MartiniPundit

Random thoughts and insights – always shaken, never stirred

Alberta, the New Saudi Arabia

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We really should have made them a state while we had the chance. Alberta is gearing up to produce an enormous amount of oil:

The National Energy Board estimates there are approximately 1.6 trillion barrels of crude bitumen saturating the ground in northern Alberta. Bitumen — a form of heavy, thick oil laden with sulphur and deficient in hydrogen — can be refined into synthetic crude oil to make everything from gasoline to plastics. It is the lifeblood of every industrialized economy. According to the Alberta Energy and Utilities Board, about 178 billion barrels of bitumen are economically recoverable using existing technology — enough to produce more than 150 billion barrels of crude.

If these estimates are accurate, Canada’s oil reserves rank second behind only Saudi Arabia’s 260 billion barrels. And there are many who believe the current oil sands assessments understate the true potential here. The AEUB has projected that rising prices and improved technology could ultimately push the oil sands yield close to 300 billion barrels, which would make it the richest petroleum field in the world. By 2015, the oil sands are expected to be producing roughly three million barrels of petroleum a day.

That will make Alberta a force to be reckoned with in Canada, and possibly out. Why should Albertans send all that money to Ottawa?

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Written by martinipundit

August 29, 2005 at 10:40 am

Posted in General

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