There are a few facts about the Oil Sands
projects of Alberta that I found them very intriguing and would like to share
them here:
1- First of all Oil Sand is really not oil. I mean if you look at this
substance from chemical point of view the formula is different. They modify or
technically speaking upgrade it in a processing plant to, I think, be more like
or close enough what is called oil or conventional oil in the industry. That is
one reason it is called Synthetic Oil. Whether it could be used in the same
manner as conventional oil or not, I don’t know that for sure because it is
being traded in the market at the moment and the producers are looking to
expand their market, although I doubt they can do that, at the same time the
price of bitumen is way lower than conventional oil considering the ordinary
way of measurement in the industry, barrel. I don’t have the most updated
prices in my hands but a 28% difference is what I have noticed while the same
report indicates the cost of extraction too high in a way that the operation
would not worth at all! There should be more information to conclude a final
result.
2- Bucketwheels were first used to extract and transfer the ore and
then they got replaced with heavy haulers, the big trucks. According to the
document available through the Oil Sand Discovery Centre the application of
this huge machine later was then suspended, mainly due to high maintenance
cost, excessive power usage and long downtime during the time the machine is
out of order. I really don’t understand how someone could make such a stupid,
huge and costly mistake! Using parallel systems is a very basic fact in
maintenance of machinery in the industry. By using tens of trucks to transfer
the extracted ore from the mine to the crushing plan you basically apply that
theory. If one truck is broken or involves in an accident, you would not have
to shut down your entire production. They are replaceable at much lower cost
compare to a damn Bucketwheel and faster of course. Besides you just decrease
your production rate instead of completely stop it. Very easy fact to
understand and apply but my guess is whoever was behind manufacturing and
application of the giant machines was not present at the time that brains were
being distributed.
3- The production of bitumen shall decrease soon due to several facts
in the industry:
a. There is no agreement on any of the three major pipelines which are
supposed to take the crude (or bitumen) to the major refinery and export
points.
b. Production has been increased and is on the rise in different
corners of the world. The US has decreased its imports and resorted to produce
Shale Oil. Countries such as Iran and Iraq are favorite potentials for the
investors because both of the nations are heavily suffering from lack of
technology as well as investment.
c. Only 20% of the resources are able be be extracted through mining. The rest
should be obtained via In-Situ or SAGD methods which are more environmentally
effective while less costly.
In a nutshell
the future of Oil Sands project does not seem to be very bright and there are
challenges. The Government of Canada will fight to keep them up and
running because it gas created many jobs and will create many more an will
bring lots of revenue.
(Picture: This photo was taken from the so-called Kearl TV from the time I stayed at the related site for awhile and shows a bucketwheel. This was part of a commercial-like clip but I have no idea why they used that because mining using this giant machines was considered absolute long time before this project)
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