Answer:
Yes, however it takes 4 barrels of water to produce 1 barrel of oil from the tar sand. (Sand and bitumen mix)
Note the additional info posted below.
The product is know as dirty oil which means it's incredibly costly to produce and is much worse for the environment than a more pure oil.
Oil from the tar sands are essentially the leftover oil we have not yet overexploited.
The heavy usage of water is required in the steam extraction method, used for very deep deposits of bitumen oil, used in asphalt.
However, open pit mining, the other extraction process as in the Athabaska Valley of Northern Alberta, Canada, requires virtually no water in the extraction process.