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Canada’sOil & Natural Gas     Greg Stringham       March 2011
Global Energy Demand continues to grow•   Significant energy demand    growth:      Population, standards of living•   Ne...
Energy Demand in China & North America               4500               4000     North America                        Chin...
Canada’s Oil & Gas Resource Profile   Canada:   • 3rd largest in global oil reserves   • 3rd largest natural gas producer ...
Canada’s Oil & Natural Gas IndustryTop 15 Canadian Producers  Canadian Industry = 500 producer companies and 2,500 service...
International Companies Active in Canada   United States             Asia              Europe    Middle East  Apache Canad...
Canada’s Crude Oil
Global Crude Oil Reserves by Country                                                                                   ls ...
Canada’s Oil Sands
Oil Sands Projects in Three Deposits                                                                                      ...
Two Methods of Oil Sands Recovery   Reserves: 80% Drilling and 20% Mining   Land: 97% Drilling and 3% Mining              ...
Canadian Oil Sands and Conventional ProductionMay 2010
Resources to Reserves – Production Costs                             (including a carbon tax of $50 per tonne CO2 equiv. e...
Canadian & U.S. Crude Oil Pipeline Proposals
Potential Tanker Markets forCanadian Oil Sands Production                                                                 ...
Exports can be a variety of products    Heavy Oil           Light Upgraded Oil   Petroleum Products
Access to the West Coast (offshore markets)Existing• Transmountain shipments  over the dock    YTD 2010 = 83,000 b/d    ...
Global Energy Related GHG Emissions        Global Emissions                                                              C...
Responsible Environmental Development                                                          25                         ...
Canada’s Natural Gas
Natural Gas Resources Major Changes – New Shale Gas• Shale gas  supply a game-  changer• Technology  breakthroughs• New pr...
Canadian Natural Gas Resource is Growing                                                                                  ...
Canadian and U.S. Natural Gas Pipelines ProposedKitimat LNG    Project                                      TransCanada   ...
Kitimat Liquefied Natural Gas Project      British ColumbiaSource: Kitimat LNG
Total Canadian Natural Gas Production   C$5.50 price assumption       20       18       16       14       12         North...
Canada’s Equipment and Service Providers• Canada has a strong oil and natural gas  equipment and oil field services sector...
Canada’s Oil & Natural Gas• Providing Energy Security    Safe, secure and reliable energy• Ensuring Environmental  Stewar...
Supplementary Slides
Oil Sands Transactions       2007 - 2010       Year        Buyer                     Seller                      Project  ...
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Transcript of "Mar 2011 canada's oil & natural gas - china cippe presentation"

  1. 1. Canada’sOil & Natural Gas Greg Stringham March 2011
  2. 2. Global Energy Demand continues to grow• 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• Environmental challenges• Technology is a key lever for sustainable growth Current Policies Scenario
  3. 3. Energy Demand in China & North America 4500 4000 North America China 3500 3000 2500 Mtoe 2000 1500 1000 500 0 1980 2000 2008 2020 2030 2035Source: IEA World Energy Outlook 2010 – Current Policies Scenario
  4. 4. Canada’s Oil & Gas Resource Profile Canada: • 3rd largest in global oil reserves • 3rd largest natural gas producer • 6th largest crude oil producer • 25% of all private Canadian investment • 25% of value of Canada’s Stock Exchange
