Selling the Sands

The size of the Athabasca Oil Sands deposit was understood to be very large, even from the earliest days of its discovery. While the exact nature of the composition of the deposit was not well understood, it was known that a major component of it was some sort of hydrocarbon. This knowledge fuelled speculation as to the possible uses and value of the oil sands.

Even though people realised that the oil sands might be very valuable, development did not rush ahead. A number of challenges stood in the way. First, the resource was in a remote location, far from population centres, in an area that was not conveniently served by roads or railways. Second, before refining methods were developed, the most practical use for the bitumen was as a road surfacing material, a type of product that did not promise a great return on investment.

Third, when new technology later made it possible for petroleum products to be refined from the bitumen that was separated from the sand, the lower production costs of conventional oil stood in the way of oil sands development.

Without investors willing to take a risk, the oil sands remained a resource in waiting. Until the right combination of attractive economic and technical conditions arose, the oil sands were a hard sell. Despite these conditions, there were those who had faith in the commercial prospects of the oil sands, were convinced that they could make a go of it, and were willing to try to convince others.