oilsandscalgary2

Slide2: 

Canada is the world’s third largest producer of natural gas, and the eighth largest producer of crude oil. Canada is the largest supplier of oil and gas to the United States. 2005 Industry Revenues: CDN$109 Billion (upstream) In 2006 over 45% of total oil production in Canada came from the oilsands. Traditional oil drilling made up nearly 42% of production, and East Coast operations offshore captured the remaining 13%. Canada’s Oil & Gas Industry

Slide3: 

Canada has many undeveloped energy resources, including: Major crude oil and natural gas deposits off northern coasts Untapped gas reserves in the Yukon and Northwest Territories Massive reserves of oil sands in Alberta, second only to those of Saudi Arabia 12 of Canada’s 13 provinces contain up stream petroleum industry operations.

Slide4: 

Drilling (2007 Forecast): Total: 22,000 wells (including dry and service) Oil: 5,500 Natural Gas: 16,500 Industry Statistics

Total Wells Drilled in Canada: 

Total Wells Drilled in Canada Based on Rig Release 2000’s Avg = 20,500 Wells 1990’s Avg = 10,000 Wells 2005 = 25,200 Forecast 2007 = 22,000 2006 = 23,400

Rigs Active in Western Canada: 

Rigs Active in Western Canada 2005 2004 # of Rigs active Another Record High start to 2006 drilling activity with over 760 rigs currently active. 2006

Industry Capital Spending Cdn $billions: 

Industry Capital Spending Cdn $billions Northern Canada ‘04 ‘05 ‘06F `07F $0.3 $0.5 $0.5 $0.5 Oil Sands ‘04 ‘05 `06F `07F $6.2 $10.4 $11.6 $17.0 WCSB ‘04 ‘05 ‘06F `07F $24.5 $32.7 $32.6 $26.8 East Coast Offshore ‘04 ‘05 ‘06F `07F $1.9 $1.9 $1.0 $0.7 Note: Spending in Canada excludes spending associated with mergers & acquisitions The oil & gas industry will invest $45 billion in Canada in 2007

Slide8: 

Conventional Oil 1,034,000 barrels per day (bpd) Pentanes/Condensate 160,000 bpd Surface Mining 792,000 bpd In-situ Bitumen 475,000 bpd Total Crude Oil: 2,461,000 bpd Natural Gas: 17 bcf/d Western Canada Oil & Gas Production (2006)

Slide9: 

Natural Gas 9.7 billion cubic feet per day Crude Oil 1,611,000 bpd Refineries 20 Refinery capacity 1,916,000 barrels per day

Top 10 World Natural Gas Producers: 

Top 10 World Natural Gas Producers Source: Oil & Gas Journal Canada, is the 3rd largest producer of natural gas in the world.

Alberta:A Gas Hub for North America: 

Alberta serves as a hub delivering gas to Eastern Canada and Northern USA. Toronto San Francisco New York Alberta: A Gas Hub for North America

Canadian Natural Gas Productive Capacity – CERI Alternate Case: 

Canadian Natural Gas Productive Capacity – CERI Alternate Case Source: Canadian Energy Research Institute

Western Canada Natural Gas Production: 

Western Canada Natural Gas Production Source: FirstEnergy Capital 2003 2004 2005

Northern Natural Gas: Ultimate Potentialand Proposed Gas Routes: 

Northern Natural Gas: Ultimate Potential and Proposed Gas Routes For illustrative purposes only Fairbanks Norman Wells Inuvik Mainland NWT & Yukon 17 Tcf Arctic Islands 45 Tcf Mackenzie Valley Pipeline Mackenzie Valley Pipeline: Regulatory Application - NEB application October 7, 2004 - 22 regulatory agencies - cooperation agreement in place - environmental review underway - proponents ready to proceed to regulatory hearing Project - Costs: C$7.0 billion - Base Capacity - 1.2 bcf/d - Range – 0.8 to 1.8 bcf/d - On-stream date: 2010-2011 Alaska 115 Tcf Mackenzie Delta / Beaufort Sea 61 Tcf Alaska Natural Gas Pipeline: Costs: US$20 billion (Alaska – Chicago) Capacity: 4.5 - 6.0 bcf/d On-stream: 2012-2015 Alaska Natural Gas Pipeline

Top 10 World Crude Oil Producers in 2005: 

Top 10 World Crude Oil Producers in 2005 Source: EIA & CAPP

Canada: World Leader in Oil Reserves: 

Canada: World Leader in Oil Reserves Source: Oil & Gas Journal Dec. 2004 Canada, with 175 billion barrels in Oil Sands reserves, ranks 2nd only to Saudi Arabia in global oil reserves

U.S. Imports of Crude Oil and Petroleum Products by Country of Origin: 

U.S. Imports of Crude Oil and Petroleum Products by Country of Origin Petroleum Products Crude Oil #1 Source: EIA, 2005 Canada, is the largest (#1) supplier of crude oil and petroleum products to the US.

Opportunity for Recovery Technology: 

Opportunity for Recovery Technology With current technology and economics, only 27% of Canada’s total conventional oil in place (216 billion barrels) is recoverable Source: NEB An improvement in recovery rate of 1% results in additional production of 1,000,000 b/d for seven years @ constant production rate

Canadian Oil ProductionConventional, Oil Sands and Offshore: 

Canadian Oil Production Conventional, Oil Sands and Offshore Source: CAPP WCSB Conventional Oil Oil Sands Offshore Actual Forecast Oil Sands Growth 2006 = 1.1 million b/d Base Case: 2020 = 4.0 million b/d Constrained Case: 2020 = 3.3 million b/d Constrained Case Total