Canadian oil sands Presentation 10 15-10

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Canadian oil sands Presentation 10 15-10

  1. 1. The Canadian Oil Sands: Ensuring the Energy, Environmental, & Economic needs of North America “How we produce and use energy is fundamental to our economic recovery, but also our security and our planet.” President Barack Obama, February 19, 2009 “We are a stable, reliable producer in a volatile, unpredictable world.” Prime Minister Stephen Harper, July 14, 2006
  2. 2. Canada’s GHG Policies Canada’s GHG Policies We are committed to advancing global action. • Canada has formally associated with the Copenhagen Accord • Submitted an economy-wide emissions reduction target for 2020 of 17% below 2005 levels • Aligns with target and base year of the United States • Committed to providing a fair share of quick-start funding for developing countries Ensuring • Canada also support the G8 partners’ goal of reducing Environmental Stewardship global emissions by at least 50% by 2050; and developed countries reducing GHG emissions by 80% or more by 2050 2
  3. 3. Canada’s GHG Policies We are taking aggressive action to achieve our objectives. • Energy Efficiency • Residential houses, buildings, transportation, integrated communities • Vehicle tailpipe CO2 emissions regulations • Fuel Diversity • Support for Next Generation Biofuels • Increased use of natural gas in transportation • Renewable fuels standards Ensuring Environmental • Greener energy system: Stewardship • Innovative new technologies such as geothermal and smart electrical grid • CCS demonstration projects in electricity and other sectors 3
  4. 4. Canada’s GHG Policies We are working with the U.S. to address these issues • Canada and the US will have to be leaders in clean energy to meet our GHG emissions objectives • Clean Energy Dialogue established in 2009: • Carbon Capture and Storage – cleaning fossil fuels • Electricity Sector – smart grid technologies • Research and Development – for next generation technologies Ensuring Environmental • Building on vehicles, we’re working with the U.S. on Stewardship compatible GHG regulatory regimes 4
  5. 5. Canada US Energy Trade (2008) Canada’s energy exports to the US = $122 billion Canadian exports satisfied 9% of total US demand Cross-border direct investment in energy – $90 billion 23M MWh 524 55M MWh 676 3629 Bcf MMb Bcf Providing Energy Security Electricity Crude Oil Natural Gas 1% 13% 15% % of US $3.8 Billion $61 Billion $33 Billion Consumption 5
  6. 6. Canada is your Largest and Most Secure Energy Supplier Canada is a strategic partner of the United States, supplying oil, natural gas, uranium and electricity • 91% of U.S. gas imports, and nearly 20% of U.S. consumption • 33% of U.S. uranium imports • 98% of U.S. electricity imports • 20% of U.S. imports of crude oil and petroleum products 6
  7. 7. Canada – Your Largest & Most Secure Russia Energy Supplier Angola* Algeria* U.S. Imports of crude oil Iraq* & petroleum products Nigeria* Venezuela* Providing Mexico Energy Security Saudi Arabia* Canada 0 500 1,000 1,500 2,000 2,500 thousand barrels per day 7 *  OPEC Member Source: EIA, 2008 data
  8. 8. Oil Reserves by Country 300 264 250 These Fourteen Countries Represent 91% of the Planet’s 200 175 Oil Reserves billion barrels 138 150 115 United States Kazakhstan 104 99 98 Nigeria* 100 Providing Qatar* Saudi Arabia* China 60 Energy Venezuela* 44 37 Security Canada 50 Kuwait* U.A.E.* 30 Russia Libya* 25 Iran* Iraq* 20 19 0 8 *  OPEC Member Source: Oil and Gas Journal, 2009
  9. 9. Oil Sands are Essential as we Transition to a Lower Carbon Economy • Canada is investing in World Energy Outlook renewable and cleaner Primary Energy Demand 2007 fossil fuels, and committed 19% 27% to energy efficiency • Canada’s oil sands are part Coal of a global shift to heavier 21% Oil crudes Gas 33% Non-Emitting • The transition to a lower carbon economy will take Primary Energy Demand 2030* time - oil will be a dominant Providing fuel for decades Energy 18% 32% • This transition will involve Security reducing emissions from oil, as well as adopting new 30% * This scenario assumes energy sources atmospheric CO2 20% stabilization at 450 ppm 9
  10. 10. Global Crude Supply ~80% of the world’s known oil reserves are state controlled or managed by national oil companies ~20% is openly accessible to market based development Canada’s oil sands represent Providing ~60% of the world’s accessible Energy Security oil Source: Reserves by country data from the Energy information Administration, 2009 10
  11. 11. What are the Oil Sands? A mixture of sand, clay, water and a heavy oil called bitumen The second largest proven concentration of oil in the world 170 billion barrels of proven recoverable reserves Providing Energy Security Early stages of development – 7 billion barrels recovered to date 11
