6.4.3 Oil Sands Case Study
Completion requirements
6.4.3 Alberta Oilsands
How can we reduce the environmental impact of globalization?
Case Study: Alberta Oilsands
Oilsands Interpretive Centre, Fort McMurray
Courtesy of Bob Pandachuk
Courtesy of Bob Pandachuk
Suncor upgrader
Courtesy Pembina Insistute
Courtesy Pembina Insistute
At one time, Fort McMurray was the fastest growing community in Alberta. The global market for oil created an economic boom in the area because of the vast oil deposits in the oilsands that rival the reserves of Saudi Arabia. This boom has been a financial bonus for the province, with high revenues and many high paying jobs attracting workers from across the country.
But how much growth is too much? Prior to the 2016 wildfire, the population grew rapidly, more than doubling in nine years. Since 2016, the population has shrunk by 11%. During the boom, housing costs skyrocketed and infrastructure did not keep pace with the growth. As of July 2006, the town was short 2 schools, nearly 3000 homes, and 17 police officers.
The city needed a new water treatment plant, a police station, a recreation centre, and a fire hall. The regional health authority claimed to be short 153 workers, and at one point during the summer, only one doctor was available on-call in the emergency department of the hospital. One report estimated the area would need $1.2 billion in infrastructure to accommodate growth-costs that continually increased because of the overheated economy. Mayor Melissa Blake claimed that the growth in the area was "financially unsustainable".
The pace of oilsands development is also causing great damage to the environment. The Athabasca Tar Sands has been identified by the United Nations as one of the top 100 environmental hot spots on the planet. The reserves that cover one quarter of the province lie under a huge layer of "overburden" or soil. Conventional extraction processes require that overburden be removed to get at the oil sand.
"Land is being chewed up by oilsands mining faster than it can be reclaimed or compensated for by the creation of protected area. Even if there is enhanced reclamation going on, there's a point at which the boreal forest can't tolerate that amount of impact that quickly. The pace of development is something that has to be put on the table, " said Chris Severson-Baker of the Pembina Institute. Although reclamation is ongoing, Severson-Baker points out that after 30 years of oilsands mining, no land has been declared fully restored. "There's been no evidence of a company being able to restore boreal forest after it's been mined.'' As well, the process of extracting the oil from the sands takes an incredible amount of water.
Social problems accompanied this period of growth. Fort McMurray's assault rate was nearly twice the provincial average, and its drug offences were triple. Homelessness caused by high housing prices and lack of support for those with mental health issues added to the concerns of many residents.
Aboriginal leaders have called for assistance in dealing with the economic growth.
While area leaders called for the province and the oilsands developers themselves to find a solution, the government claimed that the community needs to deal with its development issues. In a comment that shows lack of government support, the Premier of Alberta, Ralph Klein, said, "I always said people are entitled to go broke." Suncor spokeswoman Darcie Park said delaying or stopping oilsands projects will not necessarily solve the problems. "Industry should do what industry does best, which is to work to responsibly develop the resource,'' she said. "Governments should do what they do best, which is to identify needs for public funding and provide the funding.''
But how much growth is too much? Prior to the 2016 wildfire, the population grew rapidly, more than doubling in nine years. Since 2016, the population has shrunk by 11%. During the boom, housing costs skyrocketed and infrastructure did not keep pace with the growth. As of July 2006, the town was short 2 schools, nearly 3000 homes, and 17 police officers.
The city needed a new water treatment plant, a police station, a recreation centre, and a fire hall. The regional health authority claimed to be short 153 workers, and at one point during the summer, only one doctor was available on-call in the emergency department of the hospital. One report estimated the area would need $1.2 billion in infrastructure to accommodate growth-costs that continually increased because of the overheated economy. Mayor Melissa Blake claimed that the growth in the area was "financially unsustainable".
The pace of oilsands development is also causing great damage to the environment. The Athabasca Tar Sands has been identified by the United Nations as one of the top 100 environmental hot spots on the planet. The reserves that cover one quarter of the province lie under a huge layer of "overburden" or soil. Conventional extraction processes require that overburden be removed to get at the oil sand.
"Land is being chewed up by oilsands mining faster than it can be reclaimed or compensated for by the creation of protected area. Even if there is enhanced reclamation going on, there's a point at which the boreal forest can't tolerate that amount of impact that quickly. The pace of development is something that has to be put on the table, " said Chris Severson-Baker of the Pembina Institute. Although reclamation is ongoing, Severson-Baker points out that after 30 years of oilsands mining, no land has been declared fully restored. "There's been no evidence of a company being able to restore boreal forest after it's been mined.'' As well, the process of extracting the oil from the sands takes an incredible amount of water.
Social problems accompanied this period of growth. Fort McMurray's assault rate was nearly twice the provincial average, and its drug offences were triple. Homelessness caused by high housing prices and lack of support for those with mental health issues added to the concerns of many residents.
Aboriginal leaders have called for assistance in dealing with the economic growth.
While area leaders called for the province and the oilsands developers themselves to find a solution, the government claimed that the community needs to deal with its development issues. In a comment that shows lack of government support, the Premier of Alberta, Ralph Klein, said, "I always said people are entitled to go broke." Suncor spokeswoman Darcie Park said delaying or stopping oilsands projects will not necessarily solve the problems. "Industry should do what industry does best, which is to work to responsibly develop the resource,'' she said. "Governments should do what they do best, which is to identify needs for public funding and provide the funding.''