Achieving BalanceThe Canadian Oil Sands Story
Oil Sands
Oil Sands Projects in Three Deposits                                                                             Kearl    ...
Oil Sands Production    Technologies
Mining                20% of the oil sands resource is less than 200 feet deep                            3% of the oil sa...
Mining
Drilled Oil Sands       80% of the oil sands resource is more than 200 feet deep                   97% of the oil sands la...
Example of SAGD projectPhoto: ConocoPhillips - Surmont                                  Schematic: Devon - Jackfish   8
Why are oil sands so    important?
Global Energy NeedsGlobal economic growth will require                 World Energy Demand 1980 - 2030more energy of all k...
Global Crude Oil Reserves by Country                                                                                      ...
Total Canadian Oil Production7th largest global producer and growing
The Canada-U.S. energy relationship is deeply integrated           Canadian & U.S. Crude Oil Pipeline Proposals
Environmental Stewardship in      Canada’s oil sands      Air, Land, Water
Guiding Principles for Oil Sands Development People       We will provide a safe environment for our employees, contractor...
Guiding Principles for Oil Sands Development Water    We will continue to reduce the amount of fresh water required per ba...
Managing Climate Change                                                    Global Energy Related Emissions By Country The ...
Canada’s Greenhouse Gas Policies Alberta Government                      Federal Government    Legislation passed, July 20...
Full Cycle GHG Emissions                      140                    Common U.S.                                      U.S....
Land
Footprint and ReclamationIn situ operations have a much smaller footprint, with road and pipeline infrastructure being the...
Water use from Alberta RiversSource: Alberta Environment: state of the basin website                                      ...
Water – Regulated and Monitored
Tailings Containment and Settling Ponds                                                                                   ...
Drilled Oil Sands – Water Use                                                                                             ...
New Technology - Reducing ImpactsLess energy = less GHG    Low energy extraction    35ºC instead of 80ºC = 1/3 less energy...
Third Party StudiesCambridge Energy Research Associates Growth in the Canadian Oil Sands: Finding the New BalanceCouncil o...
Economic Benefits and Jobs   Across North America
Economic Benefits of Oil Sands(in Canada over the next 25 years)    Economic impact generated    = $1.7 trillion (GDP)    ...
Impact of Oil Sands on US Economy and Jobs National Impacts                    2010    2015    2020    2025  ($US Billion)...
Oil Sands Benefits by State  Illinois       55% of Illinois’ oil comes from Canada  In Illinois, oil Sands creates:       ...
Examples of Oil Sands partnershipsAcross North America     Integrated trade means that funds used to purchase     crude oi...
Achieving Balance  Providing Energy Security  Ensuring Environmental  Stewardship  Generating Economic Benefits
Oil Sands Talk by Nick Olds
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Oil Sands Talk by Nick Olds

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Oil Sands Talk by Nick Olds

  1. 1. Achieving BalanceThe Canadian Oil Sands Story
  2. 2. Oil Sands
  3. 3. 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 (ECA) White Sands Jackfish Cold Lake Foster Hilda Lake Creek Wolf Lake/Primrose Cold Lake In Situ Projects Tucker Lake Mining Projects
  4. 4. Oil Sands Production Technologies
  5. 5. Mining 20% of the oil sands resource is less than 200 feet deep 3% of the oil sands land areaSource: Canadian Centre for Energy Information 5
  6. 6. Mining
  7. 7. Drilled Oil Sands 80% of the oil sands resource is more than 200 feet deep 97% of the oil sands land area Cyclic Steam Process Steam Assisted Gravity Drainage (SAGD) In Situ: • No mines • No tailings pond • No water from the Athabasca River • Smaller footprintSource: Canadian Centre for Energy Information 7
  8. 8. Example of SAGD projectPhoto: ConocoPhillips - Surmont Schematic: Devon - Jackfish 8
  9. 9. Why are oil sands so important?
