1. Improving Energy Efficiency
Upstream Oil & Gas
Angelo Mangatal, Senior Industry Officer
Fuel Gas Committee
Calgary Alberta April 7, 2009

2. UPSTREAM OIL & GAS
Over $ 1 Billion per year for the Oil &
Gas industry
– 15% reduction in energy use = $ 780
million/yr
– 45% reduction in other emissions = $220
million/yr**
GHG emissions reductions = 29 Mt
CO2e/yr
Excludes potential energy revenue or
savings from cogeneration, Best
Management Practices and other
sources in the industry
• Sources: NRCan, Clearstone Engineering,
AEUB ** Alberta only - Prepared by PTAC -
Petroleum Technology Alliance Canada www.ptac.org

3. Obstacles to
Energy Efficiency
 Energy Efficiency isn’t a major business focus
 Energy losses are not measured
 Resources are stretched
 Risk – new technology and/or systems
can appear to hinder Oil and Gas production
What Can Companies Do? Where To Start?

4. 4
Making Canada more
Energy Efficient
ecoENERGY Retrofit for Homes
ecoENERGY for Houses & Buildings
ecoENERGY for Industry CIPEC
ecoENERGY Retrofit
Small buildings and industry
Federal Budget Highlights
Council of Energy Ministers

5. Office of Energy Efficiency
(OEE) & CIPEC
 Office of Energy Efficiency
(OEE) - conserves energy, save
money and contribute to a
healthier environment.
 Canadian Industry Program for
Energy Conservation (CIPEC)
 Works with all industry sectors to
encourage investment ,
development and new methods for
industrial processes that are more
energy efficient.

6. The CIPEC Portfolio
Tools
CanMost
Boiler Efficiency Calculator
Energy Savings Toolbox
(Audit Manual and Tool)
RETScreen Int’l
• Fans, and more
Training
Dollars to $ense
 (D2$ workshops)
Qualified Specialists
Customized
Workshops
Incentives & Assessments
ecoEnergy Retrofit
Incentive
Process Integration
 (PI) Study Incentive
Computational
 Fluid Dynamic
(CFD) Study
Incentives
Information
Sector Task Forces
Tip Sheets
Case studies
Source Books
Website
Heads Up CIPEC

7. Energy Savings Toolbox
 Provides a step-by-step methodology to
help industry identify and capitalize on
energy savings.
 Offers a detailed reference for
understanding and managing energy use
in every phase of an operation, from
designing and conducting an energy audit
to carrying out cost-benefit analyses.
 Includes an extensive technical
supplement with spreadsheet tools for
costing, analysis and other related
calculations.
http://oee.nrcan.gc.ca/industrial/technical-info/index.cfm
“With the Energy Savings
Toolbox, Canadian
industry now has a start-
to-finish guide to
managing energy
consumption."

8. Our Suggested Approach
Action
RESULTS
Raise Awareness
Build
Capacity
Identify
Opportunities

9. CIPEC ENERGY 2009
Conference
November 2009 - look for updates TBA
“This is the premier industrial energy
efficiency conference in Canada”
“It’s a unique opportunity for energy
efficiency industry leaders to come
together, share best practices, network
and learn from one another.”

10. 10
CIPEC/2020 and Beyond
 Reduce GHG by 20% of 2006 levels by 2020
 EE Potential Upstream Oil and Gas 2009
Why do you need data?
Data can justify:
Ideas - Policy – Programs – Initiatives
Company direction
Government direction
Where to find data?
Government: i.e. National Energy Use Database (NEUD)
Industry associations: CAPP, PTAC, CEPA

11. OEE Leading on EE
Issues
 CIPEC is supporting various industry initiatives (e.g.
Energy Efficiency Potential Upstream Oil and Gas
Industry Sector
 Shaping global energy standards - to complement ISO
9000 and ISO 14000
 Other gov’t departments: Budget 2009 eliminates tariffs
on a range of machinery and equipment
 Class 29 provides 50% straight line ACCA for manufacturing and processing
equipment until 2010
 Class 43.1 and 43.2 provide 30% or 50% ACCA (declining balance) for equipment
used in systems that generate electricity and/or produce heat for industrial
processes: i.e. recovering and re-using thermal waste; cogeneration, etc.
 Canadian Renewable & Conservation Expense (CRCE)
 Covers intangible (soft) costs for Class 43.1/43.2 projects
 Can be fully expensed in the year incurred or carried forward.

