Canada’s Oil Sands – The Reality Building Trades – 2011 Canadian Legislative Conference Ottawa - May 4, 2011 Dave Collyer,...
The Global Energy Context <ul><li>Significant energy demand growth: </li></ul><ul><ul><li>Population, standards of living ...
Global Crude Oil Reserves by Country Source: Oil & Gas Journal Dec. 2010 Includes 170 billion barrels of oil sands reserve...
Oil Sands Deposits & Projects In Situ Projects Mining Projects In Situ Projects Mining Projects Fort McMurray Cold Lake Fo...
Oil Sands Production Methods Photo: ConocoPhillips - Surmont Schematic: Devon - Jackfish Drilling (80% Resource, 97% Land)...
W. Canadian Oil Sands & Conventional Oil Production Outlook May 2010 2011 Oil Sands Capital ~ $15B
Access to Current and New Oil Markets Canadian & U.S. Crude Oil Pipeline Proposals
Canada’s Share of U.S. Imports –  Crude Oil & Petroleum Products  Source: EIA Jan-Dec 2010
Asian Market Potential for  Canadian Oil  Sands Production China Persian Gulf  Japan Taiwan ~ 8,600 N Miles ~ 4,500 N Mile...
Canadian & U.S. Jobs & Economic Benefits  <ul><li>Construction & operations </li></ul><ul><ul><li>Upstream </li></ul></ul>...
Incremental U.S. Employment from  Canadian Oil Sands by State  2011-2025 16 - 30 Over 40 10 - 15 Under 10 Thousand Person-...
Best Goal for Oil Sands Which is the best goal when it comes to the oil sands?
Reputation / Social License & Oil Sands <ul><li>Industry Reputation / Social License = </li></ul><ul><li>Performance  +  C...
ADVERTISING EDUCATION – ENERGY LITERACY Environmental & Social Performance  <ul><li>People </li></ul><ul><li>Air </li></ul...
Oil Sands Water Use & Quality <ul><li>Mining </li></ul><ul><ul><li>Currently use 0.5 per cent of the annual flow of the At...
North American GHG Emissions (2009):   Coal-Fired Power and Oil Sands 15 megatonnes 50 megatonnes 100 megatonnes FL GA TX ...
Reducing Greenhouse Gas Emissions <ul><li>Energy Efficiency </li></ul><ul><ul><li>Using less energy input </li></ul></ul><...
Royal Society of Canada Report Environmental & Health Impacts of Canada’s Oil Sands Industry <ul><li>Science-based, indepe...
2010 CAPP OIL SANDS CAMPAIGN
Advertising - Getting the Word Out Joy Romero – Canadian Natural Resources Limited http:// www.youtube.com/v/ShqPwDWAuYM
Advertising - Getting the Word Out Steve Gaudet – Syncrude Canada http:// www.youtube.com/v/iXtHFPGXjlY
2010 Oil Sands Dialogues <ul><li>13 OS CEOs, 8 cities, 160 participants </li></ul><ul><li>Strong Building Trades represent...
“ The Ask” <ul><li>Enable oil sands related projects in Canada & U.S. </li></ul><ul><li>Encourage a North American approac...
Oil Sands - #1 Employer of Building Trades in Canada Jobs, Economic Growth & Responsible Environmental Social / Performance
 
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May 4, 2011 - Canada's Oil Sands - The Reality

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Canada's Oil Sands - The Reality Presentation by David Collyer, CAPP President to Building Trades - 2011 Canadian Legislative Conference, Ottawa

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May 4, 2011 - Canada's Oil Sands - The Reality

