The Alberta Chamber of Resources has identified the oil sands as their priority mineral resource for development this year. The Chamber believes that further mineable oil sands development should proceed now.
A mineable oil sands project would provide substantial economic benefits to all of Canada. For example, a 60,000 barrel per day plant would provide an annual average of 15,000 jobs during the six year construction phase and 6,000 new permanent jobs for the operating phase of 30 years or more. Over one half of these Jobs would be provided to regions outside Alberta during construction and approximately one third of the jobs would be provided to regions outside Alberta during operations.
The technical, reserve and cost risks associated with mineable oil sands development are low compared to other new sources of oil within Canada. Mineable oil sands projects are strong vital projects as they stand. A lengthy development period is not required Technology is available and demonstrated now, and further development should go ahead now.
The Chamber believes that production from the mineable oil sands will be needed to meet future domestic needs. Given the current estimates for future oil price, oil can be produced from the mineable oil sands at a cost competitive with import Canada will also benefit from the increased economic activity during a period of time when her labour and manufacturing forces are forecast to be underutilized from increased tax revenues (at the very least from greater employment), from future improvements in her balance of trade, and from increased security of oil supply.
For mineable oil sands projects to proceed, a fiscal regime will have to be developed that recognizes the benefits and risks of mineable oil sands developments. The Chamber has been encouraged by the favourable trend in commercial terms development experienced by the Cold Lake Wolf Lake and Bi-Provincial Upgrader projects. Mineable oil sands projects cannot serve as major short term generators of tax revenue, but can provide a major source of Economic activity and employment within Canada by producing oil at a cost competitive with imports.
The Alberta Chamber of Resources has been the cornerstone of Alberta's mineral resource industry for almost half a century. Formerly known as the Alberta Chamber of Mines, the Chamber is committed to fostering the orderly development and public appreciation of energy, metallic, and industrial minerals. Over 340 organizations are represented in the Chamber' s membership, covering broad spectrum of developers and service companies.
The Chamber has identified the Alberta oil sands as the priority mineral resources for development for this year. Towards this end, a task force of industry representative has been set up to promoteoil sands development. One of the specific objectives of our task force is present and publicize the social and regional benefits of oil sands development.
The purpose of our presentation today is to acquaint or re-aquaint you with the mineable oil sands and present our case for their immediate development.