Oil and Turmoil: The Role for Technology, Regulation and Communication

Gerry Protti

Alberta School of Business Alumni Association Annual Dinner

Nov 2, 2010 – Edmonton, Alberta

Oil and Turmoil

1. The Size of Alberta’s Resource in Perspective

2. How Significant is the Turmoil?

3. What are Industry Members (and Albertans) doing about

the Issues?

The Advance of Technology and Process Change with implications

for Air, Land and Water Use

The Role of Regulation

The Communication Imperative… Forever

Global Crude Oil Reserves

Canadian & US Crude Oil Pipeline Proposals

Source: CAPP

Economic Benefits of Oil Sands

Source: CERI 2009, over next 25 years

Economic Benefits of Oil Sands

Source: CERI 2009

Aboriginal Participation

Source: CAPP

Public Opinion Benefits

Source: CAPP

The Turmoil

Source: CAPP

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Public Opinion Challenges

Source: CAPP

Public Opinion Goal

Source: CAPP

Reducing Greenhouse Gas Emissions

Source: CAPP

Technology Solutions

Source: CAPP

Impact of Tech Development in SAGD World

Source: Cenovus

Cenovus’s Solvent Aided Process (SAP)

Source: Cenovus

SAP versus SAGD metrics

30% production rate improvement

15% incremental total oil recovery

3% reduction in annual fuel gas usage

0.05 bbls solvent (butane) purchased per bbl

bitumen

30% increase to initial capital

10% decrease in annual sustaining capital

5 - 10% reduction in non-fuel operating cost

~$1.00/bbl netback uplift

Environmental benefits

Lower SOR and emission intensity

Lower water usage & footprint

Steam & solvent (SAP)

Steam only (SAGD)

Milestones

2000 – 2001 Senlac SAP pilot

2004 – 2005 Christina Lake SAP pilot

2009 – 2011F Christina Lake isolated test

2010 Q3 SAP & SAGD Narrows Lake

2010 – 2011F Pilot Foster Creek pad SAP

Footprint and Reclamation

Source: CAPP

Oil Sands Tailings - Mining

Source: CAPP

Oil Sands Water Use

Source: CAPP

Oil Sands are Regulated

Source: CAPP

Water – Regulated and Monitored

Source: CAPP

Oil Sands Information

Source: CAPP

Listening and Communicating

Source: CAPP

Communicating with the Public

Source: CAPP

Global Energy Related GHG Emissions

Source: CAPP

North American GHG Emissions - Production

Land Use and Reclamation in Boreal Forest

Source: CAPP

Expo 2017

Theme: Energy and Our Planet

Global discussion on energy, challenges, and solutions

to meet future energy needs

Opportunity to position Canada and Alberta as

technology leaders

Challenge the world to think about energy differently

and more broadly