Ensuring the Energy, Environmental, and Economic needs of North America

1
Canadian Energy Perspectives
Ensuring the Energy, Environmental, and Economic
needs of North America
2
Canada US Energy Trade (2008)
Canadas energy exports to the US 122
billion Canadian exports satisfied 9 of total US
demand Cross-border direct investment in energy
is approx. 90 billion
ProvidingEnergySecurity
Electricity Crude Oil Natural Gas US consumption
1 13 15 from Canada 3.8 Billion 61
Billion 33 Billion
3
Canada is your largest most secure energy
supplier
Russia
Angola
Algeria
U.S. Imports of crude oil petroleum products
Iraq
Nigeria
Venezuela
ProvidingEnergySecurity
Mexico
Saudi Arabia
Canada
thousand barrels per day
? OPEC Member Source EIA, 2008 data
4
Oil Reserves by Country
These Twelve Countries Represent 88 of the
Planets Oil Reserves
United States
Kazakhstan
Nigeria
ProvidingEnergySecurity
Saudi Arabia
Abu Dhabi
Venezuela
Canada
Kuwait
Russia
Libya
Iran
Iraq
? OPEC Member Source EIA, 2008 data
5
Global Energy Demands

• 82 of the worlds known oil reserves are state
  controlled or managed by national oil companies
• Only 18 is openly accessible to the market
• Two thirds of that accessible oil is in Canadas
  Oil Sands

ProvidingEnergySecurity
6
Pipelines
ProvidingEnergySecurity
7
Greenhouse Gas (GHG) Emissions
GHG Emissions by Country
Canadas GHG Emissions by Sector
Ensuring Environmental Stewardship
8
Emissions in Perspective
Ensuring Environmental Stewardship
9
Regulations

• The Provinces have jurisdiction over the
  development of their resources
• The Government of Canada has legislative and/or
  mandated responsibilities in the areas of
• Fisheries and Navigable Waters, Wildlife
  Protection
• Trans-boundary Issues and Human Health
• Shared responsibilities include a fiscal and
  regulatory framework that encourages investment,
  technology development, and meets environmental
  goals

Ensuring Environmental Stewardship
10
Economic Benefits (Forecast of 343,000 New
American Jobs from 2011 to 2015)
1,700
7,300
800
800
1,200
1,000
4,700
6,800
19,400
7,200
1,000
1,000
1,900
10,600
1,600
800
13,800
7,700
3,900
2,300
13,200
4,000
1,200
7,600
3,200
9,300
14,600
1,700
3,100
8,400
6,000
3,200
4,800
2,900
Generating Economic Benefits
43,200
10,300
7,000
4,700
4,000
3,200
6,500
2,000
5,200
10,500
27,300
20,300
4,800
Alaska 900 Hawaii 1,400
11
Environment
Energy
Economy
12
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

13
Oil is an Important Part of our Energy Mix

• Global economic growth is going to require more
  energy of all kinds
• Canada and the United States are preparing for
  the shift away from fossil fuels towards cleaner
  fuels
• The oil sands are a vital part of the North
  American energy future

14
Canadian Production Relies on Oil Sands Crude

15
Oil Sands Production Technologies
In situ
Steam Assisted Gravity Drainage

• In Situ
• 80 of resource
• 45 of current production
• No tailings ponds
• No water drawn from the Athabasca River
• Smaller footprint

Cyclic Steam Process

• Mining
• 20 of resource
• 55 of current production
• The mineable area represents 3 of the total oil
  sands area

16
Well-to-wheel GHG Emissions by Crude Type

• Oil sands derived fuels generally have 10 higher
  emissions than other crudes used in the United
  States
• Emissions for conventional crudes will increase
  over time with the global shift to heavier crudes
  while new technologies will further decrease GHG
  emissions from the oil sands

Algeria
Iraq
Nigeria
Venezuela
Saudi Arabia
Canada
17
Life-cycle GHG Emissions
The full life-cycle of emissions (well to
wheels) measures the GHG impact of fuels from
their extraction to use For gasoline, around 75 -
80 of life cycle GHG emissions from gasoline
arise from combustion (tank to wheel)
Saudi Arabia
Abu Dhabi
Venezuela
Canada
Kuwait
Russia
Libya
Iran
Iraq
18
Canadas GHG Policies
Alberta Government Legislation passed requiring
mandatory GHG emissions reductions (first in
North America) Alberta Climate Change Plan sets
target to reduce provincial GHG emissions in 2050
by 50 from BAU Achievements to Date
Transportation and energy infrastructures between
Canada 122 million paid into the Climate Change
and Emissions Management Fund to support
transformative emission reduction technologies in
Alberta 6.5 million tonnes in real reductions
made (equivalent to removing 1.3 million vehicles
from the road for a year)

• Federal Government
• Committed to reduce GHG emissions by 20 below
  2006 levels by 2020 and 60-70 by 2050
• Specific policy framework, covering major GHG
  sources, announced this fall
• Committed to achieve 90 of electricity from
  non-emitting sources by 2020
• Budget 2009 created the Clean Energy Fund, which
  includes 650M for CCS
• Entered into a Clean Energy Dialogue with the
  United States, which will advance CCS in Canada
  and the United States
• Endorsed G8 commitment to launch 20 CCS
  demonstrations by 2010

19
Canadas Oil Sands

• The oil sands are a strategic resource that will
  contribute to energy security for Canada, North
  America and the world for decades to come.
• There are significant environmental challenges in
  the areas of air, land and water.
• Improvements have been made in each of these
  areas, but more must be done.
• We have the regulatory framework to support our
  objectives for improved environmental
  performance.
• Governments and industry are making the
  investments in technology to achieve our
  objectives in environmental performance.
• We are committed to bring on this key strategic
  resource in an environmentally responsible way.