Thursday, January 17, 2008

Crude Oil Supply - Project Costs by Type

The majority of the proposed projects will be for projects related to open pit mining. This is surprising since the majority of the crude oil is projected to come from In Situ production methods (SAGD). In situ production is regarded as being more energy intensive due to the large amount of steam that needs to be produced inorder to extract the bitumen from the oil sands. However, the open pit mining requires more heavy machinery and labour.

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