3. Oil Sands Projects in Three Deposits
Kearl
Fort Hills
Lake
Horizon Northern
Lights
Joslyn Creek
Muskeg River
Syncrude Albian
Dover Firebag
Peace River Suncor Jackpine
MacKay River Fort
Seal McMurray
Surmont
Peace River Hangingstone
Christina Lake
Long Lake (ECA)
White Sands Jackfish
Cold Lake
Foster Hilda Lake
Creek
Wolf Lake/Primrose Cold Lake
In Situ Projects Tucker Lake
Mining Projects
7. Drilled Oil Sands
80% of the oil sands resource is more than 200 feet deep
97% of the oil sands land area
Cyclic Steam Process Steam Assisted Gravity Drainage
(SAGD)
In Situ:
• No mines
• No tailings pond
• No water from the
Athabasca River
• Smaller footprint
Source: Canadian Centre for Energy Information
7
8. Example of SAGD project
Photo: ConocoPhillips - Surmont
Schematic: Devon - Jackfish 8
10. Global Energy Needs
Global economic growth will require World Energy Demand 1980 - 2030
more energy of all kinds 800
R enew ables
700 N uclear
Energy supply mix: C oal
600
Increasing role for renewables N atural Gas
Oil
Continuing reliance on hydrocarbons 500
Declining conventional means
increasing role for non-conventional 400
crude oil & natural gas 300
200
100
0
1980 1990 2000 2010 2020 2030
Source: EIA ‐ International Energy Outlook 2008
11. Global Crude Oil Reserves by Country
ls
re
ar
b s World Oil
300 li on r v e Reserves Accessible
264 0 b il re s e Oil Reserves
s 17 nds
de il sa
250 cl u o
I n of State owned
or controlled Canada’s
Oil Sands 53%
200 175 Accessible
billio n barrels
Other
Other
Other
Other
Accessible
47%
Accessible
Accessible
136
150 Accessible
Reserves
Reserves
Reserves
Reserves
115
102 99
92
100
60
44 36
50 30
21
0
S a u d i A r a b ia Ca n a d a Ir a n Ir a q Ku w a it V e n e z u e la A b u Dh a b i R u s s ia Lib y a Nig e r ia Ka z h a kh s t a n Un it e d
Sta tes
Source: Oil & Gas Journal Dec. 2008
15. Guiding Principles for Oil Sands Development
People
We will provide a safe environment for our employees, contractors and the
communities where we operate.
We will provide employment and business opportunities for regional
communities, including Aboriginal peoples.
We will consult with directly-affected stakeholders though all stages of our
operations.
Air
We will design and operate our facilities to ensure that regional air quality
continues to exceed provincial air quality objectives.
We will continue to reduce greenhouse gas emissions per barrel of production
by improving our energy efficiency and by developing new technologies.
16. Guiding Principles for Oil Sands Development
Water
We will continue to reduce the amount of fresh water required per barrel of
production by improving water recycle rates, using non-potable water sources
where feasible, and by developing new technologies.
We will safeguard the quality of regional surface and groundwater resources.
Land
We will mitigate our impact on the land while maintaining regional ecosystems
and biodiversity.
We will progressively reclaim all lands affected by oil sands operations,
returning them to self-sustaining landscapes.
17. Managing Climate Change
Global Energy Related Emissions By Country
The expected growth in oil sands Europe
17%
Eurasia
production will add to GHG emissions in China 9%
20% Japan
Canada, but improvements are ongoing 4%
India
GHG intensity reduced by 33% from 4%
Canada
1990 to 2007 2%
Australia
1%
Government regulations to limit GHG
emissions will continue improvements United States
Other
21%
Significant investments in carbon capture 22%
and storage will play a role
GHG emissions from oil sands are:
5% of Canada’s GHG emissions
0.5% of United States GHG emissions
less than 0.1% of global GHG emissions
18. Canada’s Greenhouse Gas Policies
Alberta Government Federal Government
Legislation passed, July 2007 Reductions of 20% from 2006
Requires immediate 12% reduction by 2020
in emission intensity for large Focus on technology
emitters
Compatible with US
Compliance mechanims:
Up to $1 billion for CCS
Physical Reductions
$15/tonne CO2 levy into
Technology Fund
Offsets
$4 Billion investment
$2 Billion to Carbon Capture
Shell’s Quest CCS Project
$2 Billion to Public Transit
19. Full Cycle GHG Emissions
140 Common U.S. U.S. Oil Sands
Conventional Oil Imports Domestic
120
114 116 113
108 Range of Common
100 106 104 105
102 102 102 U.S. Imported Crude Oils
98
On a life cycle basis, oil
g CO2e/M J gasoline
80
sands have similar GHG
emissions to
60 other sources of oil
(likely future scenario)
No current production
oil sands production
oil sands production
oil sands production
Approx 40% of 2008
Approx 55% of 2008
Full cycle emissions or
Approx 5% of 2008
40 “wells to wheels” is the
appropriate measure to use
20 in setting carbon policies
G H G E mis s io n s f ro m
