Running head: ALBERTA OIL SANDS

Alberta Oil Sands: Insufficiency of the Integrated Oil Sands Environment Monitoring

Plan

Question #1: How should Canadians respond to the environmental challenges associated with oil

sand mining?Course: GEO 2153

Professor: Abednego Aryee

Student name: Yanan Wang

Student number: 250630628

1

ALBERTA OIL SANDS

Alberta Oil Sands: Insufficiency of the Integrated Oil Sands Environment Monitoring Plan

Alberta’s oil sands extraction is an important contributor to the Canadian economy. The

oil sands have led to great economic prosperity for Canada. Every benefit has an associated cost;

with the great economic prosperity resulting from the oil sands industry comes tremendous social

and environmental cost. These negative externalities are often unaccounted for and can spill over

into our ecological and social environment during any of the four stages of development or

during transportation. In the early years of the oil sands industry, the Alberta government

assumed an active role. It was primarily responsibility for the development of the oil sands and

invested millions of dollars into the industry. Government involvement has gradually decreased

over the past four decades. However, recent challenges in the 21st Century called for a more

assertive role for government monitoring and regulation. After multiple studies disproved

industry claims of having no negative environmental impacts, the Federal Government launched

a new policy—the Integrated Oil Sands Environment Monitoring Program in 2013. The

monitoring program covers water, air, and biodiversity monitoring, and takes an integrated

approach of transparency and accessibility (Environment Canada, 2011, p.xv). However, the

mere monitoring of the oil sands industry—no matter how transparent it claims to be—is, in the

end, only monitoring. The current monitoring program is a failure of the Canadian government to

take into account with all seriousness the devastating impacts of Alberta’s oil sands projects.

Rather than the mere monitoring of an industry that has been proven to be harmful to the

environment, the Canadian government must take drastic measures to regulate and restrict entry

to the oil sands industry in order to preserve the integrity of our natural and social environment.

What is Oil Sands Mining?

2

ALBERTA OIL SANDS

Oil sands are a type of heavy oil fossil fuels that consist of sand, bitumen, mineral-rich

clays, and water (Draper & Reed, 2009, p.452). The extraction of oil sands employs conventional

open-pit mining or in situ nonconventional mining. In conventional mining, where bitumen

deposits are located near the surface (no more than 75 metres below ground), overburden is

removed during the development process and the deposits are extracted using open pit mining

methods. Oil sands development in Alberta currently occupies a very large area of land. The

three main zones of occupation are the Athabasca, Cold Lake, and the Peace River regions,

accounting for at least 30% of the total landmass in Alberta (see Figure 1).

Economic Benefits

Alberta’s oil sands are an important part of the Canadian economy. Canada currently

ranks third in the top holders of proven oil reserves (see Figure 2). Firstly, the oil sands industry

makes a direct contribution to Canada’s GDP. In Canada, 52% of all crude oil is produced by

Alberta’s oil sands (Natural Resources Canada, 2012, p.25). Mining, quarrying, and oil and gas

extraction are currently the third largest industry in Canada, accounting for just over 8% of GDP

as of January 2014 (see Figure 3). Canada’s GDP in 2013 was $1.827 trillion USD. Mining,

quarrying, and oil and gas extraction contributed over $146 billion USD to our economy (The

World Bank, 2014). Since 2002, oil sands production was determined to be growing at an

average rate of 85,228 barrels per day (bpd) from its 2002 production level of 823,418 bpd to

almost 1.6 million bpd in 2010 (see Figure 4). The compounded annual growth rate has been

estimated at 8.6% and, observing the upward linear trend of production (see Figure 4), growth

does not appear to be slowing (Alberta Department of Energy, 2012).

Secondly, the oil sands industry is not only an important industry in Canada, but also

across international borders. The entire world, especially OCED countries, are very dependent

3

ALBERTA OIL SANDS

upon fossil fuels to power daily needs. In addition to the direct economic benefit accrued from

producing and exporting oil sands, Alberta’s oil sands industry also attracts foreign direct

investment (FDI) into Canada. According to Statistics Canada, the stocks of FDI in Canada’s oil

and gas industry rose by 66% to reach $84 billion. Between 2009-2011, FDI in Canada’s oil and

gas sector accounted for 32% of total investment (Statistics Canada, 2011). FDI has been proven

to lead to capital formation, job creation, higher wages, increased tax revenue, and more

advanced technologies (The Conference Board of Canada, 2012).