  5. 5. Canada’s Oil & Natural Gas IndustryTop 15 Canadian Producers Canadian Industry = 500 producer companies and 2,500 service providers Company Production – boe/d 1. Canadian Natural Resources 543,000 2. Suncor Energy 484,000 3. ExxonMobil (incl. Imperial Oil) 430,000 4. Husky Oil 305,000 5. ConocoPhillips 289,000 Canada’s Oil & Natural Gas Industry 6. Cenovus Energy 257,000 7. Encana Corp. 232,000 8. Shell Canada 219,000 9. Devon Corp. 204,000 10. PennWest Energy 166,000 11. Talisman Energy 122,000 12. Canadian Oil Sands 108,000 13. Taqa North 100,000 14. Apache Canada 80,000 15. Pengrowth Corp. 75,000
  6. 6. International Companies Active in Canada United States Asia Europe Middle East Apache Canada China Investment BP TAQA North Corp. BP Canada JACOS (JAPEX) Shell Chevron Canada Korea Investment Statoil Corp. ConocoPhillips Korea National Oil Co. Total E&P Devon Canada PetroChina EOG Resources PTT Exploration & Canada Inc. Production (Thailand) ExxonMobil Sinopec Marathon Oil Murphy Oil
  7. 7. Canada’s Crude Oil
  8. 8. Global Crude Oil Reserves by Country ls rre 300 ba World Oil li on rves 260 b i l es e Reserves Accessible 70 s r 250 e s 1 and Oil Reserves lud oil s 211 Inc of Canada’s 175 State Oil Sands 52% 200 controlled 78% Accessiblebillion barrels Other 48% 137 Accessible 150 Reserves 115 102 92 100 60 46 37 50 30 25 20 19 0 n q sia na ya r I ra I ra ria da ta ait Li b i i ela bia s Ch n Qa ab ge na w Ru ta es Ku zu Dh Ni Ca ra hs at iA ne St ak u ud Ab Ve zh d ite Sa Ka Un Source: Oil & Gas Journal Dec. 2010
  9. 9. Canada’s Oil Sands
  10. 10. Oil Sands Projects in Three Deposits Kearl Fort Hills Lake Horizon Northern Lights Joslyn Creek Muskeg River Syncrude Albian Dover Firebag Peace River Suncor Jackpine MacKay River Fort Seal McMurray Surmont Peace River Hangingstone Christina Lake Long Lake (CVE) White Sands Jackfish Cold Lake Foster Hilda Lake Creek Wolf Lake/Primrose Cold Lake In Situ Projects Tucker Lake Mining Projects
  11. 11. Two Methods of Oil Sands Recovery Reserves: 80% Drilling and 20% Mining Land: 97% Drilling and 3% Mining Drilling MiningPhoto: ConocoPhillips - Surmont Schematic: Devon - Jackfish
  12. 12. Canadian Oil Sands and Conventional ProductionMay 2010
  13. 13. Resources to Reserves – Production Costs (including a carbon tax of $50 per tonne CO2 equiv. emissions) 150 140 All 130 DeepProduction cost (2008 USD) 120 Water Etha- 110 Bio- CTL nol 100 Oil diesel 90 Shales O GTL BTL 80 T Heavy Oil 70 H. Bitumen 60 C O E 50 2 O 40 E R Other O 30 MENA R Arctic Conv. oil 20 Already Conv. oil produced 10 0 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Resource available in billion barrels OECD/IEA 2009
  14. 14. Canadian & U.S. Crude Oil Pipeline Proposals
  15. 15. Potential Tanker Markets forCanadian Oil Sands Production • Prince Rupert/Kitimat Prince Rupert/Kitimat 0 3,84 1, 400 Miles Korea Japan ~ 4,500 N Miles China • • Japan • Los Angeles N Persian Gulf • Japan Los Angeles • Taiwan Taiwan Taiwan 1, 7 90 Jose/ Jose/ ~ 8,600 N Miles SantaCruz La Cruz La Cruz • • ~ 5,400 N Miles Far East Target Markets U.S West Coast Competitive travel distances for Canadian supply to both marketsSource: Enbridge Pipelines
  16. 16. Exports can be a variety of products Heavy Oil Light Upgraded Oil Petroleum Products
  17. 17. Access to the West Coast (offshore markets)Existing• Transmountain shipments over the dock  YTD 2010 = 83,000 b/d  Peak April 2010 = 143,000 b/dFuture• Transmountain  TMX2 – 80,000 b/d  TMX3 – 320,000 b/d  Northern Leg – 400,000 b/d• Enbridge  Gateway – 525,000 b/d  NEB application filed
  18. 18. Global Energy Related GHG Emissions Global Emissions Canada’s 2% Non-OECD Europe & OECD Europe Eurasia 15% 10% Conventional Oil & Gas Other Fossil Fuel* Production 12% Service Industries 5% Japan 8% 4% Oil Sands India Residential 5%China 5% 7%21% Canada Electricity Agriculture 16% 2% 10% Australia/New Zealand 2% Other Transportation Manufacturing & Heavy United States 21% 22% Industry 20% 15% GHG emissions from oil sands:  less than 1/1000th of global GHG emissions  39% reduction in intensity since 1990
