ALBERTA OIL SANDS: THE FACTS

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Clifford Murphy
5 years ago
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1 ALBERTA OIL SANDS: THE FACTS

2 Oil sands are comprised of grains of sand surrounded by a film of water and bitumen. Bitumen, a heavy and viscous oil, is solid in colder temperatures IN 209, THE WORLD IS ANTICIPATED TO USE 00 MILLION BARRELS OF OIL PER DAY CANADA IS THE MOST REGULATED, MONITORED, TRANSPARENT & SOCIALLY RESPONSIBLE OIL PRODUCING COUNTRY IN THE WORLD CANADA HAS THE THIRD LARGEST OIL RESERVES IN THE WORLD THE BASICS Sand Water Bitumen MANY OF THE PRODUCTS WE USE EVERY DAY ARE MADE FROM OIL PHONES, MEDICAL SUPPLIES, CONTACT LENSES, FURNITURE, CLOTHING, COMPUTERS, DETERGENTS, GLUES, SOCCER BALLS, BIKE TIRES, SKIS, LUGGAGE, CAMPING GEAR, CRAYONS, ROADS... GLOBAL ENERGY DEMAND WILL INCREASE 28% BY 2040 OIL DEMAND WILL REMAIN HIGH FOR DECADES Global energy consumption will increase 4 % by 200 Fossil fuels will remain the most important part of the energy mix for decades Fossil Fuels Nuclear Renewables of these reserves are located in Alberta s oil sands 80% OF RESERVES ARE IN SITU, WHILE ONLY 20% OF RESERVES ARE MINEABLE In situ ( in place ) technology is used to drill down into oil reservoirs and heat the oil so it can be pumped to the surface Mining reserves are closer to the surface and accessed by trucks and shovels

3 EMISSIONS GHG emissions associated with every barrel of oil sands have reduced by Of the top 0 exporting oil countries, CANADA IS THE ONLY COUNTRY THAT CURRENTLY HAS GHG REGULATIONS IN PLACE GLOBAL EMISSIONS Less than 0.% of global emissions come from the Canadian oil sands COGENERATION Many SAGD producers use COGENERATION to produce both steam and power together on-site, and provide low cost, reliable, green electricity for Alberta COUNTRY 3% Utilizing cogeneration versus coal REDUCES ALBERTA S CO 2 EMISSIONS BY OVER TWO THIRDS In 2007, Alberta was the first jurisdiction in North America to pass CLIMATE CHANGE LEGISLATION 990 NOW EXPORTER RANK SINCE 990 CARBON PRICING INITIATIVES SAUDI ARABIA RUSSIA 2 IRAQ 3 CANADA 4 YES UNITED ARAB EMIRATES KUWAIT 6 IRAN 7 VENEZUELA 8 NIGERIA 9 ANGOLA 0 IN ALBERTA, LESS THAN % OF IN SITU GHG EMISSIONS ARE FROM FLARING 70% to 80% OF TOTAL EMISSIONS ARE CREATED AT THE TAILPIPE

4 LAND AND WATER ON AVERAGE, IN SITU DEVELOPMENTS UTILIZE ONLY OF LAND SURFACE AREA 0 - % STEAM ASSISTED GRAVITY DRAINAGE (SAGD) uses steam injection to heat oil Impermeable Cap Rock Steam Injector Well Producer Well A WELL PAD ONLY MEASURES 4. FOOTBALL FIELDS ABOVE GROUND BUT THE OIL RESERVOIR ACCESSED BELOW GROUND MEASURES 3 FOOTBALL FIELDS THE OIL AND GAS INDUSTRY SPENT SIX TIMES MORE ON ENVIRONMENTAL PROTECTION THAN THE NEXT CONTRIBUTING INDUSTRY BY LAW, ALL LAND MUST BE RECLAIMED TO ITS NATURAL STATE m Many SAGD projects use deep, NON-DRINKABLE WATER SOURCES 80% to 9% OF WATER IS RECYCLED IN OIL SANDS DEVELOPMENT Depth in Meters *not to scale WHICH MAKES 2 TO MILLION BARRELS OF OIL

