Canada could switch to synthetic crude oil and be oil self-sufficient for more than 200 years if its oil sands resources are developed further.

As the world’s largest producer of synthetic crude oil, Syncrude Canada Ltd. already supplies 12 percent of total crude oil production in Canada, or more than 65 million barrels of oil per year.

As Syncrude president Eric Newell notes, “Moving beyond a heavy reliance on foreign energy makes perfect sense for Canada. Unpredictable foreign suppliers and sporadic price fluctuations leave us too vulnerable. And if an energy shortage were to occur, the consequences would be disastrous.”

Newell said it’s time Canadians realized there is a competitive source of alternative energy right in their backyard. At about $15.00 (Cdn.) a barrel, Syncrude’s operating costs are comparable to the finding and production costs of new conventional oil sources.

The Syncrude product is high quality light, sweet crude — among the best low-sulphur oils in Canada. Furthermore, the production potential of the total oil sands deposits in Alberta could be as high as 1.7 trillion barrels.
 

1. Aerial view of Fort McMurray, Alberta. 2. Dragline working in the Syncrude mine [Photos, courtesy, Victor Post Photography]

The key to recovering this huge source, says Syncrude chairman Tom Vant, is more research and development. While some 200 billion barrels of oil are recoverable using present extraction techniques, Syncrude’s owners, a consortium of the Alberta government and several energy companies, are forming research alliances with governments and academia to realize the full potential of the oil sands.

Indeed, since 1973, Canadian production of conventional oil has decreased by an astounding half-million barrels a day. And in the past two years alone, production has fallen a further 85,000 barrels a day.

In September, 1992, Syncrude passed the 600 million barrel production mark of synthetic crude oil. But, says Newell, a continued development of the oil sands will require “significant capital investment from strong, long-term, focused investors, supportive governments and continued innovation in technology.”

There’s no question that oil will continue to be the world’s major source of energy well into the next century. In Canada, Syncrude, with its record of even lower operating costs, and continuous improvements in production, safety, environmental performance and productivity, leaves us well positioned to secure our energy future.

Syncrude Canada Ltd. is the world’s largest producer of high quality light, sweet synthetic crude oil and is Canada’s largest industrial sector employer of native people. The company is a joint venture owned by Alberta Energy Company Ltd., Alberta Oil Sands Equity, Canadian Occidental Petroleum Ltd., Gulf Canada Resources Limited, HBOG-Oil Sands Limited Partnership, Imperial Oil Resources, Mocal Energy Limited, Pan-Canadian Petroleum Limited, and Petro-Canada. The company’s Mildred Lake mining, extraction and upgrading operation is located 40 km north of Fort McMurray, Alberta.