This presentation will provide insight into market conditions for the Canadian Energy market. The areas of emphasis will be the following: Oil Rigs Oil Pricing Imports and Exports Refineries Proven Reserves Exports Capital Expenditures Pipelines Government Policies

1. Oil and Gas – Canada – July
2016
By: Paul Young, CPA, CGA
August 11, 2016

2. Disclaimer
• This presentation is on view of the oil and gas sector for Canada

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
• Oil Rigs
• Oil Pricing
• Imports and Exports
• Refineries
• Proven Reserves
• Exports
• Capital Expenditures
• Pipelines
• Government Policies

5. Oil Rigs
• Source – Baker Hughes

6. Oil Pricing
Source: BMO

7. Oil and Gas Production
Canada produced 14.7 million
cubic metres (92.8 million
barrels) of crude oil and
equivalent products in May,
down 11.6% compared with the
same month in 2015.
Source: Stats Canada

8. Oil (Exports and Imports)

9. Oil / Canada

10. Oil Refinery

11. US Refinery

12. Proven Reserves
• The U.S. holds more oil reserves than anyone else in the world, including Saudi Arabia, Russia, and Venezuela.
• That conclusion comes from a new independent estimate from Rystad Energy, a Norwegian consultancy. Rystad
estimates that the U.S. holds 264 billion barrels of oil, more than half of which is located in shale. That total exceeds
the 256 billion barrels found in Russia, and the 212 billion barrels located in Saudi Arabia.
• The findings are surprising, and go against conventional wisdom that Saudi Arabia and Venezuela hold the world’s
largest oil reserves. The U.S. Energy Information Administration, for example, pegs Venezuela’s oil reserves at 298
billion barrels, the largest in the world. Rystad Energy says that these are inflated estimates because much of those
reserves are not discovered. Instead, Rystad estimates that Venezuela only has about 95 billion barrels, which
includes its estimate for undiscovered oil fields.
• Moreover, Rystad argues that there are not uniform ways of measuring oil reserves from country to country. Some
countries report proven reserves, using conservative estimates from existing oil fields. Other countries, like
Venezuela, report undiscovered reserves. But Rystad applied similar metrics to all countries in its report to make
comparisons easier. “An established standard approach for estimating reserves is applied to all fields in all countries,
so reserves can be compared apple to apple across the world, both for OPEC and non-OPEC countries. Other public
sources of global oil reserves, like the BP Statistical Review, are based on official reporting from national authorities,
reporting reserves based on a diverse and opaque set of standards.” The latest assessment, Rystad argues, paints a
more accurate portrait.
• The U.S., then, sits atop with its oil reserves. Rystad notes that Texas alone could have 60 billion barrels of oil.

13. Exports

14. Capital Expenditures
• Canadian oil production will grow by 28
percent to hit 4.9 million barrels per day
(bpd) by 2030, the Canadian Association of
Petroleum Producers said in its annual
report.
• The estimate is lower than CAPP's previous
forecast of 5.3 million bpd by 2030, and
comes amid a two-year rout in global oil
prices that continue to hammer Canadian
oil companies, which have slashed billions
in capital expenditures.
• Production from Alberta's oil sands, the
world's third-largest crude reserves and
No. 1 source of U.S. oil imports, will hit 3.7
million bpd by 2030, the industry group
said on Thursday.
• CAPP expects conventional oil production
in Western Canada, including condensates,
to fall to 1.1 million bpd by 2018 from 1.3
million bpd in 2015 and is expected to
remain relatively stable to 2030.

15. Pipelines / Canada

16. Canada Pipelines

17. Canada Pipelines

18. Canada Pipelines

19. Canada Pipelines

20. Pipelines
• http://www.cbc.ca/news/canada/calgary/neb-approves-transcanada-
pipeline-north-toronto-1.3708140
• http://business.financialpost.com/news/energy/america-has-built-
the-equivalent-of-10-keystone-pipelines-since-2010-and-no-one-said-
anything

21. Policies / issues
• Carbon Tax/Pricing (Alberta/Ontario)
• Shift to clean technology (i.e. electrical cars, wind, solar, biomass)
• CPP expansion
• Fort McMurray Fire
• Lack of capacity (pipelines)