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Presentation to Canadian Crude Oil Conference Lake Louise, Alberta, 9 September MMX Satya Brata Das Cambridge Strategies Inc. Energy Leadership Begins in the Mirror

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<ul><ul><li>Public demand for sustainable development </li></ul></ul><ul><ul><li>Oil sands painted as the dirtiest oil on the planet </li></ul></ul><ul><ul><li>Thirst for fossil fuels stronger than ever </li></ul></ul><ul><li>If change is coming…. </li></ul><ul><ul><li>What will it look like? </li></ul></ul><ul><ul><li>Who will control the agenda and the direction? </li></ul></ul><ul><ul><li>How can different stakeholders be satisfied? </li></ul></ul>Managing change

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Canada: The democratic world’s energy superpower

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The American battleground

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The Big Truth Fossil fuels and alternative/emerging energy are complimentary.

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<ul><li>Canada is the only energy superpower with an obligation of environmental stewardship. </li></ul>Environment and Economy =One Issue

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<ul><li>We have $15 trillion worth of oil </li></ul><ul><li>sands wealth. </li></ul><ul><li>Let’s fund the transition to sustainable </li></ul><ul><li>energy, starting with </li></ul><ul><li>greener hydrocarbon </li></ul><ul><li>production. </li></ul>Oil Sands Wealth Funds the Future

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We Can Lead the World Greener oil sands; cleaner coal; alternative energy; bio-energy and bio-economy. The oil sands can make Canada the world’s first clean-energy superpower.

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So Let’s Deal With the Elephant in the Room

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<ul><li>Natural Resources Severance Tax (NRST): </li></ul><ul><li>Applied to the gross value of any natural resource and </li></ul><ul><li>Measured by the market price of the resource at the first “point of sale” upon severance. </li></ul>Facing up to a carbon tax

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<ul><li>A predictable and strong stream of revenue will: </li></ul><ul><li>Pay for a clean-energy economy </li></ul><ul><li>Accelerate the development of low-carbon industries and </li></ul><ul><li>Greatly increase investment in renewables and alternatives. </li></ul>NRST will create jobs and drive growth

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<ul><ul><li>It’s all about social license. </li></ul></ul>Why Must the Oil Sands Go Green?

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Our approach to measuring public policy preferences <ul><li>Preference measurement and analysis is a research approach that can be used to understand how people make choices </li></ul>Understand perceptions and how choices are made (trade-off) Measure preferences through a simple user friendly survey Learn how perceptions compare and what is most important to people Identify what is most important to people and what the public policy preference drivers are Design , deliver, and/or communicate new or existing programs addressing the needs of the stakeholders Ideally, blend preferences with costs to optimize policies and seek to create win-win solutions - Conjoint Survey on Albertans Values for Oil Sands Development 1 2 3

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Albertans are engaged and generally optimistic… 65% 89% 76% Percentage of respondents who are engaged, demonstrating three behaviors: Tell, Remain, Strive Believe the oil sands are important to Alberta’s prosperity Do not believe the quality of life in Alberta will decline in the next two years Citizenship Engagement Importance of the oil sands Quality of life will not decline - Conjoint Survey on Albertans Values for Oil Sands Development

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… Yet there are some problems below the surface 31% 17% 12% Percentage of respondents believe Alberta is managing the oil sands responsibly Satisfaction with Alberta-based Members of Parliament Satisfaction with the Stelmach government Managing the oil sands Satisfaction with Alberta based MPs Satisfaction with Stelmach government - Conjoint Survey on Albertans Values for Oil Sands Development

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What matters most to Albertans <ul><ul><li>This chart illustrates the potential a given feature has to drive overall preferences. </li></ul></ul>- Conjoint Survey on Albertans Values for Oil Sands Development

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In your opinion, how important are the oil sands to Alberta’s prosperity? Somewhat important Very important Extremely important Very unimportant Extremely unimportant <ul><li>In the 2007 study, 87% of respondents believed the oils sands were Extremely or Very Important to Alberta’s future </li></ul>Somewhat unimportant 9 out of 10 view the oil sands as important to Alberta’s prosperity - Conjoint Survey on Albertans Values for Oil Sands Development

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The companies operating in the oil sands should be held liable for all environmental damages caused by their operations Slightly agree Agree Completely agree Disagree Completely disagree Slightly disagree Note: Data collection completed prior to the BP oil spill in the Gulf of Mexico 9 in 10 Albertans feel companies liable for environmental damages… - Conjoint Survey on Albertans Values for Oil Sands Development

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The companies operating in the oil sands should solely be responsible for reclamation Slightly agree Agree Completely agree Disagree Completely disagree Slightly disagree … Yet fewer feel companies are solely responsible for reclamation - Conjoint Survey on Albertans Values for Oil Sands Development

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If the government set rules, regulations, and defined best practices, the companies operating in the oil sands should lead all reclamation Slightly agree Agree Completely agree Disagree Completely disagree Slightly disagree 4 of 5 Albertans believe companies should lead reclamation efforts adhering to government rules and standards - Conjoint Survey on Albertans Values for Oil Sands Development

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If the government set rules, regulations, and defined best practices, the companies operating in the oil sands should lead all reclamation Slightly agree Agree Completely agree Disagree Completely disagree Slightly disagree 4 of 5 Albertans believe companies should lead reclamation efforts adhering to government rules and standards - Conjoint Survey on Albertans Values for Oil Sands Development

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Reclamation must support and sustain a wide diversity of plants and animals Slightly agree Agree Completely agree Disagree Completely disagree Slightly disagree 87% of Albertans believe reclamation must support and sustain a wide diversity of plants and animals - Conjoint Survey on Albertans Values for Oil Sands Development

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Who do you trust the most to responsibly manage Alberta’s growth? Brian Mason (NDP Party) David Swann (Liberal Party) Ed Stelmach (PC Party) None of the above Danielle Smith (Wildrose Alliance) Strong level of distrust among established politicians to responsibly manage Alberta’s growth - Conjoint Survey on Albertans Value for Oil Sands Development

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Suite 208, Empire Building, 10080 Jasper Ave., Edmonton, Alberta, Canada T5J 1V9 [email_address] (780) 420-0505 Ways to Connect www.GreenOilBook.com www.CambridgeStrategies.com