P ro d u ct io n a n d R e f in in g
0
S au d i M e x ic o Iraq V e n e zu e la N ig e ria U S G u lf C alifo rn ia O il S an d s In sit u o il In sit u o il In sit u o il G H G E mis s io n s f ro m G a s o lin e
C o n s u mp t io n
C o ast T h e rm al M in in g - san d s - san d s - san d s -
U p g rad e d D ilu e n t U p g rad e d B it u m e n
B it u m e n B it u m e n B it u m e n
Source: Jacobs Consultancy, Life Cycle Assessment Comparison for North America and Imported Crudes, June 2009
22. Footprint and Reclamation
In situ operations have a much smaller
footprint, with road and pipeline
infrastructure being the most obvious impact
Impact about 15% of lease surface area
Oil Sands mining area is limited
Mineable area represents one-tenth of 1% of
Canada’s boreal forest ConocoPhilips Surmont In Situ Project
After 40 years of development, the area
disturbed by mining is about 530 square
kilometres - an area about 1/10th the size of
metropolitan Toronto
Companies must restore land to productive status
- land reclamation is a condition of approval
Reclamation underway but it takes years - 12%
of mined area to date is actively being reclaimed Syncrude Mine Reclamation
and 7.5 million seedlings have been planted
Alberta holds $820 million in reclamation
security bonds from industry
23. Water use from Alberta Rivers
Source: Alberta Environment: state of the basin website
23
25. Tailings Containment and Settling Ponds
Source: OSDG
Research on dry and consolidated tailings
Tailings Reduction Operations - Suncor CO2 injection into tailings – CNRL Horizon
26. Drilled Oil Sands – Water Use
n
io
u ct
od
rP
ds
an
il S
/year)
O
itu
3
s
Volume (Millions m
In
Saline Water
1985 1990 1995 2000 2005
Source: GEO 2009 and CAP2008
WA, P,
27. New Technology - Reducing Impacts
Less energy = less GHG
Low energy extraction
35ºC instead of 80ºC = 1/3 less energy
Syncrude Low Energy Extraction – Aurora Mine
Less water:
THAI process uses underground combustion
rather than steam
Using solvent to reduce the need for both
water and energy (steam)
Using electricity instead of steam to warm
the bitumen underground
Petrobank THAI process
Saline (non-potable) water:
Some new projects use 100% saline water
Other in situ oil projects significantly
increasing saline water use
Devon’s Jackfish In Situ project
28. Third Party Studies
Cambridge Energy Research Associates
Growth in the Canadian Oil Sands: Finding the New Balance
Council on Foreign Relations
The Canadian Oil Sands: Energy Security vs. Climate Change
Alberta Energy Research Institute/Jacobs Eng.
Comparison of life cycle GHG among crude oil types
Canadian Energy Research Institute
Economic Impacts of the Petroleum Industry
$1.7 trillion in economic benefit created
30. Economic Benefits of Oil Sands
(in Canada over the next 25 years)
Economic impact generated
= $1.7 trillion (GDP)
Employment created
= 11.4 million person-years
112,000 jobs rising to 500,000 jobs
over 20 years
Government Revenues
= $491 Billion F e d e ra l T a x e s
Federal Tax = $188 billion P ro v in c ia l T a x e s
Provincial Tax = $118 billion
P ro v in c ia l
Alberta = 80% of total R o ya ltie s
Alberta Royalties = $185 billion
$7.4 billion per year
31. Impact of Oil Sands on US Economy and Jobs
National Impacts
2010 2015 2020 2025
($US Billion)
U.S. Gross
Domestic Product 11.5 34.0 40.4 42.2
National Impacts 2009- 2011- 2016- 2021-
(Person Years) 2010 2015 2020 2025
U.S. Employment
(Thousand)
172 343 88 22
CERI 2009
32. Oil Sands Benefits by State
Illinois
55% of Illinois’ oil comes from Canada
In Illinois, oil Sands creates:
$1.45 billion (2010-2025) in additional GDP
14,600 person years employment (2011-2015)
Minnesota
83% of Minnesota’s oil comes from Canada
In Minnesota oil sands creates:
$588 billion (2010-2025) in additional GDP
6800 person years employment (2011-2015)
33. Examples of Oil Sands partnerships
Across North America
Integrated trade means that funds used to purchase
crude oil from Canada are more likely to be spent in
the U.S.
Oil Sands Heavy Hauler Trucks
The 200th Caterpillar 797 hauler delivered April 2009
The engine is made in Lafayette, Indiana; the largest
frame component is cast in Amite, Louisiana, the cab is
made in Joliet, Illinois welded together and the engine is
installed in Decatur, Illinois; huge Michelin tires are
made in Lexington, South Carolina
The dump body and final assembly takes place at the
mine site near Fort McMurray, Alberta
Oil Pipeline Construction
Billions of dollars of pipelines being built
eg. Enbridge Clipper and TransCanada Keystone
Using steel and creating jobs
Major regional economic stimulus
Refinery expansions underway
Several expansions and modifications are underway
Providing significant jobs and local benefits
