Oil sands: Resource, recovery, and industry

Oil sand, tar sand, bituminous sandstone, oil impregnated sandstone, or bituminous sand, by one name or another, have been identified in almost every country of the world and in almost every state in the United States. By far the largest and most commercially attractive deposits are in Alberta, Canada. Within the United States, nearly 95 percent of all known reserves are in Utah, although quantities sufficient to support commercial-scale operations occur in perhaps five other states. The term "synthetic fuels" has been historically applied primarily to fuels produced from oil shale and oil sand, as well as to liquids and gases from coal or peat. Recently the term has been substantially broadened by the inclusion of biomass-derived fuels and even gas from unconventional sources such as coal mines and tight sand. Regardless of the scope of the term, it is in reality a misnomer, since the fuels to which it refers are no more "synthetic" than is the refined gasoline to which we are so accustomed. Perhaps a more accurate term would be "unconventional" or "substitute" fuels, although with the continued depletion of the world's petroleum reserves, it is likely that these fuels will eventually become more common than the "conventional" oil and gas that currently sustain our economy. Within the historical scope of the term "synthetic fuels," only the oil sand of Alberta has yielded synthetic liquid products on a truly commercial scale. Shale oil has been produced in other countries but not on the scale currently envisioned as commercial and rarely under a true free market economic system. Coal liquids and gases have powered armies and lighted cities in the past, but have never successfully competed on today's commercial scale with petroleum-based fuels in a free market environment. It is puzzling, therefore, to find that oil sand, which supports the only commercial synthetic fuels plants in the world, is almost discounted in discussions of future synfuels production. In the United States, for example, the emphasis is now on coal conversion and oil shale development. While these other sources do have a greater potential for large-scale commercialization, the deposits of oil sand can also have a substantial effect on the nation's energy future. In addition, the development of a significant industry based on oil sand in Alberta would likely provide the United States with a more stable supply of oil, although, not domestic. Both U.S. and Canadian oil sand deposits must be seriously considered when assessing the future of synthetic fuels production. The objective of this report is to present an overview of the oil sand industry, including a description of there sources and of the technologies for producing petroleum substitutes. The authors focus on the status and potential of developments in Canada and the United States.