12. Where to Start?
 Become a CIPEC
Leader!
Go to:
www.CIPEC.gc.ca

13. INDUSTRY FEEDBACK
 NRCan Minister Raitt receptive to industry
Small Explorer's and Producers Association of
Canada(SEPA) – submissions to Department of
Finance
Cement Association – Meeting with the DM
re: Bio-fuels incentives, etc.
Slipstream CA (PTAC)

14. Contact Information:
Angelo Mangatal
Telephone 613-868-0104
amangata@NRCan.gc.ca
http://oee.nrcan.gc.ca/industrial
Thank you!

15. More on Budget 2009 :
e.g. Tax Treatments
 Class 29, 43.1/43.2 of the Income Tax Act
 Class 29 provides 50% straight line ACCA for
manufacturing and processing equipment until 2010
 Class 43.1 and 43.2 provide 30% or 50% ACCA
(declining balance) for equipment used in systems that
generate electricity and/or produce heat for industrial
processes by:
 recovering and re-using thermal waste
 using specified waste-fuels
 using cogeneration
 Using renewable sources, including solar, wind and small
hydro
 Canadian Renewable & Conservation Expense (CRCE)
 Covers intangible (soft) costs for Class 43.1/43.2 projects
 Can be fully expensed in the year incurred or carried
forward.

16. Dollars to $ense Workshops
 “Spot the Energy Savings Opportunities”
 “Energy Monitoring and Tracking”
 “Energy Master Plan”
 “Energy Efficiency Financing”
 BC Hydro- provides rebate to attendees
of NRCan workshops
Basic Energy
Efficiency Training
Customized workshops tailored to
companies and sectors
Training to Build Capacity

17.  Boiler Efficiency Calculator
evaluates boiler performance
 CanMOST software program
analyzes and compares the
efficiency of three-phase electric
motors; over 43,000 motors in the
database
 RETSCREEN assesses the
financial viability and risk for various
types of energy efficient and
renewable energy technologies
(RETScreen).
Energy Efficiency
Tools
NRCan downloadable software

18. 18
National Energy Use
Database (NEUD)
 Where does NEUD fit?
– Below is a segment of the departmental organization chart
 NEUD mission
– Improve knowledge & understanding of where & how energy is
used in all Canadian sectors
Natural Resources Canada
Office of Energy Efficiency
NEUD

19. Energy Efficient
Equipment Web Site
http://oee.nrcan.gc.ca/industrial/equipment/products/

20. ecoEnergy for Fleets
• Introduces fleets to
energy-efficient
practices that can
reduce fuel
consumption and
emissions through:
• Smart Driver Training
• Workshops
• Fuel Calculator
http://fleetsmart.nrcan.gc.ca/

21. Information &
Networking
 Sector Task Forces
 Employee Awareness Information
 Case Studies
 Best Practices and Benchmarking Guides
 Twice monthly newsletter – “Heads Up
CIPEC”
 Technical Videos
 Conferences and Awards
 Energy 2009 – Nov. 2009

22. Results:
$1 Million Saved
80,000 GJ Saved
Energy 2005
Energy Audit D2$ Workshop
Energy Audit
Heads-Up CIPEC
Customized
Workshops for
Staff
Combustion Analysis
Continuous Training
Linking the Pieces
Together
2005 2007
Awareness/Action
Example: Ivaco Rolling Mills