CANADA'S Oil Sands

To View UTS' 2009 Annual Report

As the world’s demand for energy continues to increase, the importance of Canada’s oil sands becomes ever more apparent. In addition to the 1.7 million barrels per day of crude oil that is used domestically, Canada is a net exporter of crude oil, shipping almost 2.5 million barrels per day in 2008 to the United States. Of Canada’s 175.3 billion barrels of crude oil reserves, the oil sands account for the lion’s share – 170.4 billion barrels of oil sands bitumen. As the chart below indicates, Canada’s crude oil reserves rank second in the world.

World Oil Reserves vs. Canada's Oil Sand


Oil Sands

Canada’s oil sands are important not only due to their sheer size, but because of their location in one of the world’s most politically stable countries. The energy industry can invest confidently in projects with long lifespans, knowing that the federal and provincial governments, as well as regulators, are steady and secure. As a result, Canada’s oil sands are a major contributor to our economy and have created jobs across the country. In fact, a 2009 study by the Canadian Energy Research Institute (CERI) predicts that oil sands investment will create $1.7 trillion in gross domestic product and almost half a million jobs over the 25-year study period.

Alberta's Oil Sands

Canada’s oil sands are located almost entirely in the Province of Alberta, primarily in the Athabasca, Peace River and Cold Lake areas.

The majority of the oil sands that have been recovered to date are those that lie close to the surface, recoverable through surface mining techniques. Approximately 68 per cent of the remaining established mining reserves are currently being developed, which in turn accounts for approximately 20 per cent of Canada’s remaining oil sands reserves. Mining carries little risk in terms of the ability to extract bitumen. The processes, although capital-intensive, have been evolving for over 40 years to become increasingly efficient and to meet stringent regulatory requirements in terms of their environmental impact.

The remainder of the oil sands resource – approximately 80 per cent – lies too deep beneath the surface to be mined. They are referred to as “in situ” and accessed using drilling techniques that are similar to those used by conventional oil and gas producers. Less than three per cent of the remaining established in situ reserves are currently being developed. UTS’ focus is primarily on developing mineable oil sands resources, although the company also has leases that are prospective for in situ development in the future.

Crude Bitumen In-Place Volumes and Production