  19. 19. Responsible Environmental Development 25 Oil Sands GHG Emissions/bbl• Reducing GHG Emissions 20  Using less energy input 39% g co2 eq./mj  Use energy more efficiently 15• Capturing CO2 10  Governments investing over $3 billion – partners with industry 5• Water 0 1990 2008  Increasing water recycle  Using saline water for steam• Land  New tailings technologies accelerate reclamation  Smaller footprint and faster reclamation
  20. 20. Canada’s Natural Gas
  21. 21. Natural Gas Resources Major Changes – New Shale Gas• Shale gas supply a game- changer• Technology breakthroughs• New producing regions• North America has a surplus of natural gas
  22. 22. Canadian Natural Gas Resource is Growing 2010 Produced 2000 Produced Remaining Remaining Shale/Tight/CBM 390 TCF* 70 years of supply 700 - 1300 TCF* 100+ years of supply *Estimates include Alberta’s 180 – 400 TCF • Technological advances have “unlocked” vast unconventional gas resources. *Estimated Recoverable Marketable Gas: Source: CSUG
  23. 23. Canadian and U.S. Natural Gas Pipelines ProposedKitimat LNG Project TransCanada Alberta Westcoast (NGTL) ANG/ Alliance Foothills TransCanada Transmission Mainline Northwest Foothills M&NE TQ&M PGT Great Northwest NorthernLakes Border IroquoisPNGTS PG&E Kern r c to CNG Algonquin River Trailblazer Ve ANR NGPL Panhandle Transwestern Texas SoCal ANR El Paso NGPL Eastern Transcontinental El Paso
  24. 24. Kitimat Liquefied Natural Gas Project British ColumbiaSource: Kitimat LNG
  25. 25. Total Canadian Natural Gas Production C$5.50 price assumption 20 18 16 14 12 NorthBcfd 10 Atlantic Shale 8 Tight 6 CBM Conventional 4 Solution Gas 2 0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
  26. 26. Canada’s Equipment and Service Providers• Canada has a strong oil and natural gas equipment and oil field services sector• Over 2500 companies  Providing drilling equipment and services • Drilling fluids, chemicals, drill bits, etc.  Production testing and well servicing  Pipe and coating manufacturers  Environmental and safety services  Consulting services• Strong technology and innovation focus  Increasing recovery, accessing new resources, lowering costs, lower environmental footprint and safe operations Photos: PSAC
  27. 27. Canada’s Oil & Natural Gas• Providing Energy Security  Safe, secure and reliable energy• Ensuring Environmental Stewardship  Stringent government regulations  Performance, Technology• Generating Economic Benefits  New jobs and businesses  Royalty and taxes for Governments
  28. 28. Supplementary Slides
  29. 29. Oil Sands Transactions 2007 - 2010 Year Buyer Seller Project Value $MM 2010 Korea Investment Corp OSUM $100 PTT Expl. & Prod. Statoil Canada 40% Kai Kos Dehseh $2,280 China Investment Corp. Penn West 45% Seal Project JV C$817 Sinopec ConocoPhillips 9% Syncrude $4650 BP p.l.c. Value Creation 75% Terre de Grace $900 Devon BP 50% Kirby $650 2009 Suncor/Petro-Canada Merger – (C$19.3 billion) Incl. oil sands assets Korean National Oil Co. Harvest Energy Incl. oil sands assets Petro China Investment Athabasca Oil Sands Corp. 60% MacKay River & Dover C$1900 Imperial/ExxonMobil UTS 50% Lease 421 $232 2008 Nexen OPTI Canada 15% Long Lake and Future $735 Occidental Petroleum Enerplus 15% Joslyn $500 Total Synenco Synenco $381 2007 BP Husky Sunrise JV $1163 Petro-Can/Teck Cominco UTS 10% Fort Hills $740 Marathon Western Oil Sands Company $6200 MEG Paramount Surmont $281 Statoil NAOSC Company $2000 Teck Cominco UTS 50% Lease 14 $177 Enerplus Kirby Oil Sands 90% of Company $158Note: US$ unless stated otherwise
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