Canada s Oil Sands. April 7, 2014

Transcription

1 Canada s Oil Sands April 7,

2 Canada s Energy Development Energy Economy Environment 2

3 Global Primary Energy Demand Energy Demand Growth All Forms of Energy, Developed Responsibly Population growth Standard of living Ongoing high reliance on hydrocarbons Increasing role for renewables Shift to non-conv. oil & natural gas 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 million tonnes oil equivalent Other Renewables Bioenergy Hydro Nuclear Natural Gas Oil Coal Technology - Key Lever for Sustainable Growth Production Cost competitiveness Environmental performance 4,000 2,000 0 Source: International Energy Agency New Policies Scenario 2011 World Energy Outlook Source: International Energy Agency World Energy Outlook 2013 Ongoing reliance on fossil fuels (share of energy consumption): 2011: 82% 2035: 76%

4 Two Methods of Oil Sands Recovery Photo: ConocoPhillips - Surmont Drilling: 80% of reserves Mining: 20% of reserves Schematic: Devon - Jackfish

5 Global Crude Oil Reserves by Country World Oil Reserves Open to Private Sector billion barrels Restricted (81%) Open to Private Sector Venezuela Saudi Arabia Canada Iran Iraq Kuwait Abu Dhabi Russia Libya Nigeria United States Kazakhstan Qatar China Oil Sands 53% Other 47% Source: Oil & Gas Journal Dec & AER

6 Canadian Oil Sands (Bitumen and SCO) & Conventional Production

7 Canada and U.S. Demand for Crude Oil by Source Thousand Barrels per Day

8 Access to Markets Pipeline Expansions in Development

9 WCSB Takeaway vs Supply Forecast

10 Crude Oil Rail Exports Western Canada vs. North Dakota Opportunities: Relatively quick Flexibility Less diluent Use in both directions Challenges: Recent safety Higher costs Limited loading and tank car availability Source: Peter s & Co. Limited = Sept

11 Oil Sands Environmental Performance 11

12 Joint Oil Sands Monitoring Increased sites (87 to 172) More substances Greater sensitivity Broader geography Standard methodology Publicly available data $50 million per year In addition to required project monitoring will be one of the most progressive and comprehensive environmental monitoring programs of any industrially-developed region in the world. 12

13 Greenhouse Gas Emissions China 26% Global CO2 Emissions Canada s 2% USA 18% European Union 12% Japan 4% Canada 2% Emission Intensive & Trade Exposed Industries 11% Buildings 12% Agriculture 10% Waste & Others 7% Oil Sands 7.8% India 6% Australia/New Zealand 1% Other Upstream 11% Other 26% Russian Federation 5% Transportation 24% Electricity 13% Other Oil & Gas 4% Sources: 1. United Nations Statistics Division (2010 Data) 2. Environment Canada (2011 Data) Note: Global split based on CO2 emissions, Canada s split based on GHG emissions GHG emissions from oil sands: Accounted for 0.14% of global GHG emissions 7.8% of Canada s GHG emissions 26% reduction in intensity from 1990

14 Full-cycle GHG Emissions Oil Sands & U.S. Refined Crudes U.S. Barrel Refined in the U.S. (2005) Venezuela - Petrozuata US -Kern River Cdn Oil Sands: Mining SCO Nigeria - Bonny Light Canadian Oil Sands: SAGD Dilbit Iraq-Basra Light Cdn Oil Sands: Low SOR SAGD Dilbit US - Mars +5% Venezuela Bachaquero Mexico - Maya Cdn Oil Sands: Mining Dilbit (PFT) Iraq - Kirkuk Blend US Barrel Refined in the U.S. (2005) Saudi Arabia - Arab Light Brazil - Tupi North Sea - Forties +2% Well-to-tank Refined product Combustion Source: IHSCERA Oil Sands Dialogue Getting the Numbers Right kgco 2 e per barrel of refined product

15 Tailings Management Alberta law requires all land disturbed by oil sands operations be reclaimed, including tailings ponds Oil sands operators are working to meet the thresholds set out by the AER Industry and is working to accelerate the reclamation of the resulting tailings deposits so that they can be incorporated into the final reclaimed landscape. Suncor: TRO Suncor: Pond 1 Reclamation CNRL: CO2 addition Syncrude: $1.9 Billion Tailings Centrifuge plant 15

16 Canada Oil Sands Innovation Alliance (COSIA) Accelerating the pace of improvement in environmental performance in Canada s oil sands through collaborative action and innovation COSIA Focus Areas: GHG, Land, Water, Tailings Shared 560 technologies that cost $900 million to develop 185 projects underway with a cost of over $500 million Tailings Accelerated Dewatering Cross Flow Filtration Filter Press Project Tailings Centrifuge Greenhouse Gases The Algae Project Gas-Turbine Once Through Steam Generator: Co-Generation Waste Heat Recovery Land reclamation Caribou Habitat Restoration Oil Sands Vegetation Cooperative 16 Topsoil Reconstruction Filter press project Waste Heat Recovery Oil Sands Vegetation Cooperative

17 Transportation Safety Pipeline Integrity & operations Rail Safety & response Marine Prevention, response and recovery tankers/ports 17

18 Industry Capital Spending Cdn $billions Northern Canada E 2014E $0.1 $0.5 $0.7 Oil & Gas Investment Spending: 2012: $67 billion 2013: $69 billion (estimate) 2014: $71 billion (estimate) Oil Sands E 2014E $27 $27 $29 Western Canada E 2014E $37 $39 $38 East Coast Offshore E 2014E $2.4 $3.0 $3.5 Note: Excludes spending on mergers & acquisitions 18

19 The Oil and Natural Gas Industry A Key Driving Force in the Canadian Economy Industry will invest $71 billion in Canada in 2014 Largest single private sector investor in Canada Payments to governments average about $18 billion per year Oil and gas accounts for 20% of value on Toronto Stock Exchange Oil and Gas accounts for close to 18% of exports Industry employs more than 550,000 in Canada (direct & indirect). Upstream Oil & Gas Auto Manufacturing Forestry & Logging Wheat & Barley Uranium 19

20 Suppliers across Canada

21 Canada s Energy Development Energy Economy Environment 21