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Athabasca Oil Sands

The nasty side of mining bitumen on an industrial scale

Screen Shot 2012-05-23 at 17.10.56I doubt that Royal Dutch Shell will be happy with this information about the nasty side of mining bitumen on an industrial scale with minimal environmental pollution control.

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John, 

Here are a collection of articles your readers might be interested in.

I doubt that Royal Dutch Shell will be happy with this information about the nasty side of mining bitumen on an industrial scale with minimal environmental pollution control.

The Tyee – A Smoking Gun on Athabasca River: Deformed Fish: Sep 17, 2010 – All had been pulled from fishing nets on Lake Athabasca and the delta … mining waste sediment suffered from deformities, bleeding and skin … read more

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Oil Sands Industry in Canada Tied to Higher Carcinogen Level

The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed. “Now we have the smoking gun,” Professor Smol said. The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Todd Korol/Reuters: An oil sands mine Fort McMurray, Alberta.

By : A version of this article appeared in print on January 8, 2013, on page A4 of the New York edition

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure. read more

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Panel says it doesn’t have authority to rule on challenge to Jackpine Mine expansion

Constitutional challenge to Shell oilsands development raised by First Nation, Metis groups

By Marty Klinkenberg, Edmonton Journal October 26, 2012

The Joint Review Panel reviewing Shell’s proposed Jackpine Mine expansion project north of Fort McMurray on Friday ruled that it does not have jurisdiction to consider a constitutional challenge raised by the Athabasca Chipewyan First Nation and a regional band of the Métis Nation of Alberta.

Photograph by: Andrey Rudakov/Bloomberg , Andrey Rudakov/Bloomberg read more

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Alberta First Nation wants to stop Shell Canada’s Jackpine mine expansion

By Marty Klinkenberg, Edmonton Journal October 22, 2012

EDMONTON – Backed by human rights organizations and conservation groups, the Athabasca Chipewyan First Nation will argue in Fort McMurray on Tuesday that it should be allowed to issue a legal challenge against Shell Canada’s proposed expansion of its Jackpine mine in northeastern Alberta.

In an appearance before the Energy Resources Conservation Board and Joint Environmental Review Panel, the First Nation will argue that the government has failed to meaningfully address the impact the development could have on the band’s traditional territory and is therefore in violation of its treaty rights. read more

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Federal scientists still wary of Shell’s Jackpine oilsands expansion

Documents reveal concerns ahead of fall public hearings into northern Alberta mine expansion

The Canadian Press: Posted: Aug 27, 2012 12:18 PM ET

A demonstration tailings pond in Shell’s Muskeg River oilsands mine in northern Alberta. The company’s ability to store the byproducts of oilsands extraction in a manner that doesn’t harm the environment is one of the concerns raised by federal scientists worried about Shell’s plans to expand another of its mines, the Jackpine facility north of Fort McMurray, Alta., . (Handout/Reuters)

Regulatory documents indicate federal scientists still have significant concerns over Shell’s proposed Jackpine oilsands mine expansion north of Fort McMurray, Alta., even as the project heads into public hearings. read more

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Federal scientists still concerned over Shell’s Jackpine oilsands expansion

 By Bob Weber, The Canadian Press  | August 26, 2012

EDMONTON – Regulatory documents indicate federal scientists still have significant concerns over Shell’s proposed Jackpine oilsands mine expansion even as the project heads into public hearings.

Five years after Shell Canada first proposed the 100,000-barrel-a-day project, it has been finally scheduled to go before a joint federal-provincial environmental hearing Oct. 29.

In their final submissions to the Canadian Environmental Assessment Agency, several federal departments say they still have questions about Shell’s plans. They include how growth in the industry has outpaced the company’s assessment of cumulative effects, how changing flow in the Athabasca River will affect contaminant levels and how well Shell is able to control effluent from artificial lakes that will be used to store tailings. read more

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Shell achieves production milestone at oil sands operations

By Shell Canada Limited Published: Monday, Aug. 20, 2012 – 10:06 am

CALGARY, Aug. 20, 2012 — /CNW/ – Shell, as operator of the Athabasca Oil Sands Project (AOSP), today announced that its oil sands operations have achieved the production milestone of 500 million barrels since production began in 2003.

“This is a tremendous achievement for Shell’s oils sands business,” said John Abbott, Executive Vice President, Heavy Oil. “This milestone is the result of the hard work and dedication of many thousands of employees and contractors. The oil sands are a secure, reliable source of energy for North America and an economic engine which drives employment, training and business development across Canada and beyond.” read more

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Edmonton Sun: Shell bulks up!

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

Edmonton Sun (Canada): Shell bulks up!

Shell Canada Ltd now expects the next phase of expansion at its Athabasca oilsands project in northern Alberta to cost about $7.3 billion. That is nearly twice the estimated price released last fall.”

