Alberta oil sands have environmental footprint, but greater risk in importing oil: RIMS panelist

The Alberta oil sands operations have an environmental footprint, but the alternative of getting oil from other countries carries greater environmental and political risks, David Percy, the chair in energy law practice at the University of Alberta’s Law School, told delegates of the 2010 RIMS Canada Conference in Edmonton.
During his seminar, ‘Thinking About the Oil Sands: Economic Boon or Environmental Disaster?’ Percy suggested technological advances in the production of bitumen (the heaviest, thickest form of petroleum) in Alberta’s oil sands would reduce the environmental impact of the fuel processing. But the government needs to get more aggressive to provide incentives for those types of advances, he added.
When comparing the environmental impact on a ‘well-to-wheels’ basis, he noted the actual production of upgraded bitumen in Alberta’s oil sands is slightly worse than Nigerian crude operations.
“But we have to remember that crude oil from the Middle East or Africa is transported by sea,” he said. “And that creates a vast amount of green house gas emissions from the tankers.”
Also, Saudi Arabian crude is getting heavier, forcing deeper drilling. And countries like Venezuela, Mexico or Nigeria have politically charged environments and weak environmental policy track records.
The Alberta oil sands industry is in its infancy, Percy said. There were only two operating projects in 2002, although there are many more players today.
“I think many players will produce a variety of technical advances very quickly – i.e. there will be competition to spur those advances,” he said.
“But I also think the province has to get much more active and provide incentives for the right kind of advances.”
The oil sands have recently been the target of an international, aggressive marketing campaign aimed at comparing the risk in Alberta to that of the BP oil spill.
In response, “a mantra of ‘oil sands are really not as bad as you think’ is basically what we have at the moment, and it’s not very effective [at swaying public opinion],” Percy said. “Green oil sands stand alongside clean coal and error-free deepwater drilling in the public’s mind at the moment.
“What we need is to do better in the oil sands than in light crude [production]. If we are to sell it to the public, we have to show why it is better and has less of an environmental impact. We have to have policy to get us there.”