[cdn-nucl-l] NUCLEAR POWER, ATTRACTIVE OPTION FOR TAR SANDS

["Jerry Cuttler" <jerrycuttler@rogers.com>]

FYI
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NUCLEAR POWER AN ATTRACTIVE OPTION FOR TAR SANDS: ALBERTA CHAMBER REPORT

Nuclear power is an attractive option for steam and hydrogen production for
extraction of oil from Alberta tar sands, according to a recent report by
the Alberta Chamber of Resources. The report noted that new reactor designs
offer significantly cheaper power costs while providing greater safety
margins in operation. The report observed that reliance upon natural gas
would not be "unsustainable and uneconomic". It forecast a rise in natural
gas demand for tar sands processing from 10 per cent in 2012 of Mackenzie
and Western Canada Sedimentary Basin production to 60 per cent by 2030. At
that point, the report stated, imported liquid natural gas would be setting
North American prices. Therefore, continued tar sands production meant
switching to an external fuel source such as coal or nuclear power.

The Chamber report noted that nuclear power was competitive at natural gas
prices of $4/gigajoule for an operation producing 150,000 barrels of oil per
day. However, it said more study would be needed in this area, because
operations of that size are normally spread over an area larger than would
normally be served by a single steam source.

Power Week Canada 02/02/04