An analysis of the cost/benefit profile of the Alberta oil sands

The Alberta oil sands is one of the largest and most controversial energy projects on the planet;

whereby large quantities of bitumen are converted into oil through complex and energy intensive

chemical processes. The tar sands contain approximately 170 billion barrels of oil, and are the third

largest proven reserve of oil in the world. It is expected that this operation will continue to experience

rapid development which may result in a diverse array of negative and positive impacts that could

significantly influence our society. The advantages and disadvantages of the Alberta oil sands can be

analyzed through four key components: political, economic, technological and environmental

toxicological perspectives. The cost/benefit profile of the tar sands is evident, and in order to properly

address this issue, a plausible and realistic solution must be implemented. Therefore, this will hopefully

lead to a decrease in the environmental toxicological and public health impacts associated with the tar

sands while preserving socio-economic growth and technological advancement. The political aspect of the oil sands is mainly regulated through the government of Alberta. These

legislative members continually promote the expansion of this project as well as advertise its

contributions to the economic and technological sector within Canada. The current governmental laws

and regulations have been surpassed by the rapid development of the oil sands which has resulted in a

severe deficit in environmental and public management. Moreover, their one sided perspectives have

disproportionately affected marginalized communities; which has caused an increase in political

upheaval. The government of Alberta did not thoroughly consider how the expansion of this operation

will affect the individuals living in close proximity to the sources of chemical risk. Environmental racism

is abundantly clear, as the Alberta government has insofar banned both Fort McMurray and Fort McKay

from voicing their concerns regarding oil sands development on or near their traditional territories. More

recently, Indigenous communities have strongly asserted that their constitutionally protected rights be

guarded from the impacts of oil sands development. First Nations are increasingly asserting that the

Governments of Canada and Alberta have violated these rights. The lack of government policies and

regulations concerning this issue need to be addressed and replaced by more meticulous, methodical and

stricter rules in order to preserve and promote sustainability. One possibility is to place a moratorium on

the oil sands, thus halting further exploitation and development of unprocessed land in order to better

understand the current consequences of the tar sands and attempt to remedy the damage done to the

marginalized populace. Therefore, the implementation of environmental justice laws is essential in

reducing ostracization and promoting equality within the poor and privileged communities of Alberta.

From an economic perspective, the Alberta oil sands have powered the Canadian economy and

are expected to become the fourth largest oil-producer in the world before 2035. Many other countries

have limited to no availability of this resource, therefore this has greatly increased the opportunities for

industrial advancement in Canada through the exploitation of the oil sands. Capital investment in the oil

sands is expected to produce over $207 billion by the year 2022; where every dollar invested creates

approximately $8.00 worth of economic activity around the globe. Therefore, this operation is not only

an economic benefit for Canada, but its contributions extend to a variety of countries. Moreover, oil sands

currently affect the jobs of 112,000 people across Canada which is expected to grow to over 500,000 jobs

in the next 25 years. First nation’s communities have also experienced economic prosperity from the oil

sands. In northeast Alberta alone, there are over 2000 Aboriginals with permanent oil sands operations

jobs. Furthermore, in 2010, oil sands companies contracted more than $1.3 billion for goods and services

from Aboriginal-owned businesses. Hence, it is evident of the economic benefits from this operation;

the real challenge lies in preserving this socio-economic growth while reducing the political strife and

health issues associated with oil sands development. This may be achieved through oil sands research;

whereby the Alberta/Federal government uses this economic prosperity to invest in sustainable energy

alternatives in order to responsibly extract bitumen. Therefore, this would reduce the ecological footprint

of this operation without decreasing its positive impacts on the Canadian economy. The environmental toxicological aspects of the oil sands are an urgent and growing issue; which has led to an increase in public health and ecosystem deterioration within northeast Alberta. Water pollution is becoming increasingly abundant, as roughly 3 million barrels of toxic runoff occur each day which has resulted in fifty square miles being covered in toxic pools. A recent study from the University of Alberta discovered that there were high levels of the metals lead, arsenic and mercury downstream from the oil site. This could have contributed to public and ecosystem health deterioration in the neighbouring regions. The emergence of polycyclic aromatic compounds (PAC) due to the mining and processing of the oil sands has caused a variety of toxicological effects on nearby ecosystems. In 2008, within 50 km of oil sands upgrading facilities, the loading to the snowpack of airborne particulates was
11,400 T over 4 months and included 391 kg of PAC’s (equivalent to 600 T of bitumen), while 168 kg of dissolved PAC was also deposited, and in the Athabasca region, oil sands development was related to elevated dissolved PAC concentrations that were likely toxic to fish embryos. In addition, Fort
Chipewyan, a community (including Mikisew Cree and Athabasca Chipewyan First Nations) located 250 kilometers downstream from tar sands development, have raised concerns about its impacts on their health as well as the ecosystems they rely on for a variety of resources. A 2009 study by the Alberta
Cancer Board confirmed that the people of Fort Chipewyan are experiencing higher than normal rates of cancer and deformed fish, declining numbers of waterfowl and foul water have added to residents' concern. In addition to greenhouse gases, the oil sands also release a large degree of air pollutants such as nitrogen oxide and sulphur dioxide which contributes to acid rain formation. This may pose as a major issue as the oil sands continue to rapidly expand, thus increasing the environmental toxicological effects such as air and water pollution. Therefore, in order to remediate these negative impacts, the Alberta government should implement conservation strategies such as establishing protected areas, land reclamation (especially for Indigenous populations), creating biodiversity policies and setting defined boundaries to limit overexpansion. From a technological perspective, the Alberta oil sands provides the opportunity for advancement in sustainable energy alternatives. It is expected that over the next five years, more money ($ 6.1 billion) will be invested in climate friendly technology in Alberta than all of the Canadian provinces combined.
The government of Alberta has allocated $ 440 million for the next three years in order to pursue renewable energy, these include wind power and geothermal energy to replace the reliance on natural gas. Although carbon capture technology (CCS) has been identified as a reasonable alternative to reduce greenhouse gas emissions, the limited commercial availability and high costs of CCS lowers its overall benefits to the economy because of its relatively slow exploitation. Hence, the concept called virtual CCS
(which incorporates nuclear, geothermal and wind energy) could be a more useful alternative, because of its overall higher calculated cost efficiency in comparison to that of CCS. Therefore, it is evident that legislative bodies have become aware of the increased eco-health issues associated with the oil sands and are attempting to relinquish these effects by experimenting and adopting different technological strategies
(such as virtual CCS). Furthermore, this technological advancement due to the expansion and development of tars sands production may contribute to the awareness and exploitation of global sustainable energy alternatives because of its increasing demand over non-renewables. The sustainable technologies created within Canada to counteract the hazardous effects of the oil sands can therefore be exported to other parts of the world; thereby resulting in a reduced global ecological footprint. In conclusion, the Alberta oil sands are viewed through a variety of different perspectives which has led to a diverse array of conflicts as to how society can preserve the economic and technological prospects associated with the tar sands without causing further damage to public and ecosystem health. A plausible and realistic solution may be achieved by harmonizing human needs/aspirations and ecological constraints. Incorporating the growing issues of ecological and environmental justice into the solutions process may be the first necessary step towards a sustainable future. Therefore, in order to remediate the negative effects of Alberta’s Oil Sands, the scientific community, legislative bodies and the general public need to become more environmentally conscious and efficient in an attempt to reduce the damage caused by oil sands production. This may require the transition from an anthropocentric paradigm to an eco-centric paradigm; which would focus on maintaining ecosystem health and integrity as well as developing and implementing sustainability solutions.