Wednesday 10 August 2005

By CP

CALGARY — Shell Canada Ltd. now expects the next phase of expansion at its Athabasca oilsands project in northern Alberta to cost about $7.3 billion.

That is nearly twice the estimated price released last fall.

Shell said yesterday its first major expansion at the Athabasca project, still targeting a 100,000-barrel-daily production boost, would now include “over-building” of common infrastructure to make further expansions cheaper and easier.

“The scope and scale of the expansion has been modified to include pre-building of infrastructure and utilities to support our longer-term goal of 500,000 barrels per day,” Shell spokesman Janet Annesley said. read more

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Shell Gets Conditional Alberta Approval for Carbon-Capture Plan

By Edward Klump – Jul 11, 2012 8:52 PM GMT+0100

Royal Dutch Shell Plc (RDSA), Europe’s biggest oil company, received conditional approval from Alberta’s energy regulator for a carbon capture and storage project planned north of Edmonton.

A panel concluded it’s in the public interest for Shell’s Quest project to move ahead, Alberta’s Energy Resources Conservation Board said in a statement posted on its website and dated yesterday. The site is suited to long-term carbon-dioxide storage, and the proposal mitigates potential risks, the board said. read more

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Economic benefits will likely win Keystone XL approval: Shell

Oct 24, 2011 – 5:41 PM ET

TORONTO — The U.S. government is likely to approve the Keystone XL pipeline in part because of the economic benefits that would come along with the controversial US$7-billion project, the head of Royal Dutch Shell’s North American operations, predicted Monday.

In fact, the economic benefits attendant on the energy industries in North America in general are even more important than energy independence, Marvin Odum, president of Shell Oil Co. and upstream director of Royal Dutch Shell’s subsidiary company in the Americas, said at a Toronto conference. read more

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Mining the Canadian tar sands

From pages 19 & 20 of “Royal Dutch Shell and its sustainability troubles” – Background report to the Erratum of Shell’s Annual Report 2010

The report is made on behalf of Milieudefensie (Friends of the Earth Netherlands)
Author: Albert ten Kate: May 2011.

Shell’s largest unconventional oil resource

Due to “easy” oil getting scarce, oil companies are investing in unconventional oil resources. In general, unconventional oil production has greater environmental impacts than conventional oil production. The Canadian oil sands (often called tar sands) are Shell’s largest unconventional oil reserve. As of 31 December 2010, Canadian oil sands amounted to 26% of Shell’s proven oil reserves. Oil reserves refer to the oil production Shell has secured to exploit in the future.

The oil sands are found in the Canadian province of Alberta. In December 2010, the government of Alberta listed 47 oil sands projects that are planned, underway, or recently completed. The total investment costs for these projects amounted to USD 85 billion. read more

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Shell starts mining second oil sands project

THE GLOBE AND MAIL

Wednesday, September 15, 2010 6:02 PM

Tim Kiladze

For the past five years, Royal Dutch Shell PLC (RDS.B-N56.810.611.09%) has been digging its Jackpike Mine and building infrastructure around it, such as cooling towers and crushers, all as part of its Athabasca Oil Sands Project that has a current productoin capacity of 155,000 barrels of oil a day.

The new mine is now ready to start digging up oil sands bitumen and will eventually add another 100,000 barrels of oil a day to Shell’s capacity. By bringing the new project on stream, Shell predicts its global oil and gas production will rise by 11 per cent from 2009 to 2012. read more

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Royal Dutch Shell Delays Oil Sands Expansion, Globe Reports

April 29 (Bloomberg) — Royal Dutch Shell Plc has put plans to expand operations in Alberta’s oil sands on hold for at least five years, the Globe and Mail reported, citing Marvin Odum, the company’s Americas head.

Costs to build in the oil sands have increased, prompting the company to delay any decisions to expand its Athabasca Oil Sands project until at least the second half of the decade, the newspaper said.

Royal Dutch will instead focus on increasing production at existing facilities, planning to produce a further 30,000 to 80,000 barrels a day, Odum told the Globe.

To contact the reporter on this story: Sean B. Pasternak in Toronto at [email protected].

Last Updated: April 29, 2010 07:10 EDT

Bloomberg.com Article
read more

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Shell International Upstream To Power Growth

INVESTOPEDIA

Posted: Apr 02, 2010 15:34 PM by Eric Fox

Royal Dutch Shell (NYSE: RDS.A, RDS.B) will utilize its large portfolio of international upstream projects to grow production, reaching 3.5 million barrels of oil equivalent per day (BOE/D) by 2012. This 11% production growth will be powered by the startup of large projects in its international portfolio, including ones in Qatar and the Canadian oil sands.

