What Are The Canadian Oil Sands?
The Canadian oil sands are more properly the Athabasca Oil Sands. This is a deposit of oil rich bitumen in the northern portion of Alberta Canada. The oil sands contain bitumen, which is a very thick, heavy crude oil. It is a semi solid form of crude oil. The mixture here also contains clay minerals, silica sand and water, mixed together to form one of the largest pockets of usable crude oil in the world. For this reason, it is heavily desired.
There are three large deposits in the Alberta region, of which the Athabasca oil sands are the largest. Located in the same region you will find two other large deposits called the Peace River deposit and the Cold Lake deposit. The three combined provide some 54,000 square miles of forest with a unique opportunity. Because this type of oil is so highly valued, it has become a interesting location, with people from around the world interested in making the most of it.
The Canadian oil sands are located in an area that is sparsely populated, but is heavily forested. There are peat bogs and boreal forest areas throughout the region. One of the key factors for those considering mining this oil is the environmental impact it will have on the region. For this reason, the Canadian government has taken a close look at the area and any investments are under careful consideration.
Perhaps the most interesting of all aspects about the Canadian oil sands is the sheer amount of crude oil located here. It is an estimate that there are about 1.7 trillion barrels of bitumen located here. This is such a large supply that it is only second in the world to Saudi Arabia. Of the amount of crude oil located here, an estimate can be in use. Based on costs and on technology available, people could effectively mine that limited amount.
The Canadian oil sands are a highly valuable piece of property and because of their location, unique layout and of course the valuable bitumen that is located underground, there is no doubt that it will become a major investment area for people from around the world. To the people of Canada and the United States, it could become one of the best ways for these countries to stop being dependent on the rich oil deposits in the war torn regions of the world such as the Middle East. Still, there is much more to be a consideration before these fields can be safely mined and can provide the oil that is so in demand.
Suncor Energy: The Original In Canadian Oil Sands Production
Suncor Energy Incorporated is the original producer of the oil sands found in Alberta, Canada. This company was the first to mine the oil sands and produce the first barrel of crude oil. The company operates in the well-known Athabasca oil sands located in northern portions of the Alberta province. The company was first founded in 1967 and is still a major frontrunner in the production of oil products.
Suncor Energy is the second largest producers of oil sands crude oil, following just behind Syncrude Canada Ltd. Suncor Energy uses both methods of mining available for the oil sands, surface mining (much like a traditional mining operation) and in-situ methods, which are for deep extraction of oil sands product. Suncor Energy is actually the only company in the Canadian oil sands that does both types of mining currently.
This company also is a fully integrated company, which many of the oil sands producers are not. Suncor Energy works to remove the oil sands crude and then upgrades the product (removing the bitumen from the sands and other products) which transforms it into the conventional crude product mined in other areas of the world. To do this, the oil sands product extracted from the ground ships to the company’s upstream facilities. There, the upgraded product goes to the company’s refineries. Those refineries are located in Sarnia, Ontario, Canada as well as in Commerce City, Colorado. At those facilities, the crude is refined into the consumer products needed including petroleum products of all types including transportation fuel.
In addition to its Canadian oil sands production, Suncor also has a large natural gas operation in establishment located in Alberta as well as in British Columbia, Canada. This production of these natural gases is in use, in part, to help fuel the costs of operation at the Canadian oil sands locations. The oil sand production process requires extensive energy use, which is often one of the most complex processes for the producers because of the costs.
Suncor Energy was ranked at 254 of the Forbes Global 2000 list for is large corporation. The company is run by John T. Ferguson who serves are Chairman of the Board and Richard L. George who is CEO of the organization. In revenue, the company has in excess of CA $16 billion, which is a figure from 2006.
The company also runs a marketing of products from its organization and various service industries throughout the Ontario offices. Some 280 Sunoco branded retail outlets are available throughout the world, which provides gas, and diesel fuels. The expansiveness of this organization has made it highly attractive to investors. Because of its total size and integration, its costs are lower than other companies without such organization structures.