Water Resources Management and the Energy Industry in Alberta, Canada

Abstract The challenges associated with managing Alberta's water resources are increasing as a result of population growth, agricultural expansion, and industrial development, including the energy industry. This challenge is being addressed through creative initiatives at the provincial and local levels, and reflects the involvement of many stakeholders. The road ahead will involve: continued development of stakeholder-driven water management initiatives; ongoing refinement and clarification of water management objectives; and, an improved understanding of the aquifer system, including its connection to surface water. Water is an essential resource for Alberta's energy industries, which produce 70% of Canada's crude oil and 80% of its natural gas, and these industries have done much to minimize the use of water. Nevertheless, the challenge to the energy sector will be continued development of water conservation and water quality management technologies. Introduction Energy industries are of significant importance to Albertans. Alberta is rich in natural gas, oil sands, and conventional oil, and produces 70% of Canada's crude oil and 80% of its natural gas(1). Energy-related royalty revenues account for about one-third of total provincial revenue (about $7.7 billion in 2003 - 2004)(2). The mining and oil and gas industries account for more than 17% of provincial GDP. For comparison, crop and animal production contributes 1.6% to provincial GDP(3). Conventional oil, natural gas, and coal are found in many parts of the province, and heavy oil and oil sands are found in the north and east (Figure 1). The energy industry requires water for many aspects of production, in particular for enhanced oil recovery (oilfield injection), in situ heavy oil recovery, oil sands mining, and dewatering for coal bed methane. Alberta is also experiencing high population and economic growth in other sectors, also leading to increasing demands on water resources, especially in the central and southern parts of the province. Currently, there is a moratorium on surface water withdrawals for some streams in Southern Alberta. In contrast, surface water is most available in the northern part of the province. Ground water availability is less known across the province, and this lack of information creates uncertainty in the role of ground water for supply and ecosystem health. The province, therefore, faces numerous and unique water management challenges related to the energy sector and to growing demand, fluctuations and limitations in supply, the need to maintain healthy aquatic ecosystems, and commitments embedded in downstream water agreements with adjacent neighbours(4). This paper describes the issues and challenges for water management in Alberta related to the energy sector in particular. It also highlights the current policy and management strategies developed by stakeholders to address these challenges in a practical and often creative manner, to ensure sustainability of water resources while satisfying future growth opportunities. Alberta's Water Resources Alberta is one of Canada's western prairie provinces and covers 661,185 km2. The prairies are one of the driest regions of Canada. Alberta has a diversity of hydrological and hydrogeological settings that are characterized by varied physiography, geology, and climate.

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