These and other international projects initiated by Royal Dutch Shell will add about 600,000 BOE/D to its production base over the next three to four years. read more

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Shell committed to tar sands despite $42m losses

Shell has pledged to continue with its controversial tar sands projects but has been forced to consider far-reaching cost cuts to keep the operations going after they lost $42m (£28m) in the last three months

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Shell faces Alberta oil sands dispute

John Abbott, Shell Canada’s executive vice-president, said Shell had taken early voluntary action, making its ventures the least greenhouse gas intense of all mineable oil sands projects.

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Green groups want Shell oil sands permits rescinded

"Shell has broken a binding agreement," said Simon Dyer, oil sands program director at the Pembina Institute. Regulators "can reopen those approvals given that Shell has clearly reneged on its commitment.

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In the shadow of Canada’s oil boom

Many in Fort Chipewyan hope low oil prices will put the brakes on that development. They believe they are suffering from the aftershocks of an industry expanding at a rampant pace without the necessary environmental limits.

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Shell delays oil sands decision

Royal Dutch Shell has delayed another Canadian oil sands project, saying it was reviewing its plan to find ways to "improve the project economics by reducing costs and increasing project revenue".

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Shell stall plans amid slump in prices

Royal Dutch Shell PLC said yesterday that it has withdrawn an application to build its 100,000-barrel-a-day Carmon Creek oil sands project, near Peace River in northwest Alberta. The company will now seek to reduce the costs of development before it goes back to regulators.

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Peace River project shelved by Shell

Royal Dutch Shell has put on hold another multibillion-dollar Alberta oilsands project, the second in a month, as it struggles with low commodity prices and increasing Alberta construction costs.

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Oil-Sands Spending to Fall 20% on Shell, Suncor, Encana Delays

Nov. 11 (Bloomberg) -- Energy companies are cutting back development of Canadian oil sands, the world's biggest energy reserves outside Saudi Arabia, as crude prices plunge and processing costs become prohibitive. Royal Dutch Shell Plc, the world's second-largest oil company... said they will reduce plans to extract bitumen, the tar-like raw material for the crude, after prices fell 65 percent to $37.07 a barrel since July 4.

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Shell Wagers That Delays Will Pay Off

Practically speaking, therefore, it is easier for Shell to ease off in Canada during a period of uncertainty than in many other countries.

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Exxon, Shell Earnings Jump

Even as Exxon Mobil Corp. and Royal Dutch Shell PLC reported another round of enormous profits Thursday, Shell said it will postpone the expansion of a big energy project, in a sign that plunging crude prices and high costs are raising concerns among executives of the world's largest oil companies.

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UPDATE 3-Shell to delay oil sands expansion project

The move is the latest in a line of project deferrals among companies active in squeezing crude from Alberta's bitumen-soaked soil in a trend that is dimming Canada's energy production outlook.

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Higher costs force Shell to delay investments

A final decision on investing in the second phase of Athabasca in Alberta was due next year, but Shell chief executive Jeroen van der Veer said yesterday that approval had been delayed indefinitely. "We wait for costs to cool down before any new investment decisions," he said.

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Shell to hold back on oil sands project

Royal Dutch Shell has delayed a planned investment in Canada's oil sands, in the latest sign of companies adjusting their plans to reflect the global economic downturn and the fall in the price of oil.

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Shell delays Athabasca expansion decision

Royal Dutch Shell Plc (RDSa.L: Quote) said on Thursday that it would delay its investment decision on a second expansion of its Athabasca oil sands project, the latest deferral sparked by falling energy prices and a global financial crisis.

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Shell and Tree Canada together plant one million trees

CALGARY, Sept. 25 /CNW/ - Shell Canada and Tree Canada today announced the planting of their one millionth tree, part of a planting program that will sequester more than 650,000 tonnes of carbon dioxide.

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Life in Alberta’s teeming oilsands camps highlights the transient nature of the bitumen brigade

By day, the Athabasca Oil Sands Project, Expansion 1 is abuzz with beeping, growling machines, but now there is silence, save for the distant thump of air cannons warning waterfowl away from tailings ponds and the faint sound of a road crew working the night shift somewhere on the 50-square-kilometer bitumen mining site operated by Shell Canada and partners Chevron Canada and Marathon Oil.

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Black-Gold Rush in Alberta

The Wall Street Journal: Black-Gold Rush in Alberta

“Shell Canada Ltd., a unit of Royal Dutch Shell PLC, disclosed last month that it has boosted its cost projection for a proposed 100,000 barrel-a-day expansion of its Athabasca oil-sands mine by 80%, to 7.3 billion Canadian dollars (US$6.18 billion).”

With Price of Crude Staying High,
Tapping Into Canadian Oil Sands
Looks Increasingly Profitable

By TAMSIN CARLISLE
Staff Reporter of THE WALL STREET JOURNAL
September 15, 2005; Page C1

CALGARY, Alberta — By briefly blasting oil prices above $70 a barrel, Hurricane Katrina may have blown away any lingering doubts among oil producers about the long-term profitability of multibillion-dollar projects in the vast oil sands of this western Canadian province.