  10. 10. Global Energy NeedsGlobal economic growth will require World Energy Demand 1980 - 2030more energy of all kinds 800 R enew ables 700 N uclearEnergy supply mix: C oal 600 Increasing role for renewables N atural Gas Oil Continuing reliance on hydrocarbons 500 Declining conventional means increasing role for non-conventional 400 crude oil & natural gas 300 200 100 0 1980 1990 2000 2010 2020 2030 Source: EIA ‐ International Energy Outlook 2008
  11. 11. Global Crude Oil Reserves by Country ls re ar b s World Oil 300 li on r v e Reserves Accessible 264 0 b il re s e Oil Reserves s 17 nds de il sa 250 cl u o I n of State owned or controlled Canada’s Oil Sands 53% 200 175 Accessiblebillio n barrels Other Other Other Other Accessible 47% Accessible Accessible 136 150 Accessible Reserves Reserves Reserves Reserves 115 102 99 92 100 60 44 36 50 30 21 0 S a u d i A r a b ia Ca n a d a Ir a n Ir a q Ku w a it V e n e z u e la A b u Dh a b i R u s s ia Lib y a Nig e r ia Ka z h a kh s t a n Un it e d Sta tes Source: Oil & Gas Journal Dec. 2008
  12. 12. Total Canadian Oil Production7th largest global producer and growing
  13. 13. The Canada-U.S. energy relationship is deeply integrated Canadian & U.S. Crude Oil Pipeline Proposals
  14. 14. Environmental Stewardship in Canada’s oil sands Air, Land, Water
  15. 15. Guiding Principles for Oil Sands Development People We will provide a safe environment for our employees, contractors and the communities where we operate. We will provide employment and business opportunities for regional communities, including Aboriginal peoples. We will consult with directly-affected stakeholders though all stages of our operations. Air We will design and operate our facilities to ensure that regional air quality continues to exceed provincial air quality objectives. We will continue to reduce greenhouse gas emissions per barrel of production by improving our energy efficiency and by developing new technologies.
  16. 16. Guiding Principles for Oil Sands Development Water We will continue to reduce the amount of fresh water required per barrel of production by improving water recycle rates, using non-potable water sources where feasible, and by developing new technologies. We will safeguard the quality of regional surface and groundwater resources. Land We will mitigate our impact on the land while maintaining regional ecosystems and biodiversity. We will progressively reclaim all lands affected by oil sands operations, returning them to self-sustaining landscapes.
  17. 17. Managing Climate Change Global Energy Related Emissions By Country The expected growth in oil sands Europe 17% Eurasia production will add to GHG emissions in China 9% 20% Japan Canada, but improvements are ongoing 4% India GHG intensity reduced by 33% from 4% Canada 1990 to 2007 2% Australia 1% Government regulations to limit GHG emissions will continue improvements United States Other 21% Significant investments in carbon capture 22% and storage will play a role GHG emissions from oil sands are: 5% of Canada’s GHG emissions 0.5% of United States GHG emissions less than 0.1% of global GHG emissions
  18. 18. Canada’s Greenhouse Gas Policies Alberta Government Federal Government Legislation passed, July 2007 Reductions of 20% from 2006 Requires immediate 12% reduction by 2020 in emission intensity for large Focus on technology emitters Compatible with US Compliance mechanims: Up to $1 billion for CCS Physical Reductions $15/tonne CO2 levy into Technology Fund Offsets $4 Billion investment $2 Billion to Carbon Capture Shell’s Quest CCS Project $2 Billion to Public Transit
  19. 19. Full Cycle GHG Emissions 140 Common U.S. U.S. Oil Sands Conventional Oil Imports Domestic 120 114 116 113 108 Range of Common 100 106 104 105 102 102 102 U.S. Imported Crude Oils 98 On a life cycle basis, oilg CO2e/M J gasoline 80 sands have similar GHG emissions to 60 other sources of oil (likely future scenario) No current production oil sands production oil sands production oil sands production Approx 40% of 2008 Approx 55% of 2008 Full cycle emissions or Approx 5% of 2008 40 “wells to wheels” is the appropriate measure to use 20 in setting carbon policies G H G E mis s io n s f ro m P ro d u ct io n a n d R e f in in g 0 S au d i M e x ic o Iraq V e n e zu e la N ig e ria U S G u lf C alifo rn ia O il S an d s In sit u o il In sit u o il In sit u o il G H G E mis s io n s f ro m G a s o lin e C o n s u mp t io n C o ast T h e rm al M in in g - san d s - san d s - san d s - U p g rad e d D ilu e n t U p g rad e d B it u m e n B it u m e n B it u m e n B it u m e nSource: Jacobs Consultancy, Life Cycle Assessment Comparison for North America and Imported Crudes, June 2009