Environmental & Social Costs

Increasing world interest in securing oil supplies, especially from the United States and

China, has increased the demand for oil sands. Although there is great economic prosperity to be

gained from oil extraction, there are also negative impacts associated with oil sands development

and production. In 2008, the Pembina Institute released its first oil sands “report card” in which it

was revealed that oil sands extraction was “the most environmentally costly source of transport

fuel in the world” (Dyer et al., 2008, p.vii). Direct and indirect negative environmental impacts

can occur during the four stages of mining, as well as during transportation.

In the first stage of mining, access roads must be built during the exploration process,

inevitably disturbing the natural habitat of the ecosystem. Access roads indirectly cause the

fragmentation of forests and ecosystems. During development and extraction, the second stage of

mining, trees and soil are removed before the extraction process can begin. Development also

affects the air quality with emissions of nitrous oxides, sulphur dioxide, and volatile organic

compounds. Nitrous oxides and sulphur dioxide react with water and increases the acidity. The

most problematic environmental impact of the oil sands and mining industry is acid mine

drainage, in which “acidic water drains from mine sites and sometimes enters streams and lakes”

4

ALBERTA OIL SANDS

(Draper & Reed, 2009, p.682). These air emissions have found to be the major contributors to

smog or ground-level ozone and have potential human health effects such as respiratory

problems. In addition, mining requires the use of freshwater and groundwater consumption.

Overuse of local water resources can affect the sustainability of water resources. During the third

stage, the processing of oil sands releases mature fine tailings into the ecosystem. Finally, during

the mine closure and reclamation process, the mining site should be restored to its state prior to

human disturbances. However, restoration rarely takes place. In the past, when environmental

regulation of the oil sands industry was lax, mines failed to reclaim land to a socially acceptable

standard. This resulted due to a lack of data accumulated about the surrounding ecosystem prior

to development or just the failure to reclaim land after mine closure.

Although there has been no research to date that quantifies the total environmental

damage the oil sands industry has done, it is estimated that “more than 280 km2 of boreal forest

and peatlands have already been eliminated to make way for oilsands development” (Leahy,

2014). Prior to 2008, the oil sands industry claimed that development and extraction had no

“significant” adverse effects on the environment. However, in 2008, David Schindler led a team

to conduct the first independent study on the oil sands impact on the environment by observing

the amount of contaminants found in snow within a 50 km radius of mining sites. Schindler’s

research results found that

The loading to the snowpack of airborne particulate was 11,400 T over 4 months

and included 391 kg of polycyclic aromatic compounds (PAC), [there were]

significant increases in PAC concentrations in the Athabasca River and its

tributaries, [and] oil sands development in the previous two years was related to

5

ALBERTA OIL SANDS

elevated dissolved APC concentrations that were likely toxic to fish embryos

(Paksey et al., 2009).

After the publication of Schindler’s revolutionary study, numerous other studies such as the

Environmental and Health Impacts of Canada’s Oil Industry report in a PNAS journal in 2009

and the Pembina Institute’s 2011 Solving the Puzzle: Environmental Responsibility in Oil Sands

Development report followed, all of which confirmed Schindler's results.

The social impacts of oil sands development are closely related to its environmental

impacts. In the Athabasca region, the “keepers of the Athabasca are [the First Nations, Metis,

Inuit, environmental groups, and watershed citizens working together for the protection of the

water, land and air, and thus for all living things today” (Walsh, 2012). Those in the Athabasca

region have been dramatically affected by environmental changes brought on by oil sands

development in the region. The Athabasca river is crucial to the survival of the people: the

community relies on traditional foods such as fishing and for drinking water. However, the

carcinogenic (cancer-causing) compounds released into the river by nearby oil sands

development sites have caused the water to be contaminated with toxic pollutants. This has

resulted in deformed fish (see Figure 5) and spiking cancer rates (Thompson & Radford, 2013).

