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“We are a stable, reliable producer in a volatile, unpredictable world.”
Prime Minister Stephen Harper, July 14, 2006
“How we produce and use energy is fundamental to our economic recovery, but also our security and our planet.”
President Barack Obama,
February 19, 2009
Ensuring the Energy, Environmental,
& Economic needs of North America
The Canadian Oil Sands:
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2
• Canada has formally associated with the Copenhagen
Accord
• Submitted an economy-wide emissions reduction target for
2020 of 17% below 2005 levels
• Aligns with target and base year of the United States
• Committed to providing a fair share of quick-start funding for
developing countries
• Canada also support the G8 partners’ goal of reducing
global emissions by at least 50% by 2050; and developed
countries reducing GHG emissions by 80% or more by
2050
Ensuring
Environmental
Stewardship
Canada’s GHG Policies We are committed to advancing global action.
Canada’s GHG Policies
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3
Canada’s GHG Policies
Ensuring
Environmental
Stewardship
We are taking aggressive action to achieve our objectives.
• Energy Efficiency
• Residential houses, buildings, transportation, integrated communities
• Vehicle tailpipe CO2 emissions regulations
• Fuel Diversity
• Support for Next Generation Biofuels
• Increased use of natural gas in transportation
• Renewable fuels standards
• Greener energy system:
• Innovative new technologies such as geothermal and smart electrical grid
• CCS demonstration projects in electricity and other sectors
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Canada’s GHG Policies
• Canada and the US will have to be leaders in clean
energy to meet our GHG emissions objectives
• Clean Energy Dialogue established in 2009:
• Carbon Capture and Storage – cleaning fossil fuels
• Electricity Sector – smart grid technologies
• Research and Development – for next generation
technologies
• Building on vehicles, we’re working with the U.S. on
compatible GHG regulatory regimes
Ensuring
Environmental
Stewardship
We are working with the U.S. to address these issues
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Canada US Energy Trade (2008)
Providing
Energy
Security
Canada’s energy exports to the US = $122 billion
23MMWh
55MMWh
524
Bcf3629
Bcf
676MMb
Electricity Crude Oil Natural Gas
1% 13% 15% % of US
$3.8 Billion $61 Billion $33 Billion Consumption
Canadian exports satisfied 9% of total US demandCross-border direct investment in energy – $90 billion
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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
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Canada – Your Largest & Most Secure Energy Supplier
0 500 1,000 1,500 2,000 2,500
* OPEC Member Source: EIA, 2008 data
U.S. Imports of crude oil
& petroleum products
Providing
Energy
Security
Canada
Saudi Arabia*
Mexico
Venezuela*
Nigeria*
Iraq*
Algeria*
Russia
Angola*
thousand barrels per day
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Oil Reserves by Country
2520 19
3037
44
60
9899104
115
138
175
264
0
50
100
150
200
250
300
billio
n b
arr
els
Can
ad
a
Saudi A
rabia
*
U.A
.E.*
Venezuela
*
Nig
eria*
Ira
n*
Lib
ya*
Kazakhsta
n
Russia
United S
tate
s
* OPEC Member Source: Oil and Gas Journal, 2009
Ira
q*
Kuw
ait*
Providing
Energy
Security
These Fourteen Countries
Represent 91% of the Planet’s
Oil Reserves
Qata
r*
Chin
a
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Oil Sands are Essential as we Transition to a Lower Carbon Economy
Providing
Energy
Security
• Canada is investing in renewable and cleaner fossil fuels, and committed to energy efficiency
• Canada’s oil sands are part of a global shift to heavier crudes
• The transition to a lower carbon economy will take time - oil will be a dominant fuel for decades
• This transition will involve reducing emissions from oil, as well as adopting new energy sources
27%
33%
21%
19%
Coal
Oil
Gas
Non-Emitting
World Energy Outlook
Primary Energy Demand 2007
Primary Energy Demand 2030*
18%
30%
20%
32%
* This scenario assumes
atmospheric CO2
stabilization at 450 ppm
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Global Crude Supply
~80% of the world’s known oil
reserves are state controlled or
managed by national oil
companies
~20% is openly accessible to
market based development
Canada’s oil sands represent
~60% of the world’s accessible
oil
Providing
Energy
Security
Source: Reserves by country data from the Energy information Administration, 2009
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Early stages of development – 7 billion barrels
recovered to date
170 billion barrels of proven recoverable reserves
The second largest proven concentration
of oil in the world
A mixture of sand, clay, water and a
heavy oil called bitumen
What are the Oil Sands?
