Keystone Energy Forum

What are Oil Sands?

Oil from Canada is in such abundance it can provide the United States with nearly 170 billion barrels of oil and remain our nation's biggest supplier of imported oil.
 
Unbeknownst to many Americans, Canada is America's leading supplier of imported oil, and Canada's oil sands provide a major portion of this oil.  It is estimated the country has nearly 170 billion barrels of oil sands and over time, Canada could increase production from its current 1.4 million barrels per day to approximately 3.5 million barrels per day in 2025.

To put these volumes in perspective, Nebraska uses over 40 million barrels annually to fuel its energy requirements. 

The biggest value of Canadian oil sands to Nebraska is contributing a stable source of energy.  This is critical because many of the state's industries, which provide jobs for thousands of Nebraskans and millions in revenue, rely on oil for operations.  For example, Nebraska's agriculture industry, a major source of revenue and jobs for the state, uses oil for heavy equpment (e.g., tractors, combines, mowers, balers),irrigation, harvesting, transportation, and indirectly for supplies such as pesticides.

But rising energy costs threaten the livelihood of businesses in this industry by putting a heavy burden on expenses. When energy costs rise, the state sees a higher rate of loan extensions, an increased number of operating loans and more requests for state-assistance programs to alleviate the fiscal burdens.

Thus, greater access to stable supplies of energy from Canadian oil sands would translate into more cost-effective operations for Nebraska's agriculture industry, and allow farmers to grow their businesses and add jobs.  This same effect could propagate across other industries in the state that rely on oil, as well as to other states - increasing the nation's overall energy and economic security. 

Read more:

• U.S. Energy Information Administration Canadian Oil
• Canadian Oil Sands Primer