Apr 11 13, 2011 - Canada's oil sands - Partners in America's energy future
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Apr 11 13, 2011 - Canada's oil sands - Partners in America's energy future

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    Apr 11 13, 2011 - Canada's oil sands - Partners in America's energy future Apr 11 13, 2011 - Canada's oil sands - Partners in America's energy future Presentation Transcript

    • Canada’s Oil Sands Partners in America’s Energy FutureCanadian Association of Petroleum Producers
    • Canada’s Energy:Partners for America’s Future Jobs and Economic Growth  Creating jobs across North America  Robust economic relationships already established cross-border Energy Security  Currently the largest supplier of crude oil to the U.S. and growing  Largest supplier of natural gas to the U.S. Environmental Sustainability  GHG emissions, land and water  Technological advancements  Strong Government regulation 2
    • Two Methods of Oil Sands Recovery Drilling: 80% of reserves Mining: 20% of reservesPhoto: ConocoPhillips - Surmont 3 Schematic: Devon - Jackfish 3
    • Canada’s Oil Sands:Partners for American Economy• Our refinery is set up to process heavy crude, and 95 per cent of its feedstock is Canadian heavy crude, which includes oil sands oil. We probably couldn’t survive without it. Dexter Busby, Director Government and Regulatory Affairs Montana Refining Company, Inc.• “The oil sands are a national treasure for Canada and the U.S. The resource is secure and comes from a friendly neighbor. In addition, much of the U.S. dollars spent on Canadian oil come back to America in trade.” U.S. Senator Lindsey Graham 4
    • US Jobs and Economic Impacts from Canadian Oil Sands • 290,000 new US jobs  Increased demand for U.S. goods and services will result in the creation of an incremental 290,000 jobs from 2011 – 2025 • Output up by $45 billion/year  On average, U.S. output of goods and services will increase by $45 billion/year from 2011 - 2025 due to increased demand from oil sands activity • US GDP growth from oil sands  Demand for US goods and services will generate an incremental $5.8 billion in 2015 to US GDP, $12.9 billion in 2020 and $26.6 billion 2025.Source: Canadian Energy Research Institute – April 2011 Preliminary 5
    • Incremental US Jobs from Canadian Oil Sandsby State 2011-2025AlaskaHawaii Thousand Person-Years Over 40 16 - 30 10 - 15 Under 10 6 Source: Canadian Energy Research Institute – April 2011 Preliminary
    • Canada’s Oil Sands:Partners in the American Economy 7
    • Canada’s Oil Sands:Partners for American Energy Security And when it comes to the oil we import from other nations, we can partner with neighbors like Canada, Mexico, and Brazil, which recently discovered significant new oil reserves, and with whom we can share American technology and know-how. President Barack Obama 8
    • Assessing Canada as a Supplier to the U.S.Thinking about Canada as a source of oil to meet America’s needs, how would yourate Canada on these criteria? Very good Good Bad Very bad An ally that America can trust 58% 37% 1% A country with a good record when it comes to 49% 43% 2% 1% human rights A country that offers good social and living 48% 44% 2% 3% conditions for its peopleA country that respects the environment and works 43% 45% 2% to limit environmental impacts of development A country with a democratic government that 42% 45% 4% 2% operates with clear laws A country without the kind of political risks that 42% 37% 7% 4% could disrupt the flow of oil A country that buys lots of American goods and 31% 49% 7% 3% services and helps create jobs for US workers 0% 20% 40% 60% 80% 100%Harris Interactive – April 2011 9
    • Surrounding Attitudes Please tell me whether you strongly agree, agree, disagree or strongly disagree with each of the following statements? Strongly agree Agree Disagree Strongly disagree Unless American families and businesses stop using oil and gas, we need companies to continue 31% 55% 7% 3% developing resources like Canadas oil sands US government policies should support the use of 27% 58% 7% 2% oil from Canadas oil sands Pipelines are probably the best way to move Canadas oil to US markets, compared to the 25% 52% 10% 1% alternatives Oil from Canadas oil sands or anywhere else is developed because American families and 21% 57% 12% 3% businesses use it in our everyday lives 0% 20% 40% 60% 80% 100%Harris Interactive – April 2011 10
