1 / 38

Arctic Gas Symposium American Conference Institute

Arctic Gas Symposium American Conference Institute. November 18-19, 2002 The Renaissance Houston Hotel Houston, Texas. Arctic Gas Symposium Canadian Oilfield Services Perspective. Discussion: Canadian Drilling Activity Forecast Canadian Arctic Pipeline Kyoto Protocol. Canadian Drilling

kaiyo
Download Presentation

Arctic Gas Symposium American Conference Institute

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Arctic Gas Symposium American Conference Institute November 18-19, 2002 The Renaissance Houston Hotel Houston, Texas

  2. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Discussion: • Canadian Drilling Activity Forecast • Canadian Arctic Pipeline • Kyoto Protocol

  3. Canadian Drilling Activity Forecast

  4. 2002 Forecast

  5. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Document Highlights: • Total Meters Drilled by Area, By Status (Gas, Oil, etc.) • Average Meters Drilled per Well by Area • Break-Out: Directional, Horizontal, Vertical • Break-Out: Developmental, Exploratory, Re-entry • Average License to Spud Days per Area • Average Spud to Rig Release Days per Area • Top 20 Operators by Area • License issued by Target Depth per Area

  6. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective

  7. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective 2002 Commodity Price Assumptions: • Avg. Gas price: CDN (AECO) $4.00/Mcf • Avg. Oil price: US (WTI) $26.00/barrel Wells Drilled (Rig released): 15,100

  8. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective PSAC 2002 Rig Release Forecast Breakdown: 2002 October Update • AB: 11,210 • BC: 635 • SK: 3,050 • MB: 85 • North 6012 • Other: 108 • Total: 15,100

  9. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Well Type Breakdown: 2002e Gas 61.6% Oil 28.1% Other 10.3%

  10. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Capital Expenditures (C$billions): 2002e Drill & Complete Capital Expenditures $6.0

  11. 2003 Forecast

  12. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective 2003 Highlights: • Higher well count • Strong commodity prices • Increased activity in Foothills and NEBC • Strong shallow gas drilling

  13. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective 2003 Commodity Price Assumptions: • Avg. Gas price: CDN (AECO) $4.75/Mcf • Avg. Oil price: US (WTI) $24.25/barrel Wells Drilled (Rig released): 16,500

  14. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Year to Year Comparisons (CND $Billions): Drill & Complete Year Capital Expenditures 2003e $7.0 2002e $6.0 2001e $9.0 2000e $8.0 Source: PSAC, FirstEnergy, ARC Financial

  15. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective PSAC 2002/3 Rig Release Forecast Breakdown: 2002 2003 ForecastForecast • AB: 11,210 12,350 • BC: 635 805 • SK: 3,050 3,150 • MB: 85 80 • North 60 12 15 • Other: 108 100 • Total: 15,100 16,500

  16. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Well Type Breakdown: 2003e 2002e Gas 62.3% 61.6% Oil 27.3% 28.1% Other 10.4% 10.3%

  17. Canadian Arctic Pipeline

  18. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Northern Canada • Conventional Crude Oil Reserves (Billion Barrels) • Canada 4.7 • North 60 0.1 • Gas Reserves (Tcf) • Canada 65.6 • North 60 6.0 Source: CAAP, PSAC

  19. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Northern Canada Potential • Potential Conventional Crude Oil Reserves (Billion barrels) • North 60 2.0 • Potential Gas Reserves (Tcf) • North 60 60 Source: PSAC

  20. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Northern Canada • Oil production since 1943, currently 25,000 bbl/day • Gas production since 1972, currently 0.15 Bcf/day • Approximately 1,400 wells drilled to date versus 335,000 for the rest of Canada Source: CAAP

  21. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Canadian Crude Oil North 60 • Production – 2.2 million bbl/day 25,000 bbl/day • Exports – 1.3 million bbl/day • Canadian Natural Gas • Production – 17.4 Bcf/day 0.15 Bcf/day • Exports – 10.6 Bcf/day Source: CAAP

  22. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Project Developers • Imperial Oil • Conoco Canada • Shell Canada • Aboriginal Pipeline Group

  23. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Developing onshore natural gas fields in the Mackenzie Delta (6 Tcf currently) • Taglu (3 Tcf) • Parsons Lake (1.8 Tcf) • Niglintgak (1 Tcf) Source: Imperial Oil

  24. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Project Costs • C$3 Billion – pipeline construction • C$1 Billion – field development Source: Imperial Oil

  25. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Expected Production Rates (three existing fields) • 800 Mcf/day to 1.0 Bcf/day in natural gas production • 10,000 bbl/day to 15,000 bbl/day in associated NGLs Source: Imperial Oil

  26. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Anticipated Timing • Submission of applications for regulatory approval in 2003 • Production start up in 2007 to 2008 Source: Imperial Oil

  27. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Mackenzie Gas Pipeline • Initial capacity of 1.2 Bcf/day • Expandable to 1.9 Bcf/day through additional compression facilities

  28. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Nature of Northern Work • Seasonal • Cyclical • Long Term • Expensive

  29. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective “Managing Expectations” • Producers • Local Aboriginal communities/businesses • Service suppliers • Government

  30. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective Local Communities/Business • Go slow….take the time to do it right • Lifestyle • Jobs • Training programs

  31. Kyoto Protocol

  32. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Kyoto Protocol – Canadian Situation: • Target CO2 reductions – 5% below 1990 • 1990 CO2 emissions – 607 mega tonnes (2% world emissions) • 2010 Projections - 810+ mega tonnes – (30% reduction to meet target)

  33. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Kyoto Protocol – Canadian Situation: • Ratification • Full-Soft • Canadian Parliament December 2002

  34. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Kyoto Protocol – Canadian Situation: • Ratification • Full-Soft • Canadian Parliament December 2002

  35. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective “What we need to do is end the debate about ratification and begin being clear about what the measures are that we’re going to need to implement. Nobody is going to come in and seize our property or charge us a penalty if we don’t achieve the (Kyoto) targets…..” John Manley, Finance Minister November 14, 2002 Calgary Herald

  36. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Kyoto Protocol – Poll Results: Jun ’02 Nov’02 Pro Con Pro Con Canada 86% 14% 74% 26% Ontario 87% 13% 75% 25% Alberta 72% 28% 40% 60%

  37. Arctic Gas SymposiumCanadian Oilfield ServicesPerspective • Kyoto Protocol – Canadian Situation: • Personal Views

  38. Arctic Gas Symposium American Conference Institute For further information or to subscribe to the document, please visit: WWW.PSAC.CA

More Related