Memo

To

: Mr. Dave Bradly

From

: Rakhadian Dwi Jadmiko

Dept.
Subject

Date : 24th February 2014

: Petroleum Engineering
: Athabasca Oil Sands Project

Objective : To give information about considering oil sands project

Summary
The result shows that Canada has the biggest source of the
Athabasca Oil Sands. From my research, exploit the Athabasca oil sands
have advantages and disadvantages. There are consideration things
before we begin this project.

Background
Nowadays the world oil prices are high. Oil companies like us must
consider exploiting alternative source of oil. And we have information that
the Athabasca oil sands in Canada provide an enormous and accessible
reserve of oil. It is draw the attention of our company to research about
the Athabasca Oil Sands.

Result
Environmental risk
The location of Athabasca oil sands are covered by forest in an area
of natural beauty. And steam extraction process the Athabasca oil sand
needs a lot of water, but on that location, just river has source of water. So
if we still doing that, river will probably be polluted and can kill the wildlife
that lives there. In addition, it will affect the lives of the native people who
live there. I think it is a bad effect for environment around that location.
Financial risk
Exploitation costs of the Athabasca oil sands are low. But the steam
extraction process is expensive because it uses a lot of energy, so
production costs of the Athabasca oil sands are high. I think its not
profitable for our companies.
The business opportunity
I think so hard to discuss the business opportunity when this project
has bad effect for environment and not profitable for financial sector.
Maybe in the few years later, this project has better the business
opportunity, when the technologies develop too.

Conclusion
This project has environmental risks and financial risks are too
great. When we still did this project, it is very risks for this companys
reputation.

Recommendations
I recommend to continuing exploit our more conventional resources.