The rising price of oil brought on by the turmoil in the Middle East and fresh concerns about Saudi Arabia's long-term supply underscores the rising importance of unconventional oil reserves. Brazil has its deepwater plays; Kazakhstan's oil lies deep beneath the Caspian Sea. And then there’s Canada, which, according to the International Energy Agency, will be the world’s fifth-largest incremental oil producer until at least 2035.

Canada’s role as an energy powerhouse is because of Alberta's oil sands – the largest oil source outside Saudi Arabia – which account for 55% of its crude-oil production. Current oil-sands reserves stand at 170 billion barrels and a further 145 billion could be developed in future.

In February, Alberta's government said it was backing the construction of a C$5bn (€3.7bn) bitumen refinery planned by Canadian Natural Resources and North West Upgrading as it seeks to develop energy- processing facilities and create jobs.

While some fret about Canada putting economic needs ahead of the environment, it seems that real ecological progress is being made. Shell Canada has embarked on a major trial for managing tailings – the huge pools of fine clay, sand, water and residual bitumen produced through oil- sands extraction that so antagonise green activists – from its Muskeg River operation.

When tailings are released into a pond, the heaviest material – mostly sand – settles while water rises to the top. Th e middle layer, fine tailings, is made up of fine clay particles which often remain suspended in water for long periods. Shell claims its new drying process can turn them into dirt within weeks.

In December Shell Canada, Suncor Energy, Syncrude Canada, Canadian Natural Resources, Imperial Oil, Teck Resources and Total E&P Canada announced that they would collaborate and share research- and-development efforts relating to the management of tailings. Each company pledged to share existing tailings research and technology and to remove barriers to future collaboration R&D.

Suncor and Syncrude Canada have also made impressive gains in their tailings-management research efforts, in Syncrude's case accelerating the settling process of residual bitumen fines through the use of centrifuge technology and water capping – that is, creating freshwater lakes atop tailings. Construction of a commercial- scale centrifuge demonstration project will get underway next year, as will the first commissioned water-capping project.

Lorraine Mitchelmore, president of Shell Canada, insists leadership in environmental technology means “a lot more than improving the sustainability of the oil sands. It means investment across a broad spectrum of alternative and renewable energy sources, including wind, biofuels and others substantial projects." Shell is involved in eight North American wind farms, is investing billions in natural gas and signed a $12bn (€8.6bn) joint-venture deal with the Brazilian conglomerate Cosan recently to produce and distribute ethanol and power from sugar cane.

Nevertheless, most of the world's major energy players are smitten with Canada’s oil sands. ExxonMobil and Total have a presence, while Chinese energy companies are also active. Last year, Sinopec paid a premium for a stake in ConocoPhillips' Syncrude interests. Canada is increasingly unreceptive to foreign ownership of key resource companies, but the foreign interest underscores the potential of one of the few regions that could be producing crude for another 100 years.