IB ESS SL 7.1.8 Dynamic natural capital value Question Bank

Tar sands are deposits of heavy crude oil in bitumen/tar, sand, clay and water. They are too thick to flow unless heated. Extraction becomes financially worthwhile as oil prices increase and can improve energy security for Canada and the USA. Water is pumped from local rivers, made into steam at 305°C and pumped into the tar sands so the oil can be brought to the surface. The mixture must be refined, and deposits may be mined by strip-mining or deep pit mines.

About 80% of global tar sands deposits are in Alberta, Canada, mostly in the Athabasca field. There may be 1350 billion barrels of oil, with about 10% extractable. Extraction is described as the largest capital project on Earth. The Keystone XL pipeline would carry crude oil south to US refineries and an extension may cross the Ogallala Aquifer, a major freshwater reserve providing drinking water to 2 million people.

Opponents say tar sands produce three times more greenhouse gas emissions than conventional fossil fuels; fossil fuels are burned to heat extraction water; underground carbon stores become available; oil produced is burned; boreal forest is cut down; wildlife is displaced or dies; only 10% of water taken from the Athabasca River is returned; toxic waste ponds may leak into river and groundwater; indigenous people may be displaced and face health impacts. Supporters say tar sands improve energy security for Canada and the USA; Canada supplied much crude oil to the USA; Keystone XL may create jobs; companies reinvest in carbon capture and storage; 7.5 million trees have been replanted.

Explain how the exploitation of tar (oil) sands demonstrates the dynamic nature of a resource.