What are Oil Sands?
Oil from Canada is in such abundance it can provide the United States with nearly 170 billion barrels of oil and remain our nation's biggest supplier of imported oil.
Unbeknownst to many Americans, Canada is America's leading supplier of imported oil, and oil sands from Canada provide a major portion of this supply. Oil sands are naturally occurring mixtures of sand, clay, water and a form of petroleum called bitumen—which can be upgraded for synthetic crude oil and refined to make asphalt, gasoline, jet fuel and some chemicals. It is estimated the country has nearly 170 billion barrels of oil sands and over time, Canada could increase production from its current 1.4 million barrels per day to approximately 3.5 million barrels per day in 2025.
To put these volumes in perspective, Indiana uses over 154 million barrels annually to fuel its energy requirements.
The biggest value of Canadian oil sands to Indiana is contributing a stable source of energy. This is critical because many of the state's industries, which provide jobs for thousands of Hoosiers and millions in revenue, rely on oil for operations. For example, Indiana’s manufacturing industry, which is a leading producer of recreational vehicles, transportation parts and other automotive accessories, is dependent on oil. Oil is also used for Indiana's farming businesses, such as corn, soybeans and hogs, to run their operations, from powering tractors and irrigation systems to transporting goods to market.
Thus, greater access to stable supplies of energy from Canadian oil sands could translate into more cost-effective operations for Indiana’s employment sectors. A more reliable flow of oil will allow farmers and manufacturers to grow their businesses and add jobs. This same effect could propagate across other industries in the state that rely on oil, as well as to other states - increasing the nation's overall energy and economic security.
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