slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Oil Sands: An Industry Overview Presented by: Jacob Irving, Executive Director OSDG Presented to: Fort McMurray Rotary C PowerPoint Presentation
Download Presentation
Oil Sands: An Industry Overview Presented by: Jacob Irving, Executive Director OSDG Presented to: Fort McMurray Rotary C

Loading in 2 Seconds...

play fullscreen
1 / 17

Oil Sands: An Industry Overview Presented by: Jacob Irving, Executive Director OSDG Presented to: Fort McMurray Rotary C - PowerPoint PPT Presentation


  • 142 Views
  • Uploaded on

Oil Sands: An Industry Overview Presented by: Jacob Irving, Executive Director OSDG Presented to: Fort McMurray Rotary Club Date: January 28, 2009. Athabasca Deposit Region – Status of Proposed Oil Sands Projects Under Construction/Approved/Application (Jan. 2009).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Oil Sands: An Industry Overview Presented by: Jacob Irving, Executive Director OSDG Presented to: Fort McMurray Rotary C' - rafael


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Oil Sands: An Industry OverviewPresented by: Jacob Irving, Executive Director OSDG

Presented to: Fort McMurray Rotary Club

Date: January 28, 2009

slide2

Athabasca Deposit Region – Status of Proposed Oil Sands Projects Under Construction/Approved/Application (Jan. 2009)

  • Total potential bitumen production for projects currently:
  • Under construction – 269,500 bpd
  • Under ERCB approval – 1,259,000
  • bpd
  • Under regulatory application –
  • 1,600,000 bpd

Data source: Strategy West Jan. 2009

2008 oil sands bitumen production forecast 1
2008 Oil Sands Bitumen Production Forecast1
  • Continues to grow to 5M bbl/day, consistent with past forecasts

Mining

Insitu

1Bitumen forecast for all Alberta oil sands projects – all announced case

Source: CAPP and Nichols Applied Management

despite setbacks oil sands production expected to increase 1
Despite setbacks, oil sands production expected to increase1

Actual Bitumen Production

Original Estimated Bitumen Production (Jan 08)

Adjusted Estimated Bitumen Production (Dec 08)

1Bitumen forecast for all Alberta oil sands projects – original estimate (January 2008) and adjusted estimate per public announcements (December 2008)

Source: CAPP and Nichols Applied Management

3

combined oil sands industry expenditure forecast 1
Combined Oil Sands Industry Expenditure Forecast1
  • 2008 capex and opex spending double that of 2006
  • 2008 capex forecast higher than 2007 forecast

Actual

Forecast

Construction Capital

Operating Costs

12008 construction capital expenditure forecast for all Alberta oil sands projects, including related pipeline, upgrader and co-generation projects – all announced case. 2008 operating expenditure study.

Source: Construction Capital: CAPP and Nichols Applied Management, Operating Expenditure – Nichols Study

slide6

Combined oil sands expenditures: historical and estimated1

Cap ex: $15.3 Billion

Op ex: $18.2 Billion

Actual Construction Capital Expenditures

Original Estimated Construction Capital Expenditures (Jan 08)

Actual Operating Expenditures

Original Estimated Operating Expenditures (Jan 08)

Adjusted Estimated Construction Capital Expenditures (Dec 08)

Adjusted Estimated Operating Expenditures (Dec 08)

12008 construction capital expenditure estimate for all Alberta oil sands projects, including related pipeline, upgrader and co-generation projects – original estimates (Jan 2008) and adjusted (December 2008) per public announcements.

Source: Construction Capital: CAPP and Nichols Applied Management, Operating Expenditure – Nichols Study

5

slide7
Forecast of New Permanent Operations Jobs in the Wood Buffalo Region - continues to track previous projections
  • Paralleling growth in bitumen production and driving urban population growth
  • Excludes the over 27,000 current construction workforce
  • For every permanent operations job: 3 jobs created locally, and 6 nationally1

Cumulative growth, new permanent operations jobs only - does not include construction jobs

1998 - 6,600 people directly employed by oil sands

2007 - Over 5,000 new jobs, nearly double 1998 jobs

2012 - 13,700 new jobs, triple 1998 jobs

Actual

Forecast

1Source: Nichols Applied Management

Note: 2007 data subject to verification

2007 urban population forecast
2007 Urban Population Forecast
  • Excludes the over 27,000 workers currently in work camps and hotel/motels and anticipates an 8%/yr growth through 2010

Fort McMurray urban service area/Saprae Creek. Adjusted for 2007 RMWB census

OSDG’s population forecast process has been approved by a third party audit performed by Deloitte Touche