The supply disruptions caused by the hurricane also may stoke further U.S. interest in the oil sands as a stable, long-term supply source. read more

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BLOOMBERG: Shell Canada Oil-Sands Cost Target Jumps to C$7.3 Bln

BLOOMBERG: Shell Canada Oil-Sands Cost Target Jumps to C$7.3 Bln

“Shell Canada Ltd., the fourth-largest Canadian oil company, said the cost to expand its Alberta oil- sands development will almost double to C$7.3 billion ($6 billion)…”

Posted Wednesday 10 August 2005

(Bloomberg) — Shell Canada Ltd., the fourth-largest Canadian oil company, said the cost to expand its Alberta oil- sands development will almost double to C$7.3 billion ($6 billion) as prices of steel, cement and equipment rise.

Design changes that will make additional expansions easier also are inflating the cost, spokeswoman Janet Annesley said today in a telephone interview. Calgary-based Shell Canada and its project partners, Chevron Corp. and Western Oil Sands Inc., in April said the expansion would add 100,000 barrels a day of mining and refining capacity at a cost of at least C$4 billion. read more

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Edmonton Sun (Canada): Shell bulks up!

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

Edmonton Sun (Canada): Shell bulks up!

Shell Canada Ltd now expects the next phase of expansion at its Athabasca oilsands project in northern Alberta to cost about $7.3 billion. That is nearly twice the estimated price released last fall.”

Wednesday 10 August 2005

By CP

CALGARY — Shell Canada Ltd. now expects the next phase of expansion at its Athabasca oilsands project in northern Alberta to cost about $7.3 billion.

That is nearly twice the estimated price released last fall.

Shell said yesterday its first major expansion at the Athabasca project, still targeting a 100,000-barrel-daily production boost, would now include “over-building” of common infrastructure to make further expansions cheaper and easier.

“The scope and scale of the expansion has been modified to include pre-building of infrastructure and utilities to support our longer-term goal of 500,000 barrels per day,” Shell spokesman Janet Annesley said. read more

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The Globe & Mail (Canada): Shell sees soaring costs

The Globe & Mail (Canada): Shell sees soaring costs

“Shell Canada Ltd. now expects the next phase of expansion at its Athabasca oil sands project in northern Alberta to cost about $7.3-billion, nearly twice as much as estimates released last fall.”

Posted Wednesday 10 August 2005

Canadian Press

CALGARY — Shell Canada Ltd. now expects the next phase of expansion at its Athabasca oil sands project in northern Alberta to cost about $7.3-billion, nearly twice as much as estimates released last fall.

Calgary-based Shell said Tuesday its first major expansion at the Athabasca project, still targeting a 100,000 barrel daily production boost, would now include “over-building” of common infrastructure to make further expansions cheaper and easier. read more

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Shell Canada provides updates for oil sands operations and expansion plans

NewsWire.ca (Canada): Shell Canada provides updates for oil sands operations and expansion plans

“We are also building on the lessons learned from our first project to capture cost and operating efficiencies,” said Neil Camarta, Senior Vice President Oil Sands, Shell Canada Limited.”

Posted Tuesday 9 August 2005

CALGARY, Aug. 8 /CNW/ – Shell Canada Limited provides the following update on current operations and expansion plans for the Athabasca Oil Sands Project (AOSP), located in northern Alberta.

Operations

In April 2005, Shell indicated that planned maintenance in the third quarter of this year would result in single train operation at the upgrader for a period of one to two months. Ongoing inspections and equipment monitoring now indicate that major shut down activity can be deferred until the second quarter of 2006. A production cutback is still required in September to accommodate reduced availability of third-party hydrogen to the upgrader and to allow minor planned maintenance to be carried out on the Scotford hydrogen plants and the Muskeg River Mine cogeneration plant. read more

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Shell to spend 4 bln usd to boost Canada’s Athabasca bitumen output

AFX UK (Focus): Shell to spend 4 bln usd to boost Canada’s Athabasca bitumen output

Posted 22 Sept 2004

LONDON (AFX) – Royal Dutch/Shell Group said it will spend 4 bln usd to raise bitumen production at its Athabasca oil sands project in Canada to 270,000-290,000 barrels per day by 2010.

It will ramp up production to 155,000 barrels initially, then over the next three years, a series of debottlenecking projects at the Muskeg river mine and Scotford facility will bring output to 180,000-200,000 barrels.

Between 2006 and 2010, planned expansions at Muskeg and Scotford are expected to further increase bitumen throughputs by 90,000 barrels per day, taking total production at Athabasca to 270,000-290,000 barrels per day. read more

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