  1. 1. Canada’s Oil Sands – The Reality Building Trades – 2011 Canadian Legislative Conference Ottawa - May 4, 2011 Dave Collyer, President
  2. 2. The Global Energy Context <ul><li>Significant energy demand growth: </li></ul><ul><ul><li>Population, standards of living </li></ul></ul><ul><li>Need all forms of energy: </li></ul><ul><ul><li>Increasing role for renewables </li></ul></ul><ul><ul><li>Continuing reliance on hydrocarbons </li></ul></ul><ul><ul><li>Increasing role for non- conventional crude oil & natural gas </li></ul></ul><ul><li>Technology is a key lever for sustainable growth </li></ul><ul><ul><li>Production </li></ul></ul><ul><ul><li>Cost competitiveness </li></ul></ul><ul><ul><li>Environmental performance </li></ul></ul>Current Policies Scenario Global Primary Energy Demand
  3. 3. Global Crude Oil Reserves by Country Source: Oil & Gas Journal Dec. 2010 Includes 170 billion barrels of oil sands reserves State owned 78% Accessible Canada’s Oil Sands World Oil Reserves Other Accessible Reserves 52% 48% Accessible Oil Reserves
  4. 4. Oil Sands Deposits & Projects In Situ Projects Mining Projects In Situ Projects Mining Projects Fort McMurray Cold Lake Fort Hills Horizon Joslyn Creek Syncrude Suncor Muskeg River Albian Dover MacKay River Firebag Hangingstone Long Lake Surmont Christina Lake (ECA) Foster Creek Wolf Lake/Primrose Hilda Lake Cold Lake Tucker Lake Jackfish Kearl Lake Jackpine Peace River Peace River Seal Peace River Peace River Seal Northern Lights White Sands
  5. 5. Oil Sands Production Methods Photo: ConocoPhillips - Surmont Schematic: Devon - Jackfish Drilling (80% Resource, 97% Land) Mining (20% Resource, 3% Land)
  6. 6. W. Canadian Oil Sands & Conventional Oil Production Outlook May 2010 2011 Oil Sands Capital ~ $15B
  7. 7. Access to Current and New Oil Markets Canadian & U.S. Crude Oil Pipeline Proposals
  8. 8. Canada’s Share of U.S. Imports – Crude Oil & Petroleum Products Source: EIA Jan-Dec 2010
  9. 9. Asian Market Potential for Canadian Oil Sands Production China Persian Gulf Japan Taiwan ~ 8,600 N Miles ~ 4,500 N Miles Prince Rupert/Kitimat Jose/ La Cruz Los Angeles Japan Taiwan Target Markets ~ 5,400 N Miles 1,400 N Miles Far East U.S West Coast • • • • Japan Taiwan Korea • • SantaCruz • • 1,790 Competitive travel distances for Canadian supply to both markets Source: Enbridge Pipelines Prince Rupert/Kitimat Los Angeles Jose/ La Cruz 3 , 8 4 0
  10. 10. Canadian & U.S. Jobs & Economic Benefits <ul><li>Construction & operations </li></ul><ul><ul><li>Upstream </li></ul></ul><ul><ul><li>Pipelines </li></ul></ul><ul><ul><li>Upgraders & refineries </li></ul></ul><ul><li>Employment </li></ul><ul><ul><li>Direct & indirect </li></ul></ul><ul><li>Supply of goods and services </li></ul><ul><li>Royalties & taxes </li></ul><ul><li>CERI economic benefits study (Canada only over 25 years) </li></ul><ul><ul><li>Economic impact generated $1.7 trillion </li></ul></ul><ul><ul><li>Employment 11.4 million person-years </li></ul></ul><ul><ul><li>Federal & provincial tax $300 billion </li></ul></ul>
  11. 11. Incremental U.S. Employment from Canadian Oil Sands by State 2011-2025 16 - 30 Over 40 10 - 15 Under 10 Thousand Person-Years Source: Canadian Energy Research Institute – April 2011 Preliminary Alaska Hawaii
  12. 12. Best Goal for Oil Sands Which is the best goal when it comes to the oil sands?
  13. 13. Reputation / Social License & Oil Sands <ul><li>Industry Reputation / Social License = </li></ul><ul><li>Performance + Communications </li></ul><ul><li>“ 3E” policy framework </li></ul><ul><li>Robust regional planning: </li></ul><ul><ul><li>System-wide metrics </li></ul></ul><ul><ul><li>Effective monitoring </li></ul></ul><ul><ul><li>Transparent data </li></ul></ul><ul><ul><li>3 rd party validation </li></ul></ul><ul><li>World class regulation </li></ul><ul><li>Technology & innovation </li></ul><ul><li>Collaboration </li></ul><ul><li>Proactive </li></ul><ul><li>Transparent </li></ul><ul><li>Verifiable </li></ul><ul><li>Visible leadership </li></ul><ul><li>Broad portfolio: </li></ul><ul><ul><li>mainstream </li></ul></ul><ul><ul><li>social media </li></ul></ul><ul><ul><li>directly & via 3 rd parties </li></ul></ul><ul><ul><li>Canada, U.S., Europe, Asia </li></ul></ul>
  14. 14. ADVERTISING EDUCATION – ENERGY LITERACY Environmental & Social Performance <ul><li>People </li></ul><ul><li>Air </li></ul><ul><li>Water </li></ul><ul><li>Land </li></ul>Guiding Principles for Oil Sands Development
