From: michael a. lebowitz (mlebowit@SFU.CA)
Date: Wed Jan 25 2006 - 22:33:17 EST
At 12:14 25/01/2006, you wrote: > > A major difference between the Alberta oil sands and the heavy oil > > deposits in Venezuela's Orinoco Belt is temperature; for the latter, > > it averages 53C (and the resource tends to be liquid) whereas for the > > former it is about 11C (and tends to be solid). > >Michael L, > >Why would this lead to significant differences in non-labor costs? >Would the energy required to process the oil be significantly >different because of the temperate difference? No time to explore the questions--- here's an excerpt from a report by bernard mommer that I drew my point from: At this point, and in order to understand fully the subsequent issues, it is important to step aside for a moment in order to clarify the extra-heavy crude/natural bitumen distinction and discuss its implication in more depth. The difference between extra-heavy crude and natural bitumen lies in the simple fact that extra-heavy crude is a liquid whereas natural bitumen is not: there is no chemical difference between them. Nevertheless, as far as production techniques and production costs are concerned, the difference between a solid and a liquid is of fundamental importance. Natural bitumen is far more costly to produce than extra-heavy crude because it either has to be mined, or heat has to be injected into the reservoir to convert it into a liquid (with results in upward of one barrel of oil being consumed for every three barrels produced to generate heat). Around 90% of extra-heavy crude in the world is located in one reservoir: in the Orinoco Oil Belt; and 90% of natural bitumen in the world is located in the Tar Sands of Athabasca, in the Canadian Province of Alberta. The difference between the two locations in simply their temperature: the average temperature of the reservoirs in the Orinoco Belt is around 53ºC, whereas in the Athabasca Sands it is barely 11ºC. In short, it’s hot in Venezuela and cold in Canada and this affects the state of the natural resource and its classification as extra-heavy crude or natural bitumen respectively. m >Of course, there would be labor cost differences (between Alberta >and the Orinoco R. region) but there are probably also variations >in transportation infrastructure that might partially off-set that >difference. > >What part of the Orinoco River region are the oil sands located? >(the Orinoco is over 2,100 km long). What sort of discussion in >Venezuela has there been about the possible environmental effects >of mining and processing the tar sands? It is in an environmentally >important and sensitive area, isn't it? (The Orinoco is connected to >the Rio Negro River which is a tributary of the Amazon River). > >In solidarity, Jerry Michael A. Lebowitz Professor Emeritus Economics Department Simon Fraser University Burnaby, B.C., Canada V5A 1S6 Currently based in Venezuela. Can be reached at Residencias Anauco Suites Departamento 601 Parque Central, Zona Postal 1010, Oficina 1 Caracas, Venezuela (58-212) 573-4111 fax: (58-212) 573-7724
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