CHARBONNEAU: When nature gives you tar sands, make carbon fibres
OIL SANDS CRUDE PRICES have hit rock bottom. The future could be in the tar – the bitumen. The original name for the deposits, tar sands, should be restored because that’s where their potential value exists.
Extracting oil from tar sands is done at great cost. Huge tracts of land are stripped and the tar sands are dug up or injecting with steam. Once it’s dug up, the thick goo has to be diluted just to get it through pipelines. To turn into useable petroleum, it has to be sent to refineries thousands of kilometres away. Because there aren’t enough pipelines to get it to refineries, and because conventional oil is relatively cheap, the extraction of oil from tar sands is not profitable.
Beyond the cost of extracting oil from tar sands, there is the cost to the environment. Because extraction is so energy intensive, more greenhouse gases are produced than from conventional sources. Canada is the fifth largest producer of crude oil in the world but we produce 70 per cent more greenhouse gases per barrel than global averages, according to Corporate Knight magazine (Fall, 2018). That higher average is because of the tar sands.
Then there are investment pressures that are moving away from fossil fuels. Europe’s largest asset manager is increasing its “decarbonized portfolios” and so is Canada’s second largest pension fund, Caisse of Québec.