Canada s Oil Sands. A Global Industry In the Global Spotlight

Transcription

1 Canada s Oil Sands A Global Industry In the Global Spotlight Canadian Association of Petroleum Producers November 2, 2011 The Global Energy Spotlight on Canada Environment Resource Investment Jobs 2

2 Oil Sands Resource, Production, Markets The Global Energy Context Significant energy demand growth: Population, standards of living Need all forms of energy: Increasing role for renewables Continuing reliance on hydrocarbons Increasing role for nonconventional crude oil & natural gas Technology is a key lever for sustainable growth Production Cost competitiveness Environmental performance Current Policies Scenario 4

3 Global Crude Oil Reserves by Country billion barrels World Oil Reserves Restricted (79%) Open to Private Sector Open to Private Sector Canada s Oil Sands 56% Other 44% Saudi Arabia Venezuela Canada Iran Iraq Kuwait Abu Dhabi Russia Libya Nigeria Kazhakhstan Qatar China United States Source: Oil & Gas Journal Dec Canadian Oil Sands and Conventional Production Forecast ( ) Actual Forecast thousand bpd Atlantic Canada In Situ Mining Conventional Heavy 500 Pentanes/Condensate Conventional Light

4 Canadian & U.S. Crude Oil Pipeline Proposals 7 US Demand for Canadian Crude Oil (2010) 8

5 Canada s Oil & Products Export to U.S. 21% 15% 16% 9 Preferred Use of Canadian Oil in Future If it were up to you, and America continued to need to import some oil, would you like to see America import a lot more of its imported oil from Canada, a little more, about the same amount as it does today, a little less, or a lot less? A lot more A little m ore About the same A little less A lot less National 56% 25% 9% 3% 2% 0% 20% 40% 60% 80% 100% Harris Interactive April

6 Potential Tanker Markets for Canadian Oil Sands Production Prince Rupert/Kitimat Persian Gulf Taiwan Taiwan Korea Japan China Japan ~ 4,500 N Miles ~ 8,600 N Miles Los Angeles Los Angeles Jose/ Jose/ SantaCruz La Cruz La Cruz ~ 5,400 N Miles Far East Target Markets U.S West Coast Competitive travel distances for Canadian supply to both markets Source: Enbridge Pipelines 11 Access to the West Coast (offshore markets) Existing Trans Mountain shipments over the dock Jan July 2011 = 45,000 b/d Peak April 2010 = 143,000 b/d Future Trans Mountain Expansion ,000 b/d Open Season underway Northern Leg 400,000 b/d Enbridge Gateway 525,000 b/d NEB process underway Community mtgs Jan-Mar 2012 Hearing begins June 2012

7 Demonstrate Environmental Performance Improvements Global Energy Related Emissions Global Emissions Canada s 2% OECD Europe 17% Non-OECD Europe & Eurasia 9% Industrial Processes & Waste 9.9% Japan 4% Transport 27.5% Agriculture & Forestry 8.4% China 24% India 5% Oil Sands 6.5% Canada Australia/New Zealand 2% Residential 5.9% Other Fossil Fuel 16.1% United States 18% Other 19% Manufacturing, Commercial & Construction 11.5% Electricity & Heat Generation 14.2% Sources: 1. U.S. Dept. of Energy/EIA 2. Environment Canada GHG emissions from oil sands: just over 1/1000th of global GHG emissions 6.5% of Canada s GHG emissions 29% reduction in intensity from

8 Full Cycle GHG Emissions 120 GHG Emissions from Production and Refining GHG Emissions from Gasoline Consumption 100 g CO2e/MJ gasoline Saudi Arabia Mexico Iraq Venezuela Nigeria US Gulf Coast California Thermal Oil Sands Wtd. Avg Source: Jacobs Consultancy, Life Cycle Assessment Comparison for North America and Imported Crudes, June North American GHG Emissions (2009) for Coal-fired Power and Oil Sands AK OR MT ND MN Legend NV AZ UT 100 megatonnes 50 megatonnes 15 megatonnes WY NM Sources: U.S. DOE/EIA & Environment Canada CO SD NE KS OK TX IA MO AR LA WI IL MS TN IN AL MI KY OH GA WV FL SC VA NC NY NJ NH Canadian oil sands Canadian coal-fired power generating plants U.S. Coal fired power generating plants 16

9 Responsible Environmental Development Reducing GHG Emissions Using less energy input Use energy more efficiently Capturing CO2 Governments investing over $3 billion partners with industry Water Increasing water recycle Using saline water for steam Land New tailings technologies accelerate reclamation Smaller footprint and faster reclamation g co2 eq./mj Oil Sands GHG Emissions/bbl 29%

10 Real People, Real Issues Improving Environmental Performance

11 Creating Jobs Economic Benefits of Oil Sands Sector over period Economic impact generated (GDP) $2.1 trillion across Canada Jobs Created 75,000 in 2010 growing to 905,000 in 2035 (direct, indirect and industry across Canada) Government Revenues Federal Tax = $311 billion Provincial Tax = $ 122 billion Alberta portion $105 billion (86%) Alberta Royalties = $350 billion The oil sands creates jobs, businesses and government revenues across Canada. Government Revenues by Source $783 billion over 25 year period Provincial Royalties Federal Taxes Provincial Taxes Source: CERI May

12 Economic Benefits & Employment Generated from Oil Sands Outside Alberta Source: CERI May American companies provide goods and services directly to the oil sands 24

13 European Suppliers to Canada s Oil Sands (1) 25 European Suppliers in Canada s Oil Sands (2) 26

14 Canada s Oil Sands: In the Global Spotlight Energy Security Currently the largest supplier of crude oil to the U.S. and growing The world sees Canada s oil supply as secure, stable and reliable Environmental Responsibility Transparency and global scrutiny Improvements through technology Jobs and Economic Growth Creating jobs Generating economic growth and government revenues 27