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THE FACTS ALBERTA OIL SANDS:

ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

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Page 1: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

THE FACTS

ALBERTA OIL SANDS:

Page 2: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

CANADA IS THE MOST REGULATED, MONITORED, TRANSPARENT & SOCIALLY RESPONSIBLE OIL PRODUCING COUNTRY IN THE WORLD

of these reserves are located in Alberta’s oil sands

CANADA HAS THE THIRD LARGEST OIL RESERVES IN THE WORLD

GLOBAL ENERGY DEMAND WILL INCREASE 28% BY 2040

MANY OF THE PRODUCTS WE USE EVERY DAY ARE MADE FROM OILPHONES, MEDICAL SUPPLIES, CONTACT LENSES, FURNITURE, CLOTHING, COMPUTERS, DETERGENTS, GLUES, SOCCER BALLS, BIKE TIRES, SKIS, LUGGAGE, CAMPING GEAR, CRAYONS, ROADS ...

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

SandWaterBitumen

THE BASICS

Global energy consumption will increase 41% by 2050 Fossil fuels will remain the most important part

of the energy mix for decades

OIL DEMAND WILL REMAIN HIGH FOR DECADES

Fossil FuelsNuclearRenewables

20502015

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

80% OF RESERVES ARE IN SITU, WHILE ONLY 20% OF RESERVES ARE MINEABLE

IN 2019, THE WORLD IS ANTICIPATED TO USE 100 MILLION BARRELS OF OIL PER DAY

Page 3: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

EMISSIONS

CLIMATE CHANGE LEGISLATION In 2007, Alberta was the first jurisdiction in North America to pass

Many SAGD producers use

COGENERATION to produce both steam and power together on-site, and provide low cost, reliable, green electricity for Alberta

COGENERATIONUtilizing cogeneration versus coal REDUCES ALBERTA’S CO2 EMISSIONS BY OVER TWO THIRDS

CANADA IS THE ONLY COUNTRY THAT CURRENTLY HAS GHG REGULATIONS IN PLACE

Of the top 10 exporting oil countries,

GLOBAL EMISSIONS

GHG emissions associated with every barrel of oil sands have reduced by

SINCE1990

31%NOW1990

Less than 0.15% of global emissions come from the Canadian oil sands

COUNTRY EXPORTER RANK

CARBON PRICING INITIATIVES

SAUDI ARABIA 1RUSSIA 2IRAQ 3CANADA 4 YES UNITED ARAB EMIRATES 5KUWAIT 6IRAN 7VENEZUELA 8NIGERIA 9ANGOLA 10

OF TOTAL EMISSIONS ARE CREATED AT THE TAILPIPE

70% to

80%

IN ALBERTA, LESS THAN 1% OF IN SITU GHG EMISSIONS ARE FROM FLARING

Page 4: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

BY LAW, ALL LAND MUST BE RECLAIMED TO ITS NATURAL STATE OF WATER

IS RECYCLED IN OIL SANDS DEVELOPMENT

A WELL PAD ONLY MEASURES 4.5 FOOTBALL FIELDS ABOVE GROUND

BUT THE OIL RESERVOIR ACCESSED BELOW GROUND MEASURES 113 FOOTBALL FIELDS

WHICH MAKES 12 TO 15

MILLION BARRELS OF OIL

NON-DRINKABLEWATER SOURCES

Many SAGD projects use deep,

LAND AND WATERON AVERAGE, IN SITU DEVELOPMENTS UTILIZE ONLY

10 - 15% OF LAND SURFACE AREA

uses steam injection to heat oil

STEAM ASSISTED GRAVITY DRAINAGE (SAGD)

ImpermeableCap Rock

SteamInjector Well

Producer Well

Depth in M

eters

320

380 *not to scale

80% to

95%

THE OIL AND GAS INDUSTRY SPENT SIX TIMES MORE ON ENVIRONMENTAL PROTECTION THAN THE NEXT CONTRIBUTING INDUSTRY

800–1200m

Page 5: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

IN 2017:

ECONOMY

ECONOMIC GROWTH Every dollar invested in the oil sands creates about $8 of economic activity

$8 ECONOMIC ACTIVITY=$1

FOR EVERY JOB CREATED IN THE OIL SANDS

5 JOBS ARE CREATEDIN OTHER SECTORS, SUCH AS GOODS AND SERVICES

BC $236

BILLIONSK

$160 BILLION

MB $28

BILLION ON $153

BILLION

QC $45

BILLION

NL $103

BILLION

Between 2017 and 2027, the oil sands industry is expected to contribute:

$1.7 TRILLION TO THE CANADIAN GDP

$157.8 BILLION IN FEDERAL TAXES

$98.5 BILLION IN PROVINCIAL TAXES

NEW HOSPITALS

NEW SCHOOLS

NEW INFRASTRUCTURE

THE CANADIAN OIL SANDS PROVIDED

JOBS IN 2017206,298

BY 2027, THIS IS EXPECTED TO GROW TO

461,305 JOBS

$14.3 billion per year

$9 billion per year

Almost every region in Canada has benefitted from Alberta oil sands development through job creation and economic activity

Page 6: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

MARINE

RAIL

PIPELINE

OIL IS TRANSPORTED

THREE WAYS

OF ALL VESSELS DEPARTING AND ARRIVING AT WEST COAST PORTS, LESS THAN

1% ARE TANKERS

<1% OIL TANKERS

Other Commercial

Vessels

CANADAIMPORTED

670,000 BARRELS/DAYOF CRUDE OIL IN 2017

NORWAY40,200 BBL/D

AZERBAIJAN53,600 BBL/D

SAUDI ARABIA100,500 BBL/D

NIGERIA 40,200 BBL/D

USA 355,100 BBL/D

CANADA

OF OIL & GAS PRODUCTS

BY PIPELINE IN CANADAARE TRANSPORTED SAFELY

from a lack of diversified oil & gas markets and stands to lose more if INFRASTRUCTURE is not built