    • Preferred Use of Canadian Oil in FutureIf it were up to you, and America continued to need to import some oil, would you liketo see America import a lot more of its imported oil from Canada, a little more, aboutthe same amount as it does today, a little less, or a lot less? A lot more A little more About the same A little less A lot less National 56% 25% 9% 3% 2% 0% 20% 40% 60% 80% 100%Harris Interactive – April 2011 11
    • The Global Energy Context• Significant energy demand growth:  Population, standards of living• Need all forms of energy:  Increasing role for renewables  Continuing reliance on hydrocarbons  Increasing role for non- conventional crude oil & natural gas• Technology is a key lever for sustainable growth  Production  Cost competitiveness  Environmental performance Current Policies Scenario 12
    • Global Crude Oil Reserves by Country ls rre ba World Oil li on rves b i l es e Accessible 300 Reserves 70 s r s 1 and 260 Oil Reserves e lud oil s 250 Inc of 211 Canada’s State owned Oil Sands 52% 175 or controlled 200 78% Accessiblebillion barrels Other 48% 137 Accessible 150 Reserves 115 102 92 100 60 46 50 37 30 25 20 19 0 sia ria aq an a na da a an i ar t a ab es ai bi by el Ir Ir at i s na ge t w Ch ra at zu Dh hs Ru Li Q Ku Ni iA Ca St ak ne u ud d zh Ab Ve ite Sa Ka Un Source: Oil & Gas Journal Dec. 2010 13
    • Canada’s Share of U.S. Imports –Crude Oil & Petroleum Products % Saudi Arabia 70% % Mexico % Venezuela 60% % Canada 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: EIA Jan-Dec 2010 14
    • Canadian Oil Sands and ConventionalProduction 15May 2010
    • U.S. Demand for Western Canadian CrudeOil – 2009 vs. 2015 Potential 16
    • Canadian & U.S. Crude Oil PipelineProposals 17
    • North American GHG Emissions (2009)for Coal-fired Power and Oil Sands AK MT ND MN OR WY SD WI NH MI NY NV NE IA UT CO IN OH NJ KS MO VA KY WV IL AZ NC NM OK TN Canadian oil sands ARLegend SC Canadian coal-fired power 100 megatonnes AL GA generating plants TX 50 megatonnes MS LA U.S. Coal fired power 15 megatonnes FL generating plants 18Sources: U.S. DOE/EIA & Environment Canada
    • Full Cycle GHG Emissions GHG Emissions from 120 Production and Refining GHG Emissions from Gasoline Consumption 100 105 80 106 104 114 98 102 102 102 107 g CO2e/MJ gasoline 60 40 20 0 Saudi Mexico Iraq Venezuela Nigeria US Gulf California Oil Sands Arabia Coast Thermal Wtd. AvgSource: Jacobs Consultancy, Life Cycle Assessment Comparison for North America and Imported 19Crudes, June 2009
    • Reducing Greenhouse Gas Emissions 25 Oil Sands GHG Emissions/bbl• Reducing GHG Emissions 20  Using less energy input 39% g co2 eq./mj  Reducing energy waste/losses 15  Capturing waste heat 10  Cogeneration power/steam  Use energy more efficiently 5 0 1990 2008• Capturing CO2  Capture technologies • Upgraders, hydrogen plants  Transportation  Storage and Sequestration 20
    • Water Mining • Drillable (Insitu)  2-4 barrels of water per barrel of  0.25-0.5 barrels of water per oil with 80-90% recycle barrel of oil with 90-95% recycle  No water from Athabasca River  Currently use 0.5 per cent of the annual flow of the Athabasca river  Shift to using saline water from sub-surface aquifers  To protect during low flow periods  Newer projects are using 100% withdrawals are capped saline water for steam • On-site water storage Equivalent to 1/3 of City of Toronto water use to produce ½ of Canada’s oil• Enhanced monitoring systems  Recent government reviews and increased transparency 21
    • Land Use and Reclamation in theBoreal Forest 662 662 16 22
    • Mining Reclamation Underway 23
    • Technology Solutions - Energy Efficiency, Greater Recovery and Less Water• Low energy extraction  35ºC instead of 80ºC = 1/3 less energy  Working on lower temperatures• Underground combustion rather than Syncrude Low Energy Extraction – Aurora Mine steam  Petrobank Whitesands – THAI process• Additives to reduce the need for both water and energy (steam)  LASER (Imperial), SAP (Cenovus), N-Solv  SC-SAGD (Laricina), SOLVE (Statoil/PTRC) Petrobank THAI process• Electricity instead of steam to warm the heavy oil underground  ET-Energy, Shell Solvent/steam processes (Laricina diagram) 24
    • Talking with the Public about the Oil Sands www.capp.ca 25
    • Canada’s Energy:Partners for America’s Future Jobs and Economic Growth  Creating jobs across North America  Robust economic relationships already established cross-border Energy Security  Currently the largest supplier of crude oil to the U.S. and growing  Largest supplier of natural gas to the U.S. Environmental Sustainability  GHG emissions, land and water  Technological advancements  Strong Government regulation 26