Skip to main content

O Canada: ElBaradei and the Oil Sands

oilsands-cp-5173278 Mohammed ElBaradei, the previous head of the IAEA, is in Canada to talk about energy security. When I read something like this from him:

There is a broader sense that without stability you will not really have energy security," he said in an exclusive interview with the [Calgary] Herald. "You will not have energy security unless you have a global security system that enables everybody to feel that they have enough to have a decent life. If you continue to have sort of an obscene gap between the rich and the poor and the instability, that will definitely have an impact on your energy security. Energy security is just the tip of the iceberg."

I remember why I find him an admirable figure – he did a terrific job at the IAEA promoting the needs of smaller countries and tempering some inflammatory rhetoric from a few of the more powerful member countries. The growing interest in nuclear energy throughout Asia and Africa likely owes at least a nod in the direction of ElBaradei.

The “exclusive interview” is so light on quotes, reporter Shaun Polczer must have caught him on the run. I’ll be interested to see if his speech there is covered.

---

From the same story:

The nuclear industry is well established in Canada, and especially in Ontario, which is home to the lion's share of the counter's nuclear power generation. However, provinces such as Alberta and Saskatchewan -- which is a major uranium producer -- have toyed with the idea of building nuclear reactors to provide power for oil sands production.

There’s those oil sands again. Although Canada does extract a lot of oil from the sands – it’s a process more akin to mining than drilling - the result is small compared to the potential. In an earlier post, we saw that director (and Canadian) James Cameron suggested using nuclear energy to power the extraction effort and was met by stony silence from officials.

I get that one: building the plant would be beneficial in general but committing one to help with the oil sands wouldn’t work very well economically and probably be considerable overkill. But that doesn’t mean the sands are sitting unmined. The United States gets about 22 percent of its oil from Canada and most of that (by a little) comes from the oil sands.

But the oil sands industry has come under increasing attack from environmental groups who complain about water and ground contamination, high instances of cancer in some communities downstream and the production of three times the amount of greenhouse gases as conventional oil operations.

This is a tough one to wrap one’s mind around. Clearly, the oil sands erect financial, practical and environmental hurdles that seem impossible to clear and still produce affordable – or more exactly, profitable – oil.

But equally clearly, Alberta’s Fort McMurray has become a boomtown as neighbor U.S.A. looks to Canada to help it leave behind middle Eastern-derived oil. (Even before that effort, Canada supplied more oil to America than did Saudi Arabia – 904,914 barrels in 2009 vs. 366,605, in thousands. See here for more. To make it a little more confusing, OPEC in total supplies more than Canada but OPEC includes Venezuela and Ecuador. You can decide how to tote it all up yourself.)

Financial sump hole or boon of the oil industry? Environmental disaster or ecologically responsible? I know what I think is true, but that’s not the same as knowing. This subject falls outside our brief, so further research will be sporadic – but if you’re interested, here’s a good place to start from the corporate perspective (Syncorp, in this case) and the non-corporate perspective (from MapleLeafWeb, which lays out some of the environmental and social impact issues.)

They’re called oil sands. What do you expect, a vista?

Comments

seth said…
" committing one to help with the oil sands wouldn’t work very well economically and probably be considerable overkill. "

You need to do a rethink.

You'd need 12 AP-1000's to replace all the natural gas produced tar sands process steam with nuclear. Cost a hell of a lot less too in the long run.
DocForesight said…
Wasn't the process heat aspect one of the advantages of SMRs for this type of application?

Rather than burn the coal or oil to produce steam, you "burn" the uranium or thorium and sell the oil at market prices. It looks like that is what the UAE, Saudi, Venezuela, etc are planning to do.

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...