political greenwashing 53 What is CCS? 53 CCS in the Oil Sands 53 CCS and greenhouse gas emissions reduction 54 CCS - Resource implications 54 3 Carbon Capture and Storage (CCS) and political greenwashing (cont’d.) CCS - Cost implications 54 Carbon pricing 55 CCS - Storage implications - capacity 55 CCS - Storage implications - leakage 56 Risks to groundwater 56 Potential dangers of CO 2 leakage 56 CCS - Storage implications – scale 57 CCS - Liability and climate change 57 CCS - Enhanced Oil Recover (EOR) 58 CCS - CCS-related projects 58 Existing commercial-scale scale CCS projects 58 Proposed CCS-related projects in Alberta 59 Political and economic issues 59 Oil Sands investments 59 Oil Sands royalties 59 Fossil fuel subsidies 60 Repercussions of fossil fuel subsidies 61 Benefits of phasing out fossil fuel subsidies 61 Canadian government’s vs global commitments on phasing out fossil fuel subsidies 61 Politics behind subsidies 62 A sampling of political, economic, and industry influences 63 Oil Sands oil 63 Greenhouse gas emissions 64 Lobbying 65 Examples of industry influence inside Canada 65 Examples of industry influence outside Canada 66 A sampling of the historical influence of the United States 66 Foreign Investment - China’s investments in the Oil Sands 67 A sampling of unheeded warnings and recommendations from government reports 67 Historical recommendations 67 Recommendations from Natural Resources Canada 68 Recent studies and recommendations 69 Part 3: Global warming and growing concern Global warming and mitigation 71 Canada’s low carbon performance compared to other industrialized countries 71 Global Warming 72 Climate change and the Oil Sands 72 Lack of action on climate change mitigation is setting the world on a path to surpass 2°C 73 A 4 degree warmer world 73 Adaptation vs mitigation 74 Growing concern about the Oil Sands and climate change 75 Canadians deserve an honest debate about the Oil Sands and climate change 75 Further exploitation of unconventional fossil fuel 76 Closing comments 77 References 79 4 A COMPREHENSIVE GUIDE TO THE ALBERTA OIL SANDS UNDERSTANDING THE ENVIRONMENTAL AND HUMAN IMPACTS , EXPORT IMPLICATIONS , AND POLITICAL , ECONOMIC , AND INDUSTRY INFLUENCES SUMMARY The Alberta Oil Sands is the largest energy project on the planet, lying beneath 140,200 square kilometers of northern Alberta forest, an area almost as large as the state of Florida. This area represents 21% of Alberta and 37% of Alberta’s Boreal Forest Natural Region. As of mid-2009, there were approximately 5,012 oil sands (mineral rights) agreements with the Province and 91 active Oil Sands projects. [2] While only 686 square kilometers of the boreal forest have so far been disturbed by Oil Sands mining, as of mid- 2010, 85,000 square kilometers of land had been leased out to companies

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