Unconventional oil

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Muskeg River Mine, Canada (picture)

By 2015, 10–15% of our overall oil and gas production could come from unconventional sources like oil sands and gas-to-liquids. We are committed to pursuing their development in an environmentally and socially responsible way.

Canada’s vast oil sands – a mix of tar-like heavy oil and sand – are thought to contain as much oil as Saudi Arabia has conventional. Shell Canada’s Athabasca Oil Sands Project already produces enough oil to meet the equivalent of approximately 10% of Canada’s oil needs. In 2006, the decision was taken to expand the project’s production by 65%, to 255,000 barrels of oil a day. Additional oil sands expansions are being considered that could increase production to more than 500,000 barrels a day. Following a successful offer to buy out Shell Canada’s minority shareholders, Shell is proceeding to acquire the remaining shares, a step that will strengthen our position in future oil sands production.

In Colorado, USA, the Shell Unconventional Resources Energy project (SURE) is testing technology to produce oil from oil shale. Heaters lowered into the ground increase the temperature underground to more than 300ºC to convert the shale into high-quality light oil – a process that takes millions of years in nature. The USA Government estimates that oil shales contain one trillion barrels of oil in the USA alone – four times Saudi Arabia’s proven reserves.

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