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Oil From Sand
The world's second largest reserve with 50 percent more oil than Iraq is actually across the border in the province of Alberta, Canada. As of this year, Canada's oil reserves suddenly jumped by 3,600% from 4.8 billion barrels (bbl) last year to 180 bbl. This is due a drop in the cost of producing oil from Alberta's oil sands, which qualified the resource to be categorized in the economically recoverable 'proven reserve' column. Oil sand is mud-like material composed of sand, water and clay wrapped in thick hydrocarbon called bitumen. Once the bitumen is separated from the sand and the water it can be refined into synthetic crude. Canadian officials boast that approximately 300 billion barrels underlie the 30,000 sq. miles of Alberta and are ultimately recoverable enough to pave a four lane super highway to the moon Oil sands proponents promise that though production price is high--with current technology about $9 per barrel compared to $2 a barrel of Persian Gulf crude--it is likely to drop and become competitive. oil sands are now producing more oil than conventional crude reserves. They also hold that such non-conventional crude spares oil companies high transportation and security premiums involved in importing oil from the volatile Middle East.

Last Updated on February 2nd, 2007 11:30 am by admin
 
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