Vancouver board of trade oil & gas markets

Canada’s Natural Gas & Oil Resources on a Global Stage

1 #233082

Vancouver Board of Trade

November 5, 2013

Enabling Responsible Development

2

Source: Cenovus

Canadian Crude Oil

Global Crude Oil Reserves by Country

26 25 21303748

8092102

141155

173

265298

0

50

100

150

200

250

300

Vene

zuela

Saud

i Ara

bia

Cana

da Iran

Iraq

Kuwa

it

Abu

Dhab

i

Russ

ia

Libya

Nige

ria

Kazh

akhs

tan

China

Qatar

Unite

d St

ates

billio

n barr

els

Source: Oil & Gas Journal Dec. 2012

Includes 169 billion barrels

of oil sands re

serves

Restricted(81%)

Open to Private Sector

Oil Sands

56%

Other 44%

World Oil ReservesOpen to

Private Sector

4

Canadian Crude Oil Production Forecast

5

2012 Canada and U.S. Demand for Crude Oil by SourceThousand Barrels per Day

6

0

2

4

6

8

10

12

14

China India EuropeanUnion

UnitedStates

Japan Korea

mm

b/d

Net oil imports in the New Policies Scenario

2005201120202035

Changing Global Oil Import Needs

Source: IEA World Energy Outlook 2012, EIA

7

Access to Markets – Pipeline Expansions in Development

WCSB Takeaway vs Supply Forecast

9

10

CanadianNatural Gas

North American Unconventional Gas Resources

11

Current Disposition of W. Canada’s Natural Gas Production (2012)

TransCanada TransmissionMainline

TQ&M

Westcoast

KernRiver

Northwest NorthernBorder

TransCanada Alberta (NGTL)

NGPL

ANR

ANREl Paso

PG&E

SoCal

PGT

TexasEastern

Panhandle

Algonquin

Transcontinental

ANG/Foothills

NGPL

Northwest Foothills

El Paso

Transwestern

Trailblazer

M&NE

CNGIroquoisPNGTS

Alliance

LakesGreat

VectorWest

2.5 bcf/d

Mid West4.8 bcf/d

East1.1 bcf/d

Domestic 5.3 bcf/d

12

● LNG for export● Oil Sands growth● Gas-fired power and cogeneration● Vehicles – CNG/LNG

Natural Gas – Market Opportunities

13

Industrial21.5%

Residential13.3%

Commercial12.1%Electricity

Generation13.4%

Vehicles0.2%

LNG19.2%

Oil Sands20.3%

NATURAL GAS DEMAND BY SECTOR - 2035

Source: The Conference Board of Canada December 2012

0

5

10

15

20

25

30

35

40

45

50

2010 2015 2020 2025 2030 2035 2040

ChinaTaiwanIndiaSouth KoreaJapan

Imports to Asian Economies with Growing Natural Gas Requirements (Bcf/d)

14Source: EIA 2013 International Energy Outlook, Press reports, CAPP

Growth of 27 Bcfd or 167%

● Kitimat LNG (Chevron, Apache) 1.4 Bcf/d Permits received; awaiting investment decision

● BC LNG Export Co-operative 0.125 Bcf/d Permits received

● LNG Canada (Shell, KOGAS, Mitsubishi, PetroChina) 2.0 – 3.2 Bcf/d Feasibility stage; applied for some permits

● Pacific Northwest LNG (Progress/Petronas, Japex) 2.0 Bcf/d (Merger approval granted) Completed feasibility, progressing to pre-FEED

● Nexen/Inpex Conducting feasibility

● Prince Rupert LNG (BG Group) 3.0 Bcf/d Advancing feasibility, applying for permits

● AltaGas/Idemitsu Kosan 0.27 Bcf/d Conducting feasibility

● ExxonMobil/Imperial Oil (WCC LNG Ltd) 4.0 Bcf/d Applied for export licence

● Woodfibre LNG 0.3 Bcfd Applied for export licence

Canadian LNG export projects in development

15

Total potential new demand ~ 13.0 Bcf/dExpressions of interest to proceed with a project have also been made by; Woodside Petroleum & South Korea E&S

● Ports of Kitimat and Prince Rupert are closer to Asia than any other North American port 8 sailing days to Japan 9 sailing days to Korea 11 sailing days to China

Canada’s Export Opportunity

16

Source: Apache Corporation

Canadian Production – Market Constrained Case and New Market Opportunity Case

Eastern Canada

CBM

Western Canada Unconventional

Western Canada Conventional

Market Constrained Case

New Market Opportunity Case

17

B. C. Production –– Market Constrained Case and New Market Opportunity Case

18

Market Constrained Case

New Market Opportunity Case

Safe, Environmentally Responsible● Production

GHG emissions reductions Water – oil & natural gas Land & wildlife

● Transportation Pipelines & Rail

• Integrity & operations Marine

• Prevention, response and recovery – tankers/ports

● Regulation and Monitoring Enhanced monitoring –

more sites, more transparency & reporting

19

Jobs andEconomic Benefits

What’s in it for us?

● $5.2 billion invested in 2012● $6.7 billion invested in 2011● $82 billion invested up to 2012● $13.5 billion spent on acquisitions in B.C. gas plays by

foreign companies from 2010 to date

Investment in B.C.’s natural gas sector

22

0

2

4

6

8

10

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Billi

on d

olla

rs

Capital Investment in British Columbia

BC Benefits

23

Watson Gloves Ideal Welders Wright’s FoodService

Northern LightsCollege

Direct Suppliers in British ColumbiaCurrent survey shows just under 400 companies

Being Part of the Discussion

25

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