  12. 12. Regulations Canada’s oil sands are subject to a strict regulatory regime The Provinces have primary jurisdiction over the development of their resources: • Mines and Minerals Act • Oil Sands Tenure Regulations • Oil Sands Conservation Act The Government of Canada has important levers: • Canadian Environmental Assessment Act Ensuring • Fisheries Act Environmental • Canadian Environmental Protection Act Stewardship • Migratory Birds Convention Act • Species at Risk Act 12
  13. 13. The Facts – Land Use • Most future development will be drilled rather than mined • After over 40 years of development, the total area disturbed by mining is 232 mi2 – about the size of Chicago • The mineable area (1,900 mi2) represents one-tenth of 1% of Canada’s 1.2 million mi2 of boreal forest • Companies are financially obligated to restore land to productive status – 12% has already being reclaimed • Alberta holds $820 million in reclamation security bonds from industry Ensuring Environmental Stewardship 13
  14. 14. The Facts – Fresh Water Drilled Oil Sands (in situ) • 90% of the water is recycled • New projects are increasingly using non potable water • 1 barrel of water per barrel of oil sands crude Mined Oil Sands • 75% of the water is recycled • Amounts to less than 1% of average flow of Athabasca River • Governments have set withdrawals limits from the river • 3-4 barrels of water per barrel of oil sands crude Ensuring Environmental Tailings Ponds Stewardship • Producers not permitted to return wastewater to river • Regulations in place to reduce the amount of tailings • No evidence has been found that groundwater contamination from the tailings ponds is leaching into the river 14
  15. 15. The Facts – Greenhouse Gas Emissions GHG Emissions by Canada’s GHG Emissions Country by Sector Other 3% Oil Sands 5% Canada 2% Agriculture 8% Buildings 11% Other Industrial 14% United 21% States Electricity 22% Generation 17% Australia 1% Oil & Gas 17% Japan 4% (excluding oil sands) Ensuring India 4% Environmental Stewardship Eurasia China Transportation 25% 9% 20% Europe 17% 15
  16. 16. GHG Emissions in Perspective Ensuring Environmental Stewardship 16
  17. 17. New Technologies • Investing in carbon capture and storage • Quest project will inject 1.1 m tonnes of CO2 per year • The Alberta Carbon Trunk Line • Game-changing Technologies • Solvent Assisted Drilling • Toe to Heel Air Injection (THAI) Ensuring Environmental • New Tailings Pond Technologies Stewardship • Extract water from tailings to create a solid landscape 17
  18. 18. Toe-to-Heel Air Injection 2. Air injected down vertical 1. Steam injected down vertical well initiates combustion and horizontal wells 5. Refining and transport to market 3. Combustion front advances 4. Oil and vaporized water flows from toe to heel 18 Source: Petrobank Energy
  19. 19. Economic Benefits Oil Sands Heavy Hauler Trucks • The 200th Caterpillar 797 hauler delivered April 2009 Oil Pipeline Construction • Billions of dollars of pipelines being built • Using steel and creating jobs • Major regional economic stimulus Refinery expansions underway Generating Economic • Several expansions and modifications Benefits are underway • Providing significant jobs and local benefits 19
  20. 20. Economic Benefits (Forecast of 343,000 New American Jobs from 2011 to 2015) 7,300 1,700 1,200 800 800 4,700 1,000 6,800 19,400 7,200 1,900 1,000 10,600 1,000 800 13,800 1,600 3,900 7,700 2,300 7,600 13,200 1,200 4,000 3,200 14,600 9,300 1,700 3,100 8,400 6,000 3,200 2,900 4,800 43,200 10,300 Generating 7,000 Economic 4,000 4,700 6,500 3,200 2,000 Benefits 5,200 10,500 27,300 4,800 20,300 Alaska = 900 Hawaii = 1,400 20
  21. 21. Summary: Providing Energy Security • Safe, secure and reliable energy • Large energy resource potential Ensuring Environmental Stewardship • Strict regulations • Technology advances Generating Economic Benefits Generating • Jobs and revenues across North America Economic Benefits • American investment flows back to the U.S. 21
  22. 22. Environment Energy Economy
  23. 23. Oil Sands Production Technologies In situ Steam Assisted Gravity Drainage Cyclic Steam Process In Situ: • 80% of resource • 45% of current production • No tailings ponds • No water drawn from the Athabasca River • Smaller footprint Mining Mining: • 20% of resource • 55% of current production • The mineable area represents 3% of the total oil sands area 23
  24. 24. Pipelines Providing Energy Security New proposals Expansion of existing lines Existing lines Oil sands deposits Developed oil sands 24
  25. 25. Economic Benefits Fort McMurray, Alberta Joliet, Illinois Lafayette, Indiana Decatur, Illinois Lexington, South Carolina Amite, Louisiana The 200th Caterpillar 797 hauler delivered April 2009 25

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