AN INTERDISCIPLINARY MODEL FOR THE DEVELOPMENT OF ALABAMA OIL SANDS

Photo by Danny Smith

Earlier this week, I successfully defended this PhD dissertation at the University of Alabama at Birmingham. I began this study several years ago but placed the work on hold out of necessity while I worked night and day to start-up my consulting business. I certainly learned a lot about oil sand projects, but I am glad to have this work finished. Because of many factors, I don’t think we will see significant development of oil sands in Alabama anytime soon; nonetheless, this study demonstrates that regulatory solutions to the potential environmental and social sustainability risks presented by energy developments of all types can be addressed via simple risk management strategies. Rational solutions for energy projects that present significant environmental and social risks might include regional water, air, and biodiversity monitoring with pre-development baseline assessments to detect and respond to adverse surface water, groundwater, air quality and biodiversity impacts. Some of the potential regulatory solutions identified in the dissertation might be controversial; however, the dissertation would not have been complete without including a diverse array of potential options even if some might result in legislative or regulatory controversy. In any event, I hope that my findings provide “food for thought” as we seek to find rational compromises on potential energy developments in lieu of the polarized opposition we normally see with those in favor against those opposed to such projects.
    
ABSTRACT

    In July 2013, a memorandum of understanding (MOU) was signed by the Governors of the states of Alabama and Mississippi to jointly conduct a comprehensive geologic, engineering, and legal assessment of oil sands resources associated with the Hartselle Sandstone formation including the identification of environmental best practices associated with developing these resources. Pursuant to the MOU, the Geological Survey of Alabama (GSA) began a limited geological evaluation of the potential development of Alabama’s oil sand resources. This dissertation compliments those GSA efforts by identifying and assessing environmental and social sustainability risks associated with the potential development of Alabama’s oil sands within the International Organization for Standardization (ISO) 31010 risk management standard framework to provide an interdisciplinary sustainability risk management strategy that considers the inter-related disciplinary aspects of regulation, technology, and sustainability to address the environmental best practices component of the MOU. The bitumen extraction technologies currently being used to recover bitumen from geological formations that are most like the Hartselle Sandstone are proprietary and confidential. Furthermore, currently available bitumen extraction technologies have not been tested on Hartselle Sandstone oil sand deposits.

    In 2013 when the MOU was signed, West Texas Intermediate (WTI) oil prices exceeded $100 per barrel. Since the MOU was signed, WTI oil prices dropped below $30 per barrel and are now around $60 per barrel. While the economic aspect of oil sands development is not the focus of this dissertation, it is important to point out that interest in the potential development of Alabama’s oil sands has diminished with the price of oil. Nonetheless, this dissertation provides an interdisciplinary model for the sustainable development of Alabama’s oil sands when and if oil prices rise to incentivize such development. The interdisciplinary approach provided within this dissertation can be applied to the sustainable development of other oil and gas formations.

Danny Smith