Supermajor Royal Dutch Shell (RDS.A) has started a new project in Alberta for speeding up reclamation of toxic waste ponds at oil sands operations. The company recently received regulatory approval for a commercial-scale test that it calls an “atmospheric fines drying” technique for dealing with tailings (waste product).
Shell runs a 155,000 barrel per day Athabasca Oil Sands Project (with 60% interest) in northern Alberta. Its partners are Chevron Corp. (CVX) and Marathon Oil Corp. (MRO) with 20% stake each. Massive tailings are emitted from the oil sands production process, which turn into an environment hazard.
Tailings are gathered into a man-made pond that holds water, leftover bitumen, clay and heavy metals from the oil sands production process.
Several methods have been tested by industry players. Shell commented that as per the new method, a barge collects mature fine tailings, or fines, from the pond at the company’s Muskeg River mine and moves them to a drying area.
The fines are mixed with chemical agents and are placed on a slope to help speed up the release of water from the clay. The water runs down to a collection area and is returned to be reused in the production process. The remaining deposits are dried further to meet reclamation requirements.
Shell’s projects and technology are providing functional leadership across the company in areas of safety and environment as well as for contracting and procurement.
The company is actively engaged to meet the increasing global energy demand in a responsible way. On the other hand, its business strategy and continuous focus on capital and cost discipline reinforces its position as a business leader in the oil and gas industry. We are currently Neutral on Shell.
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