CANADA LOSES $50 MILLION

A DAY

SINCE THE 1930’S, OIL TANKERS HAVE MOVED REGULARLY & SAFELY ALONG CANADA’S WEST COAST

MARKET ACCESS

99.999%

Page 7: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

THE OIL SANDS SPENT OVER

$7 BILLIONDOING BUSINESS WITH INDIGENOUS – OWNED COMPANIES FROM 2013 TO 2016

COMMUNITIES

IN 2015 & 2016 THE OIL SANDS INVESTED

in indigenous communities, such as school and youth programs, cultural events, literacy projects & other programs

$48.6 MILLION IN COMMUNITY INITIATIVES

INDIGENOUS BUSINESS IN THE OIL SANDS IS GROWING65 COMMUNITIES

INVOLVED

FROM 2013-2016 FROM 2013-2016

é11 é72399 COMPANIES INVOLVED

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

IN 2015 AND 2016

TRAINING AND EMPLOYMENT, LOCAL ENGAGEMENT OPPORTUNITIES ON PROJECT PLANS, TAX CONTRIBUTIONS, FUNDING, AND VOLUNTEER SUPPORT TO LOCAL CHARITIES AND COMMUNITY-BASED ORGANIZATIONS

OIL SANDS COMPANIES ARE ACTIVE IN COMMUNITIES BY PROVIDING

Page 8: ALBERTA OIL SANDS - MEG Energy › sites › default › files › MEGAlbertaOilSa… · 1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board

1. “Community Involvement”, 2016, Oil Sands Community Alliance www.oscaalberta.ca2. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca 3. “2018 Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas”, 2018, Canadian Association of Petroleum Producers www.capp.ca4. “2018 Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas”, 2018, Canadian Association of Petroleum Producers www.capp.ca5. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca6. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca

1. “Market Snapshot: Imports of crude oil decreased in 2017”, 2018, National Energy Board www.neb-one.gc.ca2. “$50 Million a Day”, 2013, Canadian Chamber of Commerce www.chamber.ca3. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca4. “2017 Pipeline Industry Performance Report“, 2017, Canadian Energy Pipeline Association www.cepa.com5. “Get the facts on oil tanker safety in Canada”, 2016, Transport Canada ww.tc.gc.ca6. “Tanker Safety by the Numbers”, 2016, Transport Canada ww.tc.gc.ca

1. “Oil Sands: Land Use and Reclamation”, 2016, Natural Resources Canada www.nrcan.gc.ca2. “Oil Sands: Land Use and Reclamation”, 2016, Natural Resources Canada www.nrcan.gc.ca3. “MEG Energy Christina Lake Regional Project”, 2016, Alberta Energy Regulator www.aer.ca 4. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca5. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca6. “Environmental Innovation: Water”, 2016, Canadian Association of Petroleum Producers www.canadasoilsands.ca7. “Alberta’s Oil Sands: The Facts”, 2014, Government of Alberta www.alberta.ca

1. “Environmental Regulation: An International Comparison of Leading Oil and Gas Producing Regions”, 2014, Canadian Association of Petroleum Producers & WorleyParsons www.capp.ca 2. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca3. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca4. “100 Million Barrels Per Day”, 2018, Arc Energy Research Institute www.arcenergyinstitute.com5. “International Energy Outlook 2017”, 2017, U.S. Energy Information Administration www.eia.gov6. “International Energy Outlook 2017”, 2017, U.S. Energy Information Administration www.eia.gov7. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca8. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca

1. "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027)”, 2017, Canadian Energy Research Institute www.ceri.ca2. "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027)”, 2017, Canadian Energy Research Institute www.ceri.ca3. “Canadian Economic Contribution”, 2017, Canadian Association of Petroleum Producers www.capp.ca4. “Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027)”, 2017, Canadian Energy Research Institute www.ceri.ca5. “Alberta’s Oil Sands: The Facts”, 2014, Government of Alberta www.alberta.ca

INFORMATION FOR THIS DOCUMENT WAS SOURCED FROM THE FOLLOWING:

1. “Oil Sands: GHG Emissions”, 2016, Natural Resources Canada www.nrcan.gc.ca2. “Top oil exporters: Who's pricing carbon?”, 2018, Canadian Association of Petroleum Producers www.capp.ca3. “Canada’s Oil Sands”, 2018, Canadian Association of Petroleum Producers www.capp.ca4. “Upstream Petroleum Industry Flaring and Venting Report”, 2016, Alberta Energy Regulator www.aer.ca5. “Cogeneration Options for a 33,000 BPD SAGD Facility: Greenhouse Gas and Economic Implications”, 2016, Canadian Energy Systems Analysis Research www.cesarnet.ca6. “Supporting Co-Generation through Alberta’s Climate Leadership Plan”, 2017, Oil Sands Community Alliance www.oscaalberta.ca7. “GHG Emissions”, 2017, Canada’s Oil Sands www.canadasoilsands.ca8. “An Overview of Various Provincial Climate Change Policies across Canada and their Impact on Renewable Energy Generation”, 2016, Energy Regulation Quarterly www.energyregulationquarterly.ca

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