The bitumen in tar sands can be recovered by surface mining. Open-pit mining methods can be employed where thick deposits occur near the surface. Earth-moving equipment is used to strip and stockpile the topsoil, remove and dispose of the overburden, and excavate the tar sand. The recovery efficiency of surface mining tar sands is estimated at roughly 90 percent. A mill is required to separate the bitumen from the sand in order to upgrade it to commercial quality. This process includes crushing the tar sand and separating the bitumen by mixing the crushed ore with steam and hot water. The bitumen is concentrated by floating and is then treated with a solvent for final separation from the sand and water. The cleaned crude bitumen is upgraded in a delayed coking unit, which produces a blend of lighter hydrocarbon fractions that yield synthetic crude oil, naphtha, kerosene, and gas oil. While there are a large number of heavy oil fields in production throughout the world, few commercial tar sand surface-mining and synthetic-oil processing operations exist.

Economic and technical constraints

Unfortunately, there are problems associated with the exploitation of heavy hydrocarbons. Costs for tar sand mining and upgrading are considerably higher than for producing conventional oil, even in most frontier areas. The tar sand that is mined and milled along with the bitumen is very abrasive and causes rapid wear of equipment. Also, mills and upgrading (coking) facilities are very expensive.

Likewise, the heavy oils are a less desirable energy resource than the lighter crudes, for they are much more costly to extract and to process. An average of about one barrel of oil is combusted (or its energy equivalent expended) to produce the heat necessary to net two barrels of recovered heavy oil. This reduces the recoverable oil in a heavy oil reservoir by one-third.

If the heavy oil is transported by pipeline, direct heating is often required before it will flow at an acceptable rate, necessitating the combustion of additional fuel. The refining of heavy oil results in low yields of distillate products (e.g., naphtha, kerosene, jet fuel, gasoline, oil, and diesel) and correspondingly high yields of sulfur and high-viscosity residues (e.g., asphalt and coke) with metals concentrated in them.

Even under thermal stimulation, heavy oil production ranges only from about 5 to 100 barrels per day per well. This can be compared with recoveries in giant conventional oil fields on the order of 10,000 barrels per day per well. Consequently, even though heavy oil fields are exploited at much slower rates than conventional fields, many more wells are still required. This considerably increases development costs.