OIL SANDS

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OIL SANDS NORTH AMERICAN ENERGY
SECURITYFebruary 21, 2012Florida International
University
Janet Annesley, Vice President
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Canada is a Global Energy Player

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• Canada is third in the world in natural gas
  production.

• 3
• Canada is 3rd to Saudi Arabia Venezuela in
  crude oil reserves

• 1
• Canada has the worlds largest uranium reserves.

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• Canada is second in the world in
  hydro-electricity generation.

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Oil Sands Resource, Production, Markets
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The Global Energy Context

• Significant energy demand growth
• Population, standards of living
• Need all forms of energy
• Increasing role for renewables
• Continuing reliance on hydrocarbons
• Increasing role for non- conventional crude oil
  natural gas
• Technology is a key lever for sustainable growth
• Production
• Cost competitiveness
• Environmental performance

Current Policies Scenario
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Global Crude Oil Reserves by Country
Includes 170 billion barrels of oil sands
reserves
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Source Oil Gas Journal Dec. 2010
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Top 10 World Crude Oil Producers in 2010
2025
Sources U.S. Dept. of Energy, Energy Information
Administration CAPP
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Oil Sands Projects in Three Deposits
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Two Methods of Oil Sands Recovery
Drilling 80 of reserves
Mining 20 of reserves
Photo ConocoPhillips - Surmont
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Schematic Devon - Jackfish
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Canadian Oil Sands and Conventional Production
Forecast (2011-2025)
Actual
Forecast
In Situ
Mining
Conventional Heavy
Conventional Light
Pentanes/Condensate
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Canadian U.S. Crude Oil Pipeline Proposals
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Canadas Oil Products Export to U.S.
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Potential Tanker Markets for Canadian Oil Sands
Production

Prince Rupert/Kitimat
1,400 N Miles
4,500 N Miles

Korea

Japan
Japan


China
Los Angeles
Japan
Persian Gulf

Taiwan
Taiwan
Taiwan
1,790
Jose/
8,600 N Miles


La Cruz
SantaCruz
5,400 N Miles
Target Markets
Far East
U.S West Coast
Competitive travel distances for Canadian supply
to both markets
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Source Enbridge Pipelines
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Environmental Performance
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Global Energy Related Emissions
Global Emissions
Canadas 2

• GHG emissions from oil sands
• just over 1/1000th of global GHG emissions
• 6.5 of Canadas GHG emissions
• 29 reduction in intensity from 1990

Sources 1. U.S. Dept. of Energy/EIA 2.
Environment Canada
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Full Cycle GHG Emissions
105
106
114
104
98
102
102
107
102
Source Jacobs Consultancy, Life Cycle Assessment
Comparison for North America and Imported Crudes,
June 2009
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North American GHG Emissions (2009) Coal-Fired
Power and Oil Sands
AK
ND
MT
MN
OR
MI
WY
WI
NH
SD
NY
NE
IA
NV
IN
OH
UT
CO
NJ
MO
KY
KS
VA
WV
NC
IL
AZ
NM
TN
OK
Canadian oil sands
AR
SC
GA
AL
Legend
Canadian coal-fired power generating plants
100 megatonnes
TX
50 megatonnes
MS
LA
U.S. Coal fired power generating plants
15 megatonnes
FL
Sources U.S. DOE/EIA Environment Canada
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Reducing Greenhouse Gas Emissions in Oil Sands
Oil Sands GHG Emissions/bbl

• Energy Efficiency
• Using less energy input
• Reducing energy waste/losses
• Capturing waste heat
• Cogeneration power/steam
• Improved recovery processes
• Lower temperature extraction
• Additives to reduce use of both water and energy
  (steam)
• Use of electricity rather than steam
• Underground combustion rather than steam
• Carbon capture sequestration
• Most effective at upgraders

29
g co2 eq./mj
1990
2008
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Land Use and Reclamation in the Boreal Forest
662
662
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Water Use and Quality

• Mining
• 2-4 bbl of water per bbl of oil
• 80-90 recycle
• Currently use 0.5 per cent of the annual flow of
  the Athabasca river
• To protect during low flow periods withdrawals
  are restricted
• Drillable (Insitu)
• 0.25-0.5 bbls of water per bbl of oil
• 90-95 recycle
• No water from Athabasca River
• Shift to using saline water from sub-surface
  aquifers
• Newer projects are using 100 saline water for
  steam

• Enhanced monitoring systems
• Science based, transparent, credible
• Recent federal and provincial government reviews
  to enhance monitoring

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Environmental Social Performance

• Focus on both crude oil / oil sands natural gas
• Reputation Performance Communication
• Continuous performance improvement
• More effective messaging (breadth, channels,
  transparency)
• Improved industry collaboration
• Key concerns expressed regarding oil gas
  development
• Local / regional environmental social impacts
  (air, land, water, biodiversity)
• Global climate change
• Role of fossil fuels in future energy system

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Royal Society of Canada ReportEnvironmental
Health Impacts of Canadas Oil Sands Industry

• Science-based, independent analysis of the
  environmental aspects of Canadas oil sands
• Addresses many of the issues and perceptions of
  oil sands development
• Reclamation is not keeping pace, but sustainable
  reclamation is achievable
• Water use does not threaten viability of the
  Athabasca River
• No impact on Athabasca water quality/ecosystem
  and no evidence of impact on human health in
  downstream communities
• Tailings technologies are emerging, but tailings
  inventory is growing
• GHG emissions per barrel are reducing but growing
  production creates a challenge in meeting
  international commitments
• Minimal impacts on regional air quality

December 2010
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Responsible Canadian Energy

• Oil Sands Report
• Principles Performance
• Measurement Reporting
• Transparency

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Oil Sands Advertising -Communicating with the
Public

• To demonstrate that industry takes these issues
  seriously and what is being done by real people
  to address them.

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Success Stories
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Summary

• 3Es
• Environmental performance
• Energy security reliability
• Economic growth
• Competitiveness social license are must haves
• Reputation Performance Communication
• Technology is key performance lever
• We need to work together we all need to step up!

A great opportunity for Canada and the
U.S.needs innovative, creative, committed,
determined people to make it happen!
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