The oil sands enters an era of opportunity and uncertainty

Advocates and opponents of Alberta's resource jewel are watching the sector closely
By Darren Campbell






September 1, 2011






Alberta’s oil sands have never been more popular – or more controversial. In a world run by hydrocarbons, the province’s 170 billion barrels of oil sands reserves is one of the most tantalizing sources of fuel on Earth. Oil companies big and small are jockeying for position to extract it, energy-hungry nations are looking to import it, and the resource owners – Albertans – are looking to maximize the return they can get from it.

But such an important resource tends to grab the attention of more than just those that want to exploit it, and the substantial environmental and social impacts that comes with oil sands development has resulted in a heightened degree of public scrutiny on the sector. Long gone are the days when the oil sands could operate in obscurity. It’s now a world-class resource, but also an industry in flux, searching for ways to navigate safely through a new era.

The content of our annual oil sands issue reflects this reality. In this issue you will find stories examining how industry, government and the public are coming to grips with the changing nature of the oil sands. In my cover story on Syncrude Canada Ltd. president and CEO Scott Sullivan, I take a look at how this ExxonMobil lifer is bringing the refined petroleum acumen of the biggest of the Big Oil companies to an oil sands pioneer. (We’ve also got an exclusive video providing readers with an inside look at Syncrude’s innovative research center.)

Associate editor Jeff Lewis tackles the thorny issue of two differing visions for value-added oil sands production in Alberta. Alberta Oil assistant editor Steve Macleod writes about the push by a handful of firms to use electrical currents rather than natural gas to create steam and unlock bitumen from its rocky underground prison – an innovation that could lessen the sector’s greenhouse gas emissions if it proves to be viable.

Also included in our September package is Bill Rankin’s piece detailing how the controversies erupting over planned pipeline expansions to ship oil sands production to new markets is presenting the petroleum industry with a new level of risk – one that could stymie its ambitious growth plans for the oil sands. And finally, Carol Christian takes us to Fort McMurray to see how the community’s infrastructure is holding up – and what governments and industry are doing to help it address the shortage – as Fort Mac enters what looks like another boom period.