5 ECONOMY Between 207 and 2027, the oil sands industry is expected to contribute: $.7 TRILLION TO THE CANADIAN GDP $ 7.8 $4.3 billion per year $ 98. $9 billion per year IN FEDERAL TAXES IN PROVINCIAL TAXES THE CANADIAN OIL SANDS PROVIDED 206,298 JOBS IN 207 NEW HOSPITALS NEW SCHOOLS NEW INFRASTRUCTURE BY 2027, THIS IS EXPECTED TO GROW TO 46,30 JOBS Almost every region in Canada has benefitted from Alberta oil sands development through job creation and economic activity IN 207: BC $236 MB $28 SK $60 ON $3 QC $4 NL $03 FOR EVERY JOB CREATED IN THE OIL SANDS JOBS ARE CREATED IN OTHER SECTORS, SUCH AS GOODS AND SERVICES ECONOMIC GROWTH Every dollar invested in the oil sands creates about $8 of economic activity $ = $8 ECONOMIC ACTIVITY

6 MARKET ACCESS CANADA IMPORTED 670,000 BARRELS/DAY OF CRUDE OIL IN 207 USA 3,00 BBL/D CANADA NIGERIA 40,200 BBL/D NORWAY 40,200 BBL/D AZERBAIJAN 3,600 BBL/D SAUDI ARABIA 00,00 BBL/D CANADA LOSES $ 0 MILLION A DAY from a lack of diversified oil & gas markets and stands to lose more if INFRASTRUCTURE is not built % OIL IS TRANSPORTED THREE WAYS PIPELINE MARINE RAIL OF OIL & GAS PRODUCTS ARE TRANSPORTED SAFELY BY PIPELINE IN CANADA OF ALL VESSELS DEPARTING AND ARRIVING AT WEST COAST PORTS, LESS THAN % ARE TANKERS <% OIL TANKERS Other Commercial Vessels SINCE THE 930 S, OIL TANKERS HAVE MOVED REGULARLY & SAFELY ALONG CANADA S WEST COAST

7 COMMUNITIES OIL SANDS COMPANIES ARE ACTIVE IN COMMUNITIES BY PROVIDING TRAINING AND EMPLOYMENT, LOCAL ENGAGEMENT OPPORTUNITIES ON PROJECT PLANS, TAX CONTRIBUTIONS, FUNDING, AND VOLUNTEER SUPPORT TO LOCAL CHARITIES AND COMMUNITY-BASED ORGANIZATIONS IN 20 & 206 THE OIL SANDS INVESTED $48.6 MILLION IN COMMUNITY INITIATIVES in indigenous communities, such as school and youth programs, cultural events, literacy projects & other programs THE OIL SANDS SPENT OVER $7 DOING BUSINESS WITH INDIGENOUS OWNED COMPANIES FROM 203 TO 206 INDIGENOUS BUSINESS IN THE OIL SANDS IS GROWING 6 COMMUNITIES INVOLVED é 399 COMPANIES INVOLVED é72 IN 20 AND 206 THE PARTICIPATION RATE OF INDIGENOUS PEOPLE IS TWICE AS HIGH IN THE ENERGY SECTOR COMPARED TO THE TOTAL CANADIAN LABOUR FORCE INDIGENOUS OWNED COMPANIES FROM ACROSS ALBERTA HAD DIRECT BUSINESS (GOODS & SERVICES) WITH OIL SANDS OPERATORS FROM FROM

INFORMATION FOR THIS DOCUMENT WAS SOURCED FROM THE FOLLOWING: 2 3 4 6 7 8.

Canada s Oil Sands, 208, Canadian Association of 3. Canada s Oil Sands, 208, Canadian Association of 4. 00 Million Barrels Per Day, 208, Arc Energy Research Institute www.arcenergyinstitute.com.

Canada s Oil Sands, 208, Canadian Association of 8. Canada s Oil Sands, 208, Canadian Association of 3 4 2.

"Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (207-2027), 207, Canadian Energy Research Institute www.ceri.ca 3. Canadian Economic Contribution, 207, Canadian Association of 4.

alberta.ca 2 3 4 7 8 6. Oil Sands: GHG Emissions, 206, Natural Resources Canada www.nrcan.gc.ca 2. Top oil exporters: Who's pricing carbon?, 208, Canadian Association of Petroleum Producers www.capp.

cesarnet.ca 6. Supporting Co-Generation through Alberta s Climate Leadership Plan, 207, Oil Sands Community Alliance www.oscaalberta.ca 7. GHG Emissions, 207, Canada s Oil Sands www.canadasoilsands.

8 INFORMATION FOR THIS DOCUMENT WAS SOURCED FROM THE FOLLOWING: Environmental Regulation: An International Comparison of Leading Oil and Gas Producing Regions, 204, Canadian Association of Petroleum Producers & WorleyParsons 2. Canada s Oil Sands, 208, Canadian Association of 3. Canada s Oil Sands, 208, Canadian Association of Million Barrels Per Day, 208, Arc Energy Research Institute International Energy Outlook 207, 207, U.S. Energy Information Administration 6. International Energy Outlook 207, 207, U.S. Energy Information Administration 7. Canada s Oil Sands, 208, Canadian Association of 8. Canada s Oil Sands, 208, Canadian Association of "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US ( ), 207, Canadian Energy Research Institute 2. "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US ( ), 207, Canadian Energy Research Institute 3. Canadian Economic Contribution, 207, Canadian Association of 4. Economic Impacts of Canadian Oil and Gas Supply in Canada and the US ( ), 207, Canadian Energy Research Institute Alberta s Oil Sands: The Facts, 204, Government of Alberta Oil Sands: GHG Emissions, 206, Natural Resources Canada 2. Top oil exporters: Who's pricing carbon?, 208, Canadian Association of Petroleum Producers 3. Canada s Oil Sands, 208, Canadian Association of 4. Upstream Petroleum Industry Flaring and Venting Report, 206, Alberta Energy Regulator Cogeneration Options for a 33,000 BPD SAGD Facility: Greenhouse Gas and Economic Implications, 206, Canadian Energy Systems Analysis Research 6. Supporting Co-Generation through Alberta s Climate Leadership Plan, 207, Oil Sands Community Alliance 7. GHG Emissions, 207, Canada s Oil Sands 8. An Overview of Various Provincial Climate Change Policies across Canada and their Impact on Renewable Energy Generation, 206, Energy Regulation Quarterly Market Snapshot: Imports of crude oil decreased in 207, 208, National Energy Board 2. $0 Million a Day, 203, Canadian Chamber of Commerce 3. Canada s Oil Sands, 208, Canadian Association of Pipeline Industry Performance Report, 207, Canadian Energy Pipeline Association Get the facts on oil tanker safety in Canada, 206, Transport Canada ww.tc.gc.ca 6. Tanker Safety by the Numbers, 206, Transport Canada ww.tc.gc.ca Oil Sands: Land Use and Reclamation, 206, Natural Resources Canada 2. Oil Sands: Land Use and Reclamation, 206, Natural Resources Canada 3. MEG Energy Christina Lake Regional Project, 206, Alberta Energy Regulator 4. Canada s Oil Sands, 208, Canadian Association of Canada s Oil Sands, 208, Canadian Association of 7 6. Environmental Innovation: Water, 206, Canadian Association of Petroleum Producers 7. Alberta s Oil Sands: The Facts, 204, Government of Alberta Community Involvement, 206, Oil Sands Community Alliance 2. Canada s Oil Sands, 208, Canadian Association of Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas, 208, Canadian Association of Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas, 208, Canadian Association of. Canada s Oil Sands, 208, Canadian Association of 6. Canada s Oil Sands, 208, Canadian Association of

29 th USAEE/IAEE North American Conference October 14, 2010 Calgary, Alberta. Presented by Glen Schmidt, Chairman

29 th USAEE/IAEE North American Conference October 14, 2010 Calgary, Alberta Presented by Glen Schmidt, Chairman 1 Agenda Where will you get your oil? Drillable oil sands One of the best choices for crude