Canada's Oil Sands - Centre for Energy

Offsets are another option to reduce global greenhouse gas emissions. Offsets are
reductions in emissions that are caused by an activity not directly related to the source
creating the emissions. Planting millions of trees to absorb carbon dioxide creates an offset
for whoever plants the trees. In an emissions-trading system, carbon dioxide offsets can be
traded on an emissions market.
From a global perspective, what matters is the total amount of greenhouse gases emitted
during a product’s “wells to wheels life cycle” from extraction to the final use by a
consumer. According to two independent studies commissioned by the Alberta Energy
Research Institute released in 2009, greenhouse gas emissions from the oil sands are
about 10 per cent higher than direct emissions from other crudes in the United States.
However, if cogeneration is taken into consideration, greenhouse gas emissions from oil
sands are similar to those from the other crudes.
The studies, Life Cycle Assessment Comparison of North American and Imported Crude,
researched and authored by Jacobs Consultancy Canada Inc. and Comparison of North
American and Imported Crude Oil Lifecycle GHG Emissions, researched and authored by TIAX
LLC, were conducted in 2008.
The studies also indicated that greenhouse gas emissions from conventional crudes are
rising because of the increasing reliance upon heavier crudes that are more difficult to
produce. Conversely, greenhouse gas emissions from oil sands crudes are decreasing
because of technological advances.
Quality of life
Tens of thousands of new jobs come from oil sands development. Workers and their
families have flocked to the oil sands region and elsewhere in the province. While this
growth has been a boon for these individuals, it puts great pressure on public services,
housing and infrastructure. Many businesses had trouble finding and keeping staff. During
consultations in 2006, some Albertans, including the mayor of Fort McMurray, urged a
slowdown in oil sands development so that other sectors could keep pace. In 2008 and
2009, the pace of development did slow due to economic conditions that caused the delay
or outright cancellation of some projects. Capital spending in 2009 dropped 38 per cent
from $18.1 billion to $11.2 billion. However, in 2010, capital spending increased 53 per cent
to $17.2 billion, the third highest on record.
Photo courtesy of
Shell Canada Ltd.
Oil sands projects have
created new opportunities
for local businesses, including
many enterprises owned and
operated by Aboriginal people.
However, oil sands projects also created new opportunities for local businesses, including
many enterprises owned and operated by Aboriginal people. Splitting contracts into many
components makes it possible for smaller companies to bid on them. Oil sands developers
use open house events, local media and ongoing consultation to ensure that local people
are aware of upcoming business opportunities. The Northeast Alberta Aboriginal Business
Association distributes contract information among its members, and the Regional
Economic Development Link or “Red Link” facilitates opportunities through information,
communications, promotions, research, networking, and sales.
Providing employment and business opportunities is, however, just one of the ways that
the industry is transforming the social fabric and economic well-being of the oil sands
areas. Aboriginal people make up about 10 per cent of the population in the Athabasca
28 CANADA’S OIL SANDS THIRD edition November 2011