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October 2004

Vol. 9, No. 44 Week of October 31, 2004

Alberta looking at ban on fresh water in oil sands development

Gary Park

Curbs on the use of fresh water to boost Alberta’s oil production could be gradually introduced over the next 10 years, averting any immediate ban that could slow the pace of oil sands expansion.

A multi-stakeholder committee ended an 18-month review by agreeing to a compromise and spurning pleas by drought-stricken towns and farming regions for tougher action.

The committee was made up of 15 representatives from petroleum industry, environment, agriculture and government sectors.

The recommendations will now go to Environment Minister Lorne Taylor, although a final decision will be delayed until after an Alberta election on Nov. 22.

Government figures show the oil and gas industry consumed 47.1 million cubic meters of water in 2001, down sharply from 88.7 million in 1973.

But heavy oil and bitumen operations need three to four barrels of water for every one barrel of output, while the use of waterfloods in enhanced oil recovery schemes doubles the water consumption.

However, the need for oil in EOR projects is shrinking as other technologies such as carbon dioxide flooding are developed.

The advisory committee wants new regulations implemented over the next three years to ensure the industry uses only fresh water where no economically feasible alternatives exist.

It also called for review of 292 water-use permits that have expiry dates and review of 336 permanent licenses.

Committee co-chair Mary Griffiths, of the Pembina Institute for Appropriate Development, said Oct. 22 that the phased-in changes are a “start in the right direction.”






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