The document discusses Canada's oil sands and their importance in providing energy security and economic benefits to North America while ensuring environmental stewardship. It notes that oil sands development produces jobs and revenues across North America, and that Canada is a stable supplier of oil, natural gas and electricity to the United States. It also summarizes technologies used to extract and upgrade oil from sands, environmental regulations and initiatives, and the relatively small footprint of development compared to oil sands reserves and Canada's boreal forest.

1. The Canadian Oil Sands:
Ensuring the Energy, Environmental,
& Economic needs of North America
“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
“We are a stable, reliable producer
in a volatile, unpredictable world.”
Prime Minister Stephen Harper,
July 14, 2006

2. Canada’s GHG Policies
Canada’s GHG Policies
We are committed to advancing global action.
• 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
Ensuring
• Canada also support the G8 partners’ goal of reducing Environmental
Stewardship
global emissions by at least 50% by 2050; and developed
countries reducing GHG emissions by 80% or more by
2050
2

3. Canada’s GHG Policies
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 Ensuring
Environmental
• Greener energy system: Stewardship
• Innovative new technologies such as geothermal and smart
electrical grid
• CCS demonstration projects in electricity and other sectors
3

4. Canada’s GHG Policies
We are working with the U.S. to address these issues
• 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 Ensuring
Environmental
• Building on vehicles, we’re working with the U.S. on Stewardship
compatible GHG regulatory regimes
4

5. Canada US Energy Trade (2008)
Canada’s energy exports to the US = $122 billion
Canadian exports satisfied 9% of total US demand
Cross-border direct investment in energy – $90 billion
23M
MWh
524
55M
MWh 676 3629 Bcf
MMb Bcf
Providing
Energy
Security
Electricity Crude Oil Natural Gas
1% 13% 15% % of US
$3.8 Billion $61 Billion $33 Billion Consumption
5

6. 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
6

7. Canada – Your Largest & Most Secure
Russia
Energy Supplier
Angola*
Algeria*
U.S. Imports of crude oil
Iraq* & petroleum products
Nigeria*
Venezuela*
Providing
Mexico
Energy
Security
Saudi Arabia*
Canada
0 500 1,000 1,500 2,000 2,500
thousand barrels per day
7 *  OPEC Member Source: EIA, 2008 data

8. Oil Reserves by Country
300
264
250
These Fourteen Countries
Represent 91% of the Planet’s
200
175
Oil Reserves
billion barrels
138
150
115
United States
Kazakhstan
104
99 98
Nigeria*
100
Providing
Qatar*
Saudi Arabia*
China
60
Energy
Venezuela*
44
37 Security
Canada
50
Kuwait*
U.A.E.*
30
Russia
Libya*
25
Iran*
Iraq*
20 19
0
8 *  OPEC Member Source: Oil and Gas Journal, 2009

9. Oil Sands are Essential as we Transition
to a Lower Carbon Economy
• Canada is investing in
World Energy Outlook
renewable and cleaner
Primary Energy Demand 2007 fossil fuels, and committed
19%
27%
to energy efficiency
• Canada’s oil sands are part
Coal
of a global shift to heavier
21%
Oil crudes
Gas
33% Non-Emitting
• The transition to a lower
carbon economy will take
Primary Energy Demand 2030* time - oil will be a dominant Providing
fuel for decades Energy
18%
32% • This transition will involve Security
reducing emissions from
oil, as well as adopting new
30% * This scenario assumes energy sources
atmospheric CO2
20% stabilization at 450 ppm
9

10. 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 Providing
~60% of the world’s accessible Energy
Security
oil
Source: Reserves by country data from the Energy information Administration, 2009
10

11. What are the Oil Sands?
A mixture of sand, clay, water and a
heavy oil called bitumen
The second largest proven concentration
of oil in the world
170 billion barrels of proven recoverable reserves
Providing
Energy
Security
Early stages of development – 7 billion barrels
recovered to date
11

12. Regulations
Canada’s oil sands are subject to a strict regulatory regime
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
Ensuring
• Fisheries Act
Environmental
• Canadian Environmental Protection Act Stewardship
• Migratory Birds Convention Act
• Species at Risk Act
12

13. 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
industry Ensuring
Environmental
Stewardship
13

14. The Facts – Fresh Water
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
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
Ensuring
Environmental
Tailings Ponds Stewardship
• 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
14

15. The Facts – Greenhouse Gas Emissions
GHG Emissions by Canada’s GHG Emissions
Country by Sector
Other 3%
Oil Sands 5%
Canada 2% Agriculture 8%
Buildings 11%
Other Industrial 14%
United
21% States Electricity
22% Generation 17%
Australia 1%
Oil & Gas 17%
Japan 4% (excluding oil sands)
Ensuring
India 4% Environmental
Stewardship
Eurasia China Transportation 25%
9% 20%
Europe
17%
15

16. GHG Emissions in Perspective
Ensuring
Environmental
Stewardship
16

17. 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)
Ensuring
Environmental
• New Tailings Pond Technologies Stewardship
• Extract water from tailings to create a solid landscape
17

18. Toe-to-Heel Air Injection
2. Air injected down vertical 1. Steam injected down vertical
well initiates combustion and horizontal wells
5. Refining and
transport to market
3. Combustion front advances
4. Oil and vaporized water
flows from toe to heel
18 Source: Petrobank Energy

19. 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 Generating
Economic
• Several expansions and modifications
Benefits
are underway
• Providing significant jobs and
local benefits
19

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

21. Summary:
Providing Energy Security
• Safe, secure and reliable energy
• Large energy resource potential
Ensuring Environmental Stewardship
• Strict regulations
• Technology advances
Generating Economic Benefits
Generating
• Jobs and revenues across North America Economic
Benefits
• American investment flows back to the U.S.
21

22. Environment
Energy
Economy

23. Oil Sands Production Technologies
In 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
Mining:
• 20% of
resource
• 55% of current
production
• The mineable
area represents
3% of the total
oil sands area
23

24. Pipelines
Providing
Energy
Security
New proposals
Expansion of existing lines
Existing lines
Oil sands deposits
Developed oil sands
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25. Economic Benefits
Fort McMurray,
Alberta
Joliet,
Illinois
Lafayette,
Indiana
Decatur,
Illinois
Lexington,
South Carolina
Amite,
Louisiana
The 200th Caterpillar 797 hauler delivered April 2009
25