Alberta - The Oil Sands

Do you wonder where your next tank of gasBut here in northeastern Alberta, it's frankly
may come from after the Middle East dries up, orridiculous. The mines operate fleets of the world's
the sheiks turn off the taps? How about twenty,biggest truck. It's three stories high and costs $5
thirty years from now, will your kids still be ablemillion. It carries a load of 400 tons of oil sands,
to fill up the family jalopy?Well, maybe youwhich means, at today's oil prices, each load is
shouldn't worry so much about the supply ofworth $10,000 dollars.What it's like to drive one of
petroleum products. There's an oil boom going onthese monsters? One driver described it this
right now. Not in Saudi Arabia or Kuwait or any ofway."You have 14 steps going up to the cab and
those places, but 600 miles north of Montana.In aat my house you have 14 steps to the bedroom.
city called Fort McMurray where, in the dead ofSo it's like going upstairs in my house, sitting on
winter, the temperature sometimes zooms up tomy bed and driving the house downtown", he
zero and just as often dips down to a minus 50said.The monster trucks haul the oil sands to a
degrees F, you'll find the oil sands. The oilmen upplant. They're heated in a cell, which separates the
there aren't digging holes in the sand and hopingoil from the sand. The result looks like molten
for a spout. They're digging up dirt - dirt that ischocolate. This flow is then sent to an upgrader
saturated with oil. They're called oil sands and ifand eventually to a refinery. The oil is as good as
you've never heard of them then you're in for athat pumped in Saudi Arabia, in fact, it even
big surprise because the reserves are so vast intrades at a premium because it's such high quality
the province of Alberta that they will help solvecrude oil.The capital of the oil sands frenzy is a
America's energy needs for the nextfrontier town, now a city, called Fort McMurray,
century.Within a few years, the oil sands are likelywhich as one wag said, "It isn't in the middle of
to become more important to the United Statesnowhere. It's north of nowhere". But it's a
than all the oil that comes from Saudi Arabia.boomtown just the same. "I think it's bigger than
Twenty-four hours a day, 365 days a year,a gold rush. We're expecting $100 billion over the
vehicles that look like prehistoric beasts movenext 10 years to be invested in this area - $100
across a sub-arctic wasteland, extracting the oilbillion in a population that, currently, is 70,000
sands. There is so much to scoop, so muc oil topeople", says Brian Jean, who represents the
produce, so much money to be made.There areregion in Canada's parliament.Most of the oil in the
175 billion barrels of proven oil reserves here.sands on those lumbering trucks are on their way
That's second to Saudi Arabia's 260 billion but it'sto the gas tanks of America. A million barrels a
only what companies can get with today'sday are now coming out of the oil sands and oil
technology. The estimate of how many moreproduction is expected to triple within a decade. It
barrels of oil are buried deeper underground iswon't replace Middle Eastern oil but at that point it
staggering. The total estimates could be twowill be the single largest source of foreign oil for
trillion or even higher. That's eight times thethe United States, even bigger than Saudi Arabia,
amount of reserves in Saudi Arabia. The oil sandswhich sends a million and a half barrels a day to
are buried under forests in Alberta in theAmerica.The oil companies want to step up
northeastern corner of the province, in an areaproduction quickly. What's holding them back is
that is roughly the size of Florida. The oil herelabor - the shortage of it. It's estimated that
doesn't come gushing out of the sand the way itanother 100,000 people are needed in Fort
does in the Middle East. The oil is in the sand. ItMcMurray. That's why one oil company has built a
has to be dug up and processed.The oil sandsrunway to fly workers daily from civilization to
have been in the ground for millions of years, butFort McMurray. But why would anyone want to
for decades, prospectors lost millions of dollarscome work in a place where temperatures
trying to squeeze the oil out of the sand. It simplyplummet to 40 below and the sun sets shortly
cost too much. T. Boone Pickens, a legendaryafter it rises in the long winter? Well, perhaps
Texas oil tycoon, was working Alberta's traditionalbecause the oil companies pay some of the
oil rigs back in the '60s and remembers how hehighest salaries in North America.But even if
and his colleagues thought mining for oil sands wasworkers come flocking, the oil companies still have
a joke."Here we are sitting there having a drinkother problems. Creating energy from oil sands
after work and somebody said this isn't going torequires so much energy that the oil companies
work, it isn't possible. It'll all have to be subsidizedwind up spiking greenhouse gas emissions. Other
before they'll make money. You'd have to haveless energy intensive methods of extraction are
$5 oil", Pickens says laughing. "We never thought itcontinually being invented and developed to lessen
would happen".But then $40 a barrel happenedthe environmental impact.A hundred miles south
and now $60 a barrel has happened and the oilfrom Fort McMurray, you can still see oil being
sands not only make sense, they making billionsproduced the traditional way. It's picturesque now.
for the people digging them. But it wasn't just theThe wells are still pumping but they belong to the
price of oil that changed the landscape, it was thepast, like the iron horse that once rode across
toys. That's what they call the giant trucks andthese prairies.The future? Up here in Northern
shovels that roam the mines.Everything about theAlberta they're convinced it's in the dirt, the oil
oil industry has always been big. It's characterizedsands to be exact.
by bigness, from the pumps to the personalities.