Providing
Energy
Security
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Regulations
The Provinces have primary jurisdiction over the development of their resources:
• Mines and Minerals Act
• Oil Sands Tenure Regulations
• Oil Sands Conservation Act
The Government of Canada has important levers:
• Canadian Environmental Assessment Act
• Fisheries Act
• Canadian Environmental Protection Act
• Migratory Birds Convention Act
• Species at Risk Act
Ensuring
Environmental
Stewardship
Canada’s oil sands are subject to a strict regulatory regime
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The Facts – Land Use
• Most future development will be drilled rather than mined
• After over 40 years of development, the total area disturbed
by mining is 232 mi2 – about the size of Chicago
• The mineable area (1,900 mi2) represents one-tenth of 1% of
Canada’s 1.2 million mi2 of boreal forest
• Companies are financially obligated to restore land to
productive status – 12% has already being reclaimed
• Alberta holds $820 million in reclamation security bonds from
industryEnsuring
Environmental
Stewardship
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The Facts – Fresh Water
Ensuring
Environmental
Stewardship
Mined Oil Sands
• 75% of the water is recycled
• Amounts to less than 1% of average flow of Athabasca River
• Governments have set withdrawals limits from the river
• 3-4 barrels of water per barrel of oil sands crude
Drilled Oil Sands (in situ)
• 90% of the water is recycled
• New projects are increasingly using non potable water
• 1 barrel of water per barrel of oil sands crude
Tailings Ponds
• Producers not permitted to return wastewater to river
• Regulations in place to reduce the amount of tailings
• No evidence has been found that groundwater contamination
from the tailings ponds is leaching into the river
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The Facts – Greenhouse Gas Emissions
GHG Emissions by
Country
Canada’s GHG Emissions
by Sector
Other 3%
Oil Sands 5%
Agriculture 8%
Buildings 11%
Industrial 14%
Electricity
Generation 17%
Oil & Gas 17%(excluding oil sands)
Transportation 25%
Ensuring
Environmental
Stewardship
United
States
22%
Other
21%
China
20%Eurasia
9%
Canada 2%
Japan 4%
India 4%
Europe
17%
Australia 1%
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GHG Emissions in Perspective
Ensuring
Environmental
Stewardship
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New Technologies
• Investing in carbon capture and storage
• Quest project will inject 1.1 m tonnes of CO2 per year
• The Alberta Carbon Trunk Line
• Game-changing Technologies
• Solvent Assisted Drilling
• Toe to Heel Air Injection (THAI)
• New Tailings Pond Technologies
• Extract water from tailings to create a solid landscape
Ensuring
Environmental
Stewardship
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Toe-to-Heel Air Injection
1. Steam injected down vertical
and horizontal wells
Source: Petrobank Energy
2. Air injected down vertical
well initiates combustion
3. Combustion front advances
4. Oil and vaporized water
flows from toe to heel
5. Refining and
transport to market
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Economic Benefits
Oil Sands Heavy Hauler Trucks
• The 200th Caterpillar 797 hauler
delivered April 2009
Oil Pipeline Construction
• Billions of dollars of pipelines being built
• Using steel and creating jobs
• Major regional economic stimulus
Refinery expansions underway
• Several expansions and modifications
are underway
• Providing significant jobs and
local benefits
Generating
Economic
Benefits
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Economic Benefits (Forecast of 343,000 New American Jobs from 2011 to 2015)
Generating
Economic
Benefits
7,300
4,700
43,200
Alaska = 900
Hawaii = 1,400
3,200
1,200
1,900
6,500 2,000
3,1006,000
800
800
1,000
2,300
3,200
6,800
3,900
2,900
27,3004,800
4,000 3,200
7,200
14,600
10,600
7,600
20,300
10,5005,200
4,700
4,800
7,000
8,400
10,300
13,200
13,800
1,700
1,6007,700
4,0009,300
19,400
800
1,700
1,000
1,200
1,000
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Summary:
Providing Energy Security
• Safe, secure and reliable energy
• Large energy resource potential
Ensuring Environmental Stewardship
• Strict regulations
• Technology advances
Generating Economic Benefits
• Jobs and revenues across North America
• American investment flows back to the U.S.
Generating
Economic
Benefits
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Environment
Economy
Energy
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Oil Sands Production TechnologiesIn situ
Steam Assisted Gravity Drainage Cyclic Steam Process In Situ:
• 80% of resource
• 45% of current
production
• No tailings ponds
• No water drawn
from the
Athabasca River
• Smaller footprint
Mining:
• 20% of
resource
• 55% of current
production
• The mineable
area represents
3% of the total
oil sands area
Mining
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Pipelines
New proposals
Expansion of existing lines
Existing lines
Oil sands deposits
Developed oil sands
Providing
Energy
Security
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Economic Benefits
The 200th Caterpillar 797 hauler delivered April 2009
Lafayette,
Indiana
Amite,
Louisiana
Decatur,
Illinois
Joliet,
Illinois
Lexington,
South Carolina
Fort McMurray,
Alberta