  15. 15. Oil Sands Water Use & Quality <ul><li>Mining </li></ul><ul><ul><li>Currently use 0.5 per cent of the annual flow of the Athabasca river (1/3 of City of Toronto water use). </li></ul></ul><ul><ul><li>80-90% recycle. </li></ul></ul><ul><ul><li>Withdrawals restricted during low flow periods (on-site water storage). </li></ul></ul><ul><ul><li>“ No impact on Athabasca water quality/ecosystem and no evidence of impact on human health in downstream communities” (Royal Society, 2010 report). </li></ul></ul><ul><li>Drillable (Insitu) </li></ul><ul><li>90-95% recycle. </li></ul><ul><li>No water from Athabasca River. </li></ul><ul><li>Shift to using non-potable (saline) from sub-surface aquifers. </li></ul><ul><li>New projects are using 100% saline for steam. </li></ul>
  16. 16. North American GHG Emissions (2009): Coal-Fired Power and Oil Sands 15 megatonnes 50 megatonnes 100 megatonnes FL GA TX NC MI AL MO KY IN OH NE NM ND CO SC KS IA TN WV WY VA MN UT OK WI AZ AR AK LA IL NV OR MT SD NJ NY NH MS Legend U.S. Coal fired power generating plants Canadian coal-fired power generating plants Canadian oil sands Sources: U.S. DOE/EIA & Environment Canada
  17. 17. Reducing Greenhouse Gas Emissions <ul><li>Energy Efficiency </li></ul><ul><ul><li>Using less energy input </li></ul></ul><ul><ul><li>Reducing energy waste/losses </li></ul></ul><ul><ul><li>Capturing waste heat </li></ul></ul><ul><ul><li>Cogeneration power/steam </li></ul></ul><ul><li>Improved recovery processes </li></ul><ul><ul><li>Lower temperature extraction </li></ul></ul><ul><ul><li>Additives to reduce use of both water and energy (steam) </li></ul></ul><ul><ul><li>Use of electricity rather than steam </li></ul></ul><ul><ul><li>Underground combustion rather than steam </li></ul></ul><ul><li>Carbon capture & sequestration </li></ul><ul><ul><li>Most effective at upgraders </li></ul></ul>Oil Sands GHG Emissions/bbl 39% g co2 eq./mj 1990 2008
  18. 18. Royal Society of Canada Report Environmental & Health Impacts of Canada’s Oil Sands Industry <ul><li>Science-based, independent analysis of the environmental aspects of Canada’s oil sands </li></ul><ul><li>Addresses many of the issues and perceptions of oil sands development: </li></ul><ul><ul><li>Reclamation is not keeping pace, but sustainable reclamation is achievable </li></ul></ul><ul><ul><li>Water use does not threaten viability of the Athabasca River </li></ul></ul><ul><ul><li>No impact on Athabasca water quality/ecosystem and no evidence of impact on human health in downstream communities </li></ul></ul><ul><ul><li>Tailings technologies are emerging, but tailings inventory is growing </li></ul></ul><ul><ul><li>GHG emissions per barrel are reducing but growing production creates a challenge in meeting international commitments </li></ul></ul><ul><ul><li>Minimal impacts on regional air quality </li></ul></ul>December 2010
  19. 19. 2010 CAPP OIL SANDS CAMPAIGN
  20. 20. Advertising - Getting the Word Out Joy Romero – Canadian Natural Resources Limited http:// www.youtube.com/v/ShqPwDWAuYM
  21. 21. Advertising - Getting the Word Out Steve Gaudet – Syncrude Canada http:// www.youtube.com/v/iXtHFPGXjlY
  22. 22. 2010 Oil Sands Dialogues <ul><li>13 OS CEOs, 8 cities, 160 participants </li></ul><ul><li>Strong Building Trades representation in Canada & U.S. </li></ul><ul><li>Input exceeded expectations </li></ul><ul><li>Comprehensive report – “What We Heard”, “Our Response” </li></ul><ul><li>Strong industry support for labour mobility and training </li></ul>
  23. 23. “ The Ask” <ul><li>Enable oil sands related projects in Canada & U.S. </li></ul><ul><li>Encourage a North American approach to energy strategy, addressing security & reliability </li></ul><ul><li>Encourage & support balanced policy & regulation: </li></ul><ul><ul><li>Labor mobility & training </li></ul></ul><ul><ul><li>Open borders for trade </li></ul></ul><ul><ul><li>Non-discriminatory policy toward Canadian oil sands supply sources </li></ul></ul><ul><ul><li>Avoid unnecessary regulatory “creep” </li></ul></ul><ul><ul><li>Equitable approach to climate policy </li></ul></ul><ul><ul><li>Technology development & deployment </li></ul></ul><ul><li>Assist in communicating a balanced, pragmatic, fact-based message regarding Canada’s oil sands </li></ul><ul><li>Rebut myths & misrepresentations about oil sands </li></ul>
  24. 24. Oil Sands - #1 Employer of Building Trades in Canada Jobs, Economic Growth & Responsible Environmental Social / Performance

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