Alberta s Role in North American

Transcription

1 Alberta s Role in North American Energy Security Honorable Iris Evans Minister of International and Intergovernmental Relations Province of Alberta September 16, 2010

2 U.S. Oil Supply 2009 Sources of US Imported Crude Total US Demand: 18.7 mmb/d Nigeria 9% Angola 5% Iraq 5% Total US Imports: 9.1 mmb/d Other OPEC 8% Venezuela 11% Other Non OPEC 17% Saudi Arabia 11% Source: US Energy Information Administration, National Energy Board of Canada Mexico 12% Rest of Canada 6% Alberta 17%

3 U.S. Oil Supply Perhaps the greatest impact of expanded oil sands exploitation would be a diversion of revenues away from adversarial governments. Council on Foreign Relations: The Canadian Oil Sands: Energy Security vs. Climate Change, May 2009 The oil sands are sourced from a politically stable and secure country adjacent to the United States. Cambridge Energy Research Associates: Growth in the Canadian Oil Sands: Finding the New Balance, May 2009

4 The Oil Sands

5 What are the oil sands? Naturally occurring mixture of sand, clay, water and bitumen Bitumen is separated from the sand and upgraded to refinery ready crude oil

6 Alberta s oil sands Oil sands deposits underlie 54,900 square miles Mineable deposits = 1,853 square miles (about 1.25% of Alberta s Boreal forest area) Land disturbed to date for mining = about 232 square miles

7 Alberta s oil sands Alberta s oil sands contain 170 billion barrels of recoverable oil Oil sands production (2009): 1.5 million b/d Estimated oil sands production in 2019: 3.2 million b/d Conventional oil reserves: 1.4 billion barrels Conventional oil production (2009): 461,300 b/d Second largest proven oil reserves in the world Has become a global energy player Attracts billions of dollars of investment

8 Impact on the U.S. economy Increase in U.S. GDP (US$): 2010 = $11.5 billion 2015 = $34.0 billion 2020 = $40.4 billion 2025 = $42.2 billion Annual Average = $31.24 billion Source: CERI, Impacts of Canadian Oil Sands Development on the U.S. Economy, Oct 2009

9 Impact on U.S. jobs Incremental employment is estimated to be (in person years): = 172, = 343, = 88, = 22,000 Source: CERI, Impacts of Canadian Oil Sands Development on the U.S. Economy, Oct 2009

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11 Environmental responsibility Provincial Energy Strategy 20-year Oil Sands Strategy Climate Change Strategy Water for Life Strategy t Land-use Framework

12 Climate change law Alberta has a price on carbon Three compliance options Physically reduce emissions Purchase accredited Alberta offset $15 dollar/tonne into technology fund that supports development and application of transformative technologies $187 million into the Climate Change and Emissions Management Fund $71 million to 16 clean energy projects

13 Carbon capture and storage (CCS) Key element of Alberta s Climate Change Strategy $2 billion for large-scale CCS projects CCS project at Scotford oil sands upgrader: 1.2 million tonnes/yr Coal into synthetic gas into low-emissions electricity: 1.3 million tonnes/yr Fully integrated project at coal fired power plant: 1 million tonnes/yr Pipeline to transport CO2 for enhanced oil recovery: 1.6 million tonnes/yr

14 Lifecycle GHG emissions 120 g CO2e/MJ gaso oline Range of Common U.S. Imported Crude Oils On a life-cycle basis, oil sands have similar GHG emissions s to other sources of oil 20 GHG Emissions from Production and Refining 0 Saudi Mexico Iraq Venezuela Nigeria Imported Arabia Wtd. Avg. US Gulf Coast California Heavy Oil Sands Avg GHG Emissions from Gasoline Consumption Source: Jacobs Consultancy and Lifecycle Associates, Life Cycle Assessment Comparison for North America and Imported Crudes, July 2009

15 Land reclamation Reclamation is a condition i of project approval About 26 square miles of disturbed land is reclaimed or under active reclamation Industry has planted more than 7.5 million tree seedlings towards reclamation efforts

16 Oil Sands Reclamation: Before and After

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18 Looking to the future Collaboration is key Pragmatic approach to energy/environment legislation Understanding of oil sands development Advocates to talk about the oil sands

19 In summary Alberta is a safe, secure, responsible and growing supplier of energy to the U.S. Oil sands provide economic and security benefits for North America Alberta shares your commitment to environmental responsibility

20 Questions? Thank you!