Evolution of Government Involvement

In the early 1970s, the Alberta government assumed primary responsibility for

subsidizing the oil sands industry. Gradually, as the industry became more prosperous, the

provincial government moved away from direct investments in the industry. Eventually,

nationalistic sentiments in the energy sector decreased as the government recognized the need for

foreign investment for the industry to grow. In a recent Senate document on the topic of energy

management, the author states:

6

ALBERTA OIL SANDS

Unlike many other countries, foreign investment in the energy sector is welcomed.

This openness to the world is crucial given Canada’s relatively small population

base, limited capital markets and the massive capital needed to develop our vast

energy resources. We must never take this for granted (Standing Senate

Committee on Energy, 2012, p.10)

In preparation for its expansion, the Canadian government is actually preparing to loosen the

restrictions on FDI in the oil sands industry, perpetuating further growth and development of the

toxic oil sands industry.

The Integrated Oil Sands Environment Monitoring Program

Following the publication of Dr. David Schindler’s study revealing the dangerous

impacts of the oil sands industry, the Canadian government began to confirm his results and

develop a policy to mitigate the negative attention Schindler’s and subsequent studies had drawn

to the industry. Finally, on February 3, 2012, the federal government announced the launch of

“the most transparent and accountable oil sands monitoring system in the world,” as Canada’s

Environment Minister Peter Kent claimed (Hussain, 2012). The program is to be managed by the

Federal and Alberta governments, covering water, air, and biodiversity monitoring.

The new “policy” is described in Environment Canada’s An Integrated Oil Sands

Environmental Monitoring Plan report. The report describes in detail the components to be

monitored, its methodology and execution, and data management procedures (Environment

Canada, 2012). However, nowhere in this proposed “policy” is there any mention of regulation

or consequences for causing environmental damage. In addition, the Federal and Albertan

government have made no attempt to answer the calls for placing a moratorium on the oil sands

7

ALBERTA OIL SANDS

industry. Nor have any oil sands companies made voluntary commitments to reduce emissions or

monitor the release of toxic tailings into the ecosphere (Draper & Reed, 2009, p.454)

Conclusion

Development in the oil sands industry presents a challenging dilemma for the Canadian

government. The oil sands industry is one of the top contributors to the Canadian economy and

thousands of jobs depend on its continuing prosperity. However, the negative environmental and

social consequences of oil sands development are dramatic and undeniable. Not only is oil sands

mining the most environmentally costly source of fuel extraction in the world, but it has also

been proven to have direct and negative health effects on surrounding human and animal

inhabitants. Opening the oil sands industry to unrestricted foreign direct investment is the

Government’s de facto way of giving consent to the continuing expansion and growth of a toxic

industry. The integrated oil sands environment monitoring plan is not only a failure of the

government to ensure responsible and sustainable development in the oil sands industry, but also

a legitimate execution of its consent for the pollution and destruction caused by the industry. It

must be stressed once more that the oil sands industry involves proven and dramatic negative

environmental and social consequences. Rather than establishing a mere monitoring program, the

Canadian and Albertan governments must take responsible and drastic measures to restrict the

expansion of the oil sands industry to preserve the integrity of our ecological and social

environment.

8

ALBERTA OIL SANDS

Figure 1: Oil Sands Areas

Source: Oil Sands Production Profile. (2012). Alberta Department of Energy. Retrieved

November 16, 2014, from Government of Alberta website:

http://www.energy.alberta.ca/Org/pdfs/InitiativeOSPP.pdf

9

ALBERTA OIL SANDS

Figure 2: Top Holders of Proven Oil Reserves

Source: BP Statistical Review of World Energy June 2012. (2012). British Petroleum, London:

British Petroleum.

10

ALBERTA OIL SANDS

Figure 3: Canadian GDP Segments %

Source: Gross domestic product at basic prices, by industry (monthly) (2014). Statistics Canada.

Retrieved November 16, 2014, from

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gdps04a-eng.htm

11

ALBERTA OIL SANDS

Figure 4: Annual Crude Oil Production from Oil Sands

Source: Oil Sands Production Profile. (2012). Alberta Department of Energy. Retrieved

November 16, 2014, from Government of Alberta website:

http://www.energy.alberta.ca/Org/pdfs/InitiativeOSPP.pdf

12

ALBERTA OIL SANDS

Figure 5: Deformed fish found in Athabasca watershed

Source: Oilsands poisoning fish, say scientists, fishermen. (2010). Sierra Club Canada.

