Pace of oil sands development raises environmental concerns

Pace of oil sands development raises environmental concerns

Washington (Platts)--29Jun2006

The projected pace of oil sands development in Alberta, Canada, can't be
sustained without significant environmental and socioeconomic impacts, and
must be slowed, Canadian environmental and community activists said Thursday.

"We're not adverse to development or oil sands being mined," George
Poitras, former chief of the Mikisew Cree Nation, told a press conference at
the National Press Club.

The oil sands area spans about 102,610 square kilometer within Mikisew
Cree's traditional land use territories, and the nation is expressing concerns
about air and water pollution, depletion of water resources, and the impact of
accelerated development on culture and traditional land uses.

"There is evidence to suggest that the data and analysis used by oil sand
operators to predict impacts are incomplete, unclear and based on questionable
assumptions," according to the Mikisew Cree First Nation Industry Relations
Corporation.

Expectations of oil production from Alberta oil sands have increased
with rising oil prices and growing demand, particularly in the US. The
Alberta Chamber of Resources' National Oil Sands Task Force in 1995 projected
that production would reach 800,000 to 1.2 million b/d by 2020. In fact,
between 1996 and 2004 production more than doubled to about 1.1 million b/d.

The Canadian Association of Petroleum Producers now projects production
could reach 2.7 million b/d by 2015 and the Alberta Chamber of Resources
projects that production could reach 5 million b/d by 2030.

Oil sands are produced by surface mining or thermal in situ (in place)
projects. The number of major mining, upgrading and in situ projects has grown
to include 46 existing and proposed projects, according to Canada's National
Energy Board.

Marlo Reynolds, executive director of the Pembina Institute, which
promotes sustainable energy solutions, told the press conference that the pace
of development needs to be slowed "if that what's required to protect the
environment. We're not saying stop [development]. We're saying slow this down
until we understand [the impacts]."

Richard Schneider, conversation director with the Edmonton chapter of the
Canadian Parks and Wilderness Association, said, "What's missing is a sense of
planning" and an understanding of the cumulative impacts of the development
projects. He said the current and proposed development projects reflect a
"gold rush" mentality.

In light of the rapid growth in oil sand production, "the question arises
as to whether the balance between resource development and environmental
protection and social interests can be maintained," the NEB said in a report
released earlier this month.

--Gerald Karey, gerry_karey@platts.com

For more news, request a free trial to Platts Oilgram News at
http://oilgramnews.platts.com or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=1_29&products_id=29

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.