  20. 20. Land
  21. 21. Footprint and ReclamationIn situ operations have a much smaller footprint, with road and pipeline infrastructure being the most obvious impact Impact about 15% of lease surface areaOil Sands mining area is limited Mineable area represents one-tenth of 1% of Canada’s boreal forest ConocoPhilips Surmont In Situ Project After 40 years of development, the area disturbed by mining is about 530 square kilometres - an area about 1/10th the size of metropolitan Toronto Companies must restore land to productive status - land reclamation is a condition of approval Reclamation underway but it takes years - 12% of mined area to date is actively being reclaimed Syncrude Mine Reclamation and 7.5 million seedlings have been planted Alberta holds $820 million in reclamation security bonds from industry
  22. 22. Water use from Alberta RiversSource: Alberta Environment: state of the basin website 23
  23. 23. Water – Regulated and Monitored
  24. 24. Tailings Containment and Settling Ponds Source: OSDGResearch on dry and consolidated tailings Tailings Reduction Operations - Suncor CO2 injection into tailings – CNRL Horizon
  25. 25. Drilled Oil Sands – Water Use n io u ct od rP ds an il S /year) O itu 3 s Volume (Millions m In Saline Water 1985 1990 1995 2000 2005 Source: GEO 2009 and CAP2008 WA, P,
  26. 26. New Technology - Reducing ImpactsLess energy = less GHG Low energy extraction 35ºC instead of 80ºC = 1/3 less energy Syncrude Low Energy Extraction – Aurora MineLess water: THAI process uses underground combustion rather than steam Using solvent to reduce the need for both water and energy (steam) Using electricity instead of steam to warm the bitumen underground Petrobank THAI processSaline (non-potable) water: Some new projects use 100% saline water Other in situ oil projects significantly increasing saline water use Devon’s Jackfish In Situ project
  27. 27. Third Party StudiesCambridge Energy Research Associates Growth in the Canadian Oil Sands: Finding the New BalanceCouncil on Foreign Relations The Canadian Oil Sands: Energy Security vs. Climate ChangeAlberta Energy Research Institute/Jacobs Eng. Comparison of life cycle GHG among crude oil typesCanadian Energy Research Institute Economic Impacts of the Petroleum Industry $1.7 trillion in economic benefit created
  28. 28. Economic Benefits and Jobs Across North America
  29. 29. Economic Benefits of Oil Sands(in Canada over the next 25 years) Economic impact generated = $1.7 trillion (GDP) Employment created = 11.4 million person-years 112,000 jobs rising to 500,000 jobs over 20 years Government Revenues = $491 Billion F e d e ra l T a x e s Federal Tax = $188 billion P ro v in c ia l T a x e s Provincial Tax = $118 billion P ro v in c ia l Alberta = 80% of total R o ya ltie s Alberta Royalties = $185 billion $7.4 billion per year
  30. 30. Impact of Oil Sands on US Economy and Jobs National Impacts 2010 2015 2020 2025 ($US Billion) U.S. Gross Domestic Product 11.5 34.0 40.4 42.2 National Impacts 2009- 2011- 2016- 2021- (Person Years) 2010 2015 2020 2025 U.S. Employment (Thousand) 172 343 88 22CERI 2009
  31. 31. Oil Sands Benefits by State Illinois 55% of Illinois’ oil comes from Canada In Illinois, oil Sands creates: $1.45 billion (2010-2025) in additional GDP 14,600 person years employment (2011-2015) Minnesota 83% of Minnesota’s oil comes from Canada In Minnesota oil sands creates: $588 billion (2010-2025) in additional GDP 6800 person years employment (2011-2015)
  32. 32. Examples of Oil Sands partnershipsAcross North America Integrated trade means that funds used to purchase crude oil from Canada are more likely to be spent in the U.S. Oil Sands Heavy Hauler Trucks The 200th Caterpillar 797 hauler delivered April 2009 The engine is made in Lafayette, Indiana; the largest frame component is cast in Amite, Louisiana, the cab is made in Joliet, Illinois welded together and the engine is installed in Decatur, Illinois; huge Michelin tires are made in Lexington, South Carolina The dump body and final assembly takes place at the mine site near Fort McMurray, AlbertaOil Pipeline Construction Billions of dollars of pipelines being built eg. Enbridge Clipper and TransCanada Keystone Using steel and creating jobs Major regional economic stimulus Refinery expansions underway Several expansions and modifications are underway Providing significant jobs and local benefits
  33. 33. Achieving Balance Providing Energy Security Ensuring Environmental Stewardship Generating Economic Benefits

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