Retrieved on November 17, 2014, from http://www.sierraclub.ca/en/node/2963

13

ALBERTA OIL SANDS

References

An integrated oil sands environment monitoring plan. (2012). Environment Canada. Retrieved

on November 17, 2014, from http://www.ec.gc.ca/pollution/EACB8951-1ED0-4CBB-

A6C9-84EE3467B211/Integrated%20Oil%20Sands_low_e.pdf

BP Statistical Review of World Energy June 2012. (2012). British Petroleum, London: British

Petroleum.

Canada. (2014). The World Bank. Retrieved on November 16, 2014, from

http://data.worldbank.org/country/canada

Draper, D., & Reed, M. (2009). Our Environment: A Canadian Perspective, Fourth Edition.

Dryer, S., Moorhouse, J., Laufenberg, K., & Powell, R. (2008). Under-mining the environment:

The oil sands report card. The Pembina Institute. Retrieved on November 16, 2014, from

http://www.pembina.org/pub/1571/

Foreign and domestic investment in Canada: 2009-2011. (2011). Statistics Canada. Retrieved on

November 16, 2014, from http://www.statcan.gc.ca/pub/61-232-x/61-232-x2011001-

eng.pdf

Fuel for thought: The economic benefits of oil sands investment for Canada’s regions. (2012).

The Conference Board of Canada. Retrieved on November 16, 2014, from

https://albertacanada.com/files/albertacanada/AIS_FuelforThought.pdf

Gross domestic product at basic prices, by industry (monthly). (2014). Statistics Canada.

Retrieved on November 16, 2014, from http://www.statcan.gc.ca/tables-tableaux/sum-

som/l01/cst01/gdps04a-eng.htm

Hussain, Y. (2012, Feb 3). Canada launches new oil sands monitoring policy. The National Post.

Retrieved on November 17, 2014, from

14

ALBERTA OIL SANDS

http://business.financialpost.com/2012/02/03/stung-by-critics-canada-launches-new-oil-

sands-monitoring-policy/

Important facts on Canada’s natural resources. (2011). Natural Resources Canada. Retrieved on

November, 16, 2014, from

http://www.nrcan.gc.ca.proxy1.lib.uwo.ca/sites/www.nrcan.gc.ca/files/files/stat/2012/

important-2012-eng.pdf

Leahy, S. (2014, Jun 26). Experts call for moratorium on new oil sands development until

climate, environmental impact assessed. DeSmog Canada. Retrieved on November 16,

2014, from http://desmog.ca/2014/06/26/experts-call-moratorium-new-oilsands-

development-until-climate-environmental-impacts-assessed

Now or never: Canada must act urgently to seize its place in the new energy world order. 41st

Parliament, 1st Session. (2012). Standing Senate Committee on Energy, the Environment

and Natural Resources. Retrieved on November 16, 2014, from

http://www.parl.gc.ca.proxy1.lib.uwo.ca/Content/SEN/Committee/411/enev/rep/

rep04jul12-e.pdf

Oil Sands Production Profile. (2012). Alberta Department of Energy. Retrieved on November 16,

2014, from Government of Alberta website:

http://www.energy.alberta.ca/Org/pdfs/InitiativeOSPP.pdf

Oilsands poisoning fish, say scientists, fishermen. (2010). Sierra Club Canada. Retrieved on

November 17, 2014, from http://www.sierraclub.ca/en/node/2963

Paskey, J., Steward, G., & Williams, A. (2013). The Alberta oil sands then and now: an

investigation of the economic, environmental and social discourses across four decades.

Mount Royal University. Retrieved on November 17, 2014, from

15

ALBERTA OIL SANDS

https://era.library.ualberta.ca/public/view/item/uuid:b1c0019f-d528-40ff-ac95-

b21d4c2aec2f/DS1/TR-38%20-%20Paskey%20Then%20and%20Now.pdf

Thompson, N., & Radford, T. (2013). Tipping point: Age of the oil sands [video]. Clearwater

Documentary in association with CBC-TV. Retrieved on November 17, 2014, from

http://www.cbc.ca/natureofthings/episodes/tipping-point

Walsh, H. (2012). Keepers of the Athabasca. Canadian Electronic Library. Retrieved on

November 17, 2014, from http://books.scholarsportal.info/viewdoc.html?id=547695

16