Oil Sands 101

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OIL SANDS 101How bitumen is extracted from the oil sands and

converted into refined products

OIL SANDS MAGAZINE • January 20, 2016

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What is oil sands?Oil sands are a loose sand deposit which contain avery viscous form of petroleum known as bitumen.

Deposits average 10% bitumen, 5% water and85% solids (silica sand & fine clays).

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What isbitumen?

Bitumen is a naturallyoccurring, highly viscoushydrocarbon contained

within the oil sandsdeposit. Bitumen normally

contains high levels ofsulphur and nitrogen.

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Where are the oilsands located?

◦ The Athabasca Basin◦ The Peace River Basin◦ The Cold Lake Basin

Canada’s oil sands areconcentrated in Alberta,

Oil sands basins areclassified as follows:

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How were the oil sands formed?Algae and other marine life decomposed into light oil.

Microbe bacteria contained in trapped oxygenated waterfed off the lighter hydrocarbon molecules

(biodegradation), leaving behind a heavier complexhydrocarbon with sulphur and trace metals (oil sands).

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What is the sizeof Canada's oil

sands reserves?

Canada has an estimated1.75 trillion barrels of

petroleum reserves, 97%contained in Alberta's oilsands. Total proven oil

sands reserves areestimated at 170 billion

barrels.

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How is bitumen extracted?Oil sands located near the surface are mined and sent

to a processing plant for removal of solids/water.Bitumen contained in deep deposits (>200 m

depth) is extracted in-situ (or in-place) using steam.

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What happens to the bitumen?About half is upgraded into light synthetic crude oil.The remainder is diluted and sold directly to high-

conversion refineries which have the capacityto process heavy sour feedstock.

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What is a heavy oil upgrader?Upgraders transform heavy bitumen into light crude

oil by fractionation and chemical treatment. Upgradingimproves the quality of the crude oil, reducing its

viscosity and sulphur content.

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How much crudeoil does the oilsands produce?

Alberta's oil sandsproduced an average of2.36 million bbl/day in2015. About 40% was

upgraded to light oil, theremainder sold as heavy

diluted bitumen.

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How much greenhouse gases areemitted by the oil sands?

In 2011, 55 metric tonnes per year. That works outto 0.7% of North America's emissions and 0.15% of

global GHG emissions.

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Where are the GHGs emitted?

7-10% emitted during bitumen extraction12-15% emitted during upgrading & refining1-2% emitted during transportation75-80% emitted during combustion.

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How much river water isallocated to the oil sands?

3% of the Athabasca River is allocated to existing &future oil sands mining operations. Only 0.7% iscurrently used. In-situ facilities use ground water.

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How much of theoil sands can besurface mined?

Only 3% of Canada's oilsands is mineable. Theremainder can only be

recovered in-situ.Alberta's active miningfootprint is about the

size of Edmonton.

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For more information, pleasevisit our website:

www.OilSandsMagazine.com

Science

Oil Sands 101