Feb 2011 - European oil sands presentation

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Feb 2011 - European oil sands presentation

  1. 1. Canada’s Oil Sands
  2. 2. Canada’s Oil & Natural Gas• Energy Security  Shifting Supply and Demand • the world is counting on Canada’s oil, gas is abundant  Access to existing and new markets• Environment  Energy mix and conservation  Local/regional – water use/quality, land use, air quality, etc.  Global – greenhouse gas emissions policy• Jobs and Economic Growth  Creating jobs across Canada and North America
  3. 3. Global Primary Energy Demand• 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
  4. 4. 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 e s 1 and Oil Reserves 250 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 50 37 30 25 20 19 0 n q sia na ya ria r da ait I ra I ra ta bia i ela n ab Li b i es ta s ge na Qa Ch w Ru ra zu Dh at Ku hs Ni Ca iA St ne ak u ud Ab Ve zh d ite Sa Ka Un Source: Oil & Gas Journal Dec. 2010
  5. 5. Growth Case - Western Canadian Oil Production
  6. 6. Industry Capital Spending Cdn $billions Oil & Gas Investment Spending: 2009: $34 billion 2010: $42 billion (estimate) 2011: $44 billion (forecast) Northern Canada 2009 2010E 2011F $0.2 $0.5 $0.3 Oil Sands 2009 2010E 2011F $11 $13 $15 East Coast Offshore Western Canada 2009 2010E 2011F 2009 2010E 2011F $1.7 $2.5 $3.0 $20 $26 $26Note:Excludes spending mergers & acquisitions
  7. 7. Two Methods of Oil Sands Reserves: 80% Drilling and 20% Mining Land: 97% Drilling and 3% Mining Drilling MiningPhoto: ConocoPhillips - Surmont Schematic: Devon - Jackfish
  8. 8. Access to Current and New Oil Markets Canadian & U.S. Crude Oil Pipeline Proposals
  9. 9. 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
  10. 10. Oil Sands Tailings – Mining• A mixture of water, clay, sands and residual bitumen  Used to settle solids and recycle water - 80%+ recycle ratio• Research to increase recycle, reduce pond size  Consolidated tailings  CO2 treatment (CNRL)  Thickeners, Paste/Dry tailings  Tailings Reduction (Suncor) Suncor Pond 1  Atmospheric Fines Drying (Shell)  Centrifuge (Syncrude)• First tailings pond (Suncor) surface reclamation in 2010• Industry Tailings Collaborative  Accelerate new technology implementation September 2010
  11. 11. Oil Sands Water Use Mining • Drillable (Insitu)  2-4 barrels of water per barrel  0.25-0.5 barrels of water per of 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  Shift to using non-potable Athabasca river (saline) sub-surface aquifers  New projects are using 100%  1/3 of City of Toronto water use saline for steam  To protect during low flow periods government restrictions are in place  On-site water storage
  12. 12. Water Quality and Monitoring• Federal Oil Sands Advisory Panel on Water Monitoring (Dec 2010)  Current monitoring system not “first-class state-of-the-art”  A universal interest to achieve responsible development  Significant amount of research, monitoring and environmental assessment  Workable and successful frameworks demonstrated• Alberta Water Monitoring Data Review Committee (Feb 2011)  Examine monitoring data and methodology of both government and academic research findings• Provincial Environmental Monitoring System (June 2011)  Panel of independent experts  World-class environmental monitoring, evaluation, and reporting for Alberta’s oil sands and entire province
  13. 13. Land Use and Reclamation 662 662
  14. 14. Reclamation and Restoration
  15. 15. Global Energy Related 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  5% of Canada’s GHG emissions
  16. 16. Greenhouse Gas Emissions – Canada & Europe Oil sands 5%Legend 1201+ teragram 801-1200 teragram 401-800 teragram Source: UNFCC & EC 0-400 teragram http://maps.unfccc.int/di/map/
  17. 17. 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 Crudes, June 2009
  18. 18. Carbon Price – Europe & Alberta Settlement Price (Euros/Tonnes) Alberta Carbon Price CDN $15/tonneSource: ICE Futures Report Monthly Utilities Report & CAPP
  19. 19. 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  CO2 capture technologies • Upgraders, hydrogen plants 0 1990 2008
  20. 20. Royal Society of CanadaEnvironmental & Health Impacts of Canada’s Oil Sands Industry• Science based, independent analysis of the environmental aspects of Canada’s oil sands• Addresses many of the issues and perceptions of oil sands development  Reclamation is not keeping pace but sustainable reclamation is achievable  Water use does not threaten viability of the Athabasca River  No impact on Athabasca water quality  Tailings technologies are emerging but tailings inventory is growing  GHG emissions per barrel are reducing but growing production creates a challenge in meeting international commitments  Minimal impacts on regional air quality December 2010
  21. 21. Oil Sands Information• Information/Education  English, French, Norwegian, and German  Information on environment, economics and energy  Real examples of technology• Come See For Yourself videos  CAPP website  YouTube
  22. 22. Responsible Canadian Energy• Oil Sands Report 2010  Principles & Performance  Measurement & Reporting • Safety and well-being • Water Management • Air Quality • Greenhouse Gas Emissions • Land use/reclamation  Transparency
  23. 23. 2010 Advertising Campaign
  24. 24. Background Slides
  25. 25. Resources to Reserves – Production Cost Curve (including a carbon tax of $50 per tonne CO2 equiv. emissions) 150 140 All 130 Deep 120 WaterProduction cost (2008 USD) 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 Available in billion barrels OECD/IEA 2009
  26. 26. Technology SolutionsEnergy Efficiency• Low energy extraction  35ºC instead of 80ºC = 1/3 less energy• Underground combustion rather than steam  Petrobank Whitesands – THAI process Syncrude Low Energy Extraction – Aurora Mine• Additives to reduce the need for both water and energy (steam)  LASER (Imperial), SAP (Cenovus), N-Solv  SC-SAGD (Laricina), SOLVE (Statoil/PTRC)• Electricity instead of steam to warm the heavy oil underground  ET-Energy, Shell Petrobank THAI processCarbon Capture and Storage• Most effective at upgraders/hydrogen plants  Shell Quest in development phase Solvent/steam processes (Laricina diagram)

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