Innovation in the Oil Sands Industry

Transcription

1 Canada s s Oil Sands Innovation in the Oil Sands Industry Canadian Association of Petroleum Producers February 10, 2012 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 Includes 170 billion barrels of oil sands reserves 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 Top 10 World Crude Oil Producers in 2010 Russia Saudi Arabia USA Iran China Canada 2010 Mexico 2025 Nigeria UAE Kuwait Million Barrels per Day Sources: U.S. Dept. of Energy, Energy Information Administration & CAPP

4 Two Methods of Oil Sands Recovery Photo: ConocoPhillips - Surmont Drilling: 80% of reserves Mining: 20% of reserves Schematic: Devon - Jackfish 7 Canadian Oil Sands and Conventional Production Forecast ( ) Actual Forecast thousand bpd Atlantic Canada In Situ Mining Conventional Heavy 500 Pentanes/Condensate Conventional Light

5 Canadian & U.S. Crude Oil Pipeline Proposals 9 Canada s Oil & Products Export to U.S. 21% 15% 16% 10

6 Potential Tanker Markets for Canadian Oil Sands Production Prince Rupert/Kitimat Persian Gulf Korea Japan China Japan Taiwan Taiwan 3,840 ~ 4,500 N Miles ~ 8,600 N Miles 1,400 N Miles Los Angeles Los Angeles 1,790 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 Environmental Performance Improvements

7 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 Full Cycle GHG Emissions 120 GHG Emissions from Production and Refining GHG Emissions from Gasoline Consumption g CO2e/MJ gasoline Saudi Arabia Mexico Ira q 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

8 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 15 Technology Solutions Energy Efficiency Low energy extraction 35ºC instead of 80ºC = 1/3 less energy Working on lower temperatures Underground combustion rather than steam Petrobank Whitesands THAI process Syncrude Low Energy Extraction Aurora Mine Additives to reduce the need for both water and energy (steam) LASER (Imperial), SAP (Cenovus), N-Solv SC-SAGD (Laricina), SOLVE (Statoil/PTRC) Electricity instead of steam to warm the heavy oil underground ET-Energy, Shell Petrobank THAI process Carbon Capture and Storage Most effective at upgraders/hydrogen plants Shell Quest in development phase Solvent/steam processes (Laricina diagram)

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% Imperial Oil - LASER

10 Oil Sands Water Performance Mining 3.1 barrels of fresh water per barrel of oil, with 80-90% recycled (2010 data) Currently use 0.5 per cent of the annual flow of the Athabasca river In situ (drillable) 0.4 barrels of fresh water per barrel of oil, with 90-95% recycled (2010 data) No water from Athabasca River Shift to using non-potable (saline) sub-surface aquifers Water Regulated and Monitored Current evidence on water quality impacts on the Athabasca River system suggest that oil sands development activities are not a current threat to aquatic ecosystem viability. Source: The Royal Society of Canada

11 Technology Solutions Greater Recovery and Less Fresh Water Additives to reduce the need for both water and energy (steam) LASER (Imperial), SAP (Cenovus), N-Solv SC-SAGD (Laricina), SOLVE (Statoil/PTRC) Non-aqueous extraction ET-Energy, Shell, Petrobank Devon s Jackfish Project Saline water instead of fresh water Devon Energy Jackfish Project Collaboration on tailings research Oil Sands Tailings Consortium (OSTC) Suncor TRO Tailings Management Process Devon Jackfish

12 Land Use and Reclamation Reclamation and Restoration 24

13 Syncrude Reclamation Oil Sands Mining - Tailings Ponds A mixture of water, clay, sands and residual bitumen Used to settle solids and recycle water - 80%+ recycle ratio Research to increase recycle, reduce pond size Consolidated tailings CO2 treatment (CNRL) Thickeners, Paste/Dry tailings Tailings Reduction (Suncor) Atmospheric Fines Drying (Shell) Centrifuge (Syncrude) Oil Sands Tailing Research Facility University of Alberta Suncor Pond 1 First tailings pond (Suncor) surface reclamation in 2010 Suncor Pond 1 Reclamation Sept 2010

14 Tailings Containment and Settling Ponds Dry tailings after centrifuge processing Research on dry and consolidated tailings Tailings Reduction Operations - Suncor CO2 injection into tailings CNRL Horizon Suncor TRO

15 Improving Environmental Performance Responsible Canadian Energy Oil Sands Report Principles & Performance Measurement & Reporting Transparency

16 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

17 Economic Benefits & Employment Generated from Oil Sands Outside Alberta Source: CERI May Alberta s oil sands: A nation-wide economic driver 34

18 2400 American companies provide goods and services directly to the oil sands 35 Ohio Suppliers to Canadian Oil Sands Projects States in PADD II Region IL IN IA KS KY MI MN MS NE ND SD OH OK TN WI Total Number of Suppliers

19 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 37