Tar Sands in Canada: High Carbon & Low Benefits

In 2019, the tar sands industry was named the “world’s most destructive oil operation” for its impact on Canada’s environment, by National Geographic.¹ Tar sands are described in extreme terms because the industry has a high carbon cost while offering low benefits for Canada.

Athabasca tar sands

Tar sands in Canada are mainly spread out over three regions in the provinces of Alberta and Saskatchewan. Specifically, these are the Athabasca River basin, Cold Lake and Peace River. Together, the industry covers a combined area of approximately 142,000 square kilometres² in the middle of Canada’s thick boreal forest, which is regarded as a key ecological treasure.³

Interestingly, compared to conventional oil, tar sands oil is expensive to extract and produce. Companies have to pump steam deep into the ground – up to one kilometre deep – to heat up the tar sands. Then, they are pumped to the surface. Tar sands are a mixture of sand, clay, water and bitumen. The bitumen then has to be extracted and later refined so it can be used as a product.⁴ ‌This makes tar sands oil so expensive that producers can only make a profit if prices are at least over USD $45 per barrel.⁵

The impact on the environment is worse. For every gallon of oil extracted from tar sands, nearly six gallons of freshwater is required – three times the amount required for conventional oil.⁶ The high requirement for freshwater takes a toll on the wildlife and trees that depend on the Athabasca River for sustenance.⁷

‌Tar sands in Alberta

The provincial government of Alberta says that the industry, directly and indirectly, employs nearly 150,000 people. In fact, following Venezuela and Saudia Arabia, Alberta’s tar sands oil reserves are also estimated to be the third-largest in the world.⁸

But tar sands oil extraction also creates a toxic sludge called ‘tailings’ by the industry. In fact, tailings need to be stored in enormous ponds for years. Tailings ponds have now accumulated nearly 1.3 trillion litres of sludge. This creates a growing environmental headache for the industry and the government.⁹

‌Instead of trying to rescue and sustain the tar sands industry, Alberta and Canada’s governments could invest in clean energy. In fact, Canada’s clean energy sector already employs more people than the tar sands industry.¹⁰ In 2017, the renewable energy industry employed nearly 300,000 people in Canada.¹¹ 

1. Leahy, S. (2019). Alberta, Canada’s oil sands is the world’s most destructive oil operation—and it’s growing. [online] Environment. Available at: https://www.nationalgeographic.com/environment/article/alberta-canadas-tar-sands-is-growing-but-indigenous-people-fight-back.
2. CAPP. (2019). What Are the Oil Sands | Canada’s Oil Sands Facts & Information. [online] Available at: https://www.capp.ca/oil/what-are-the-oil-sands/.
3. World Resources Institute. (2018). Tar Sands Threaten World’s Largest Boreal Forest. [online] Available at: https://www.wri.org/blog/2014/07/tar-sands-threaten-world-s-largest-boreal-forest.
4. Union of Concerned Scientists. (2013). What Are Tar Sands? [online] Available at: https://www.ucsusa.org/resources/what-are-tar-sands.
5. www.businesswire.com. (2019). Costs of Canadian Oil Sands Projects Fell Dramatically in Recent Years; But Pipeline Constraints and other Factors Will Moderate Future Production Growth, IHS Markit Analysis Says. [online] Available at: https://www.businesswire.com/news/home/20190501005040/en/Costs-of-Canadian-Oil-Sands-Projects-Fell-Dramatically-in-Recent-Years-But-Pipeline-Constraints-and-other-Factors-Will-Moderate-Future-Production-Growth-IHS-Markit-Analysis-Says.
6. Union of Concerned Scientists. (2013). What Are Tar Sands? [online] Available at: https://www.ucsusa.org/resources/what-are-tar-sands.
7. Leahy, S. (2019). Alberta, Canada’s oil sands is the world’s most destructive oil operation—and it’s growing. [online] Environment. Available at: https://www.nationalgeographic.com/environment/article/alberta-canadas-tar-sands-is-growing-but-indigenous-people-fight-back.
8. Yale E360. (n.d.). As Oil Industry Swoons, Tar Sands Workers Look to Renewables for Jobs. [online] Available at: https://e360.yale.edu/features/as-oil-industry-swoons-tar-sands-workers-look-to-renewables-for-jobs.
9. Oil Sands. (2021). Oil Sands Tailings Ponds in Canada. [online] Available at: https://oilsand.org/canada-oil-sands-tailings-ponds/ [Accessed 19 Mar. 2021].
10. Green energy sector jobs surpass total oil sands employment. (n.d.). The Globe and Mail. [online] Available at: https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/green-energy-sector-jobs-surpass-oil-sand-employment-total/article21859169/ [Accessed 24 Jan. 2021].
11. New research claims green energy creates more jobs than the traditional kind: Don Pittis | CBC News. (n.d.). CBC. [online] Available at: https://www.cbc.ca/news/business/green-energy-economy-1.5143757.