Action is needed to stem the huge demand for water used to extract bitumen from oilsands, according to a report issued today by the Pembina Institute. Troubled Waters, Troubling Trends details the seriousness of the issue, backed by never before reported statistics on the use of water in the oil and gas industry.
Water use for both mining and in situ production (to recover bitumen too deep to mine) is growing rapidly. If planned mining projects go ahead, water withdrawals from the Athabasca River will increase by more than one-third. At current withdrawal levels there are already concerns about environmental impacts during low flow periods. While in situ production uses less water than does mining — usually less than a barrel of water per barrel of synthetic crude oil compared to 2-4.5 barrels for mining — the extent of planned projects means water use is a definite concern. Of total bitumen reserves, 93% will be accessed via in situ operations.
Despite water recycling and the use of some saline water for in situ production, companies expect fresh groundwater to provide two-fifths of the needed supply for the next decade or two.
"The increasing demand for fresh groundwater for in situ production is a concern, as the water does not return to the watershed," said Dr. Mary Griffiths, Senior Policy Analyst with the Pembina Institute. "We do not know how much withdrawal is sustainable, due to limited knowledge about fresh water aquifers and the fact that climate change will likely affect the rate at which they are recharged."
Work is underway to test alternatives to water for in situ production, but it is too early to know if they will be effective. All large projects currently use water.
"Reduction in water use must be a priority," says Griffiths. "Our report proposes policies to encourage this and to protect the environment."
"Companies currently do not have to pay volume-based charges for the water they use," said Amy Taylor, Pembina's Director of Ecological Fiscal Reform. "A fee on fresh water would provide companies with an incentive to maximize efficiency and to seek opportunities to eliminate or reduce water use."
According to the report, Alberta's new Water Conservation and Allocation Policy for Oilfield Injection, which applies to in situ operations as well as to conventional oil, must be strictly implemented to ensure companies make every effort to reduce water use. An eight-page summary and the full report are available on the Pembina Institute website.
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For more information contact: Dr. Mary Griffiths, Senior Policy Analyst. Tel: 780.433.6675