Average annual population increase of 9% over past 7 years with 8% expected through to 2010

Source: Nichols Applied Management

osdg members continue to invest significantly in the community
OSDG Members continue to invest significantly in the community

$12 million donated in 2007 within the RMWB and $11.5 million in 2006 including:

$2.5 million to MacDonald Island recreation facility

$2.5 million to Timberlea Athletic Park

$750,000 donation to MRI campaign

$200,000 to Leadership Wood Buffalo

Ongoing support for key community service organizations including:

United Way (Fort McMurray is per capita leader in Canada)

Keyano College

Northern Lights Regional Health Centre

YMCA of Wood Buffalo Day Care

More than $52 million donated over the past 10 years.

slide10

Aboriginal participation and opportunities in oil sands development are substantial

  • Aboriginal Companies – value of contracts in 2007 - $606 million
  • Aboriginal Companies – value of contracts 1998 – 2007 - $2.6 billion
  • Aboriginal employees in permanent jobs in 2007 – 1,500+
  • Contributions to Aboriginal communities in 2007 - $3.6 million
  • Athabasca Tribal Council APCA funding 2007 - $1.6 million
  • Industry Relations Corporations funding 2007 - $8 million
environment water
Environment - Water
  • Total Annual Net Water Allocation of the Athabasca River represents less than 3.2% of flow, compared to:
      • 37% North Saskatchewan River (Edmonton)
      • 60% Oldman River (Southern Alberta)
      • 65% Bow River (Calgary)
  • Oil sands industry net water allocation is 2.2% of flow
  • Industry has consistently used less than its allocated amount
  • There has been a decrease in the overall amount of water used in mining over the past 30 years of oil sands development.
  • Saline/brackish water use in in-situ operations is the norm
  • Oil sands mining operations recycle more than 80% of the fresh water used. Cooling tower evaporation accounts for 30% of any lost water which is returned to the hydrologic cycle.
  • Intense sampling of water reveals no change in naturally occurring contaminants from oil sands development.
  • Industry is constantly researching ways to further reduce water use. It makes sense from an environmental, social and business perspective.
environment air
Environment - Air
  • The oil sands industry has reduced NOx and SO2 emissions on a per barrel basis since the beginning of oil sands production
  • Air quality in the Fort McMurray Wood Buffalo region rated “good” or better nearly 90% of the time, consistently higher than major cities like Toronto, Montreal, Vancouver, Calgary and Edmonton
  • The Wood Buffalo Environmental Association (WBEA) operates 14 active and 14 passive air monitoring stations with real time air quality data available via the internet 24/7 http://www.wbea.org/content/view/56/111/
  • The Oil Sands currently account for 5% of Canada’s Greenhouse Gas (GHG) emissions or 0.1% of global emissions
  • Barring significant change, the Oil Sands could grow to 8% of Canada’s GHG emissions by 2015
  • From a full life cycle or Wells to Wheels perspective, production methods account for approximately 15% of the total carbon output from an Oil Sands barrel. The majority of the carbon is produced by end use combustion.
slide14
Canada’s Oil Sands currently account for less than 5% of Canada’s GHG emissions or ~ 1/10th of 1% of global total

Environment - Greenhouse Gases (GHG)

Source: CAPP

13

13

ghg emissions from wells to wheels
GHG emissions: “From Wells to Wheels”

6,000

5,000

4,000

3,000

kg CO2E/1000L fuel

2,000

1,000

0

Brent

Canadian

Saudi Light*

North

Oil Sands

Venezuela*

Nigerian

Light

American

Forcados*

Import

Crude

Basket

Combustion

Transportation

Refining

Production

Oil Sands production vs. other sources (full cycle basis)

Source: T.J. McCann & Assoc. & OSDG - 2001

14

14

wood buffalo major regional challenges
Wood Buffalo - Major Regional Challenges
  • Uncertain economic climate
  • Environmental issues
      • Industry has consistently reduced water use, GHG, SO2 andNOx emissions on a per barrel basis
      • Industry is strongly monitored and regulated
      • New technology is constantly researched and applied
      • Industry needs to improve communication
  • Aboriginal relations – maintain and increase opportunities
  • Demand on infrastructure i.e. housing, transportation, utilities, health care
  • Skilled labour availability – recruitment and retention
slide17

Disclaimer

This presentation contains forward-looking information. Actual results could differ materially due to market conditions, changes in law or government policy, changes in operating conditions and costs, changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors.

For more information contact:

The Oil Sands Developers Group

613A – 8600 Franklin Avenue

Fort McMurray, AB T9H 4G8

Canada

Ph: 780-790-1999

E-mail: info@oilsandsdevelopers.ca

16