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0 2000 4000 6000 8000 10000 12000 14000 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 P roduction (P etajoules) actual forecast NGLs Coalbed methane Hydro, wind, and other renewables Conventional natural gas Mined and in situ bitumen Conventional heavy oil Conventional L&M oil Coal Total energy production in Alberta Figure 1

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Hydro, wind, and other renewables. forecast. actual. Conventional heavy oil. Figure 1. Total energy production in Alberta. NGLs. Coalbed methane. Conventional natural gas. Mined and in situ bitumen. Conventional L&M oil. Coal. actual. forecast. Non upgraded bitumen. SCO. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: actual

0

2000

4000

6000

8000

10000

12000

14000

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Prod

uctio

n (P

etaj

oule

s)

actual forecast

NGLs

Coalbed methaneHydro, wind, and other renewables

Conventional natural gas

Mined and in situ bitumen

Conventional heavy oil

Conventional L&M oil

Coal

Total energy production in AlbertaFigure 1

Page 2: actual
Page 3: actual

Figure 3. Alberta supply of crude oil and equivalent

0

100

200

300

400

500

600

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Supp

ly (1

03 m

3 /d)

actual forecast

Non upgraded bitumen

Light-medium

SCO

Pentanes plusHeavy

Page 4: actual

0

50

100

150

200

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Prod

uctio

n an

d D

eman

d (1

09 m

3 )

Residential demand Commercial demand Other Alberta demand Alberta gas removals

actual forecast

Figure 4 Total marketable gas production and demand

23% 26% 33% 44% 58%

Page 5: actual

0

5000

10000

15000

20000

25000

1948

1953

1958

1963

1968

1973

1978

1983

1988

1993

1998

2003

2008

num

ber o

f wel

ls d

rille

d

Crude Oil Bitumen* Gas** Other***

Figure 5. Drilling Activity in Alberta, 1948 – 2008

Bitumen* - includes producing and evaluation wellsGas** - includes CBM wellsOther *** - includes unsuccessful, service, and suspended wells

Page 6: actual

Figure 6. Alberta Conventional Crude Oil Production and Price

0

75

150

225

300

375

450

1938

1943

1948

1953

1958

1963

1968

1973

1978

1983

1988

1993

1998

2003

2008

Prod

uctio

n (1

03 m3 /d

)

$0

$100

$200

$300

$400

$500

$600

Pric

e (C

dn$/

m3 )

Alberta Production Alberta Crude Oil PriceSource: Prices - CAPP Statistical Handbook

ERCB Prorationing Plan (restricted production)

Major Oil Field Discoveries1947 – Leduc1948 – Redwater1949 – Golden Spike1952 – Bonnie Glen1953 – Pembina1957 – Swan Hills1959 – Judy Creek1959 – Swan Hills South1965 - Rainbow

Major Events Affecting Price1973 – Oil Embargo1979 – Iranian Revolution1980 – Iran / Iraq War1986 – OPEC Crumbles1990 – Gulf War1998 – Asian Econ. Crisis2001 – 9 / 112003 – Iraq War

1938 - Petroleum and Natural Gas ConservationBoard (ERCB) created to enforce productionstandards

Export Pipelines1950 – Interprovincial Pipeline (Enbridge)1953 – Trans Mountain Pipe Line

Page 7: actual

0

20

40

60

80

100

120

140

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Prod

uctio

n (1

03 m3 /d

)

$0

$100

$200

$300

$400

$500

$600

$700

Pric

e (C

dn$/

m3 )

Mined Bitumen SCO Production SCO Price

Figure 7. Alberta mined bitumen and synthetic crude oil production and price

Great Canadian Oil Sands (Suncor) Startup

Syncrude Startup

Alberta Oil Sands Project Startup

Page 8: actual

0

25

50

75

100

125

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Prod

uctio

n (1

03 m

3 /d)

0

100

200

300

400

500

Pric

e (C

dn$/

m3 )

In Situ Production Bitumen Price

Cold Lake Pilot Production Cold Lake Phases 1-6 Cold Lake Phases 7-13

Shell Peace River Startup

First SAGD ProductionAEC (EnCana) Foster Ck.

Amoco (CNRL)Wolf Lake &Primrose Startup

Figure 8. Alberta in situ bitumen production and price

Page 9: actual

Figure 9 Historical natural gas production and price

0

50

100

150

200

250

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

Prod

uctio

n (1

09 m

3 )

$0

$2

$4

$6

$8

$10

Pric

e (C

dn$/

GJ)

Gas production Alberta plant gate price

Gas prices as a by-product of oil production. Price less than replacement cost

Arbitration awardsprice increase

Regulated gas pricetied to oil prices;Surplus built up

Price deregulation

Surplus gas drivesdown prices

PGT expansion

Northern Border pipeline expansion

Hurricanes Katrina and Ritahit U.S. Gulf Coast

Foothills Pipe Lines built for gas exports to California and the mid-western U.S.

Alliance Pipeline on stream

Page 10: actual

0

5

10

15

20

25

1971 1976 1981 1986 1991 1996 2001 2006

Inve

ntor

y (m

illio

n to

nnes

)

0

20

40

60

80

100

120

140

160

180

200

Pric

e (U

S $/

tonn

e)

Gas Processing Plants Oil Sands Plants FOB Vancouver (US$/tonne)

Figure 10 Sulphur closing inventories in Alberta and price

Prices reached highs in theUS$650-$840/tonne rangein 2008

Page 11: actual

0

10

20

30

40

50

60

70

8018

82

1892

1902

1912

1922

1932

1942

1952

1962

1972

1982

1992

2002

Prod

uctio

n (m

illio

n to

nnes

)

Subbituminous Bituminous Thermal Bituminous Metallurgical

1898

– E

xpan

sion

of r

ailw

ay n

etwo

rk (c

oal a

nd o

il fir

ed s

team

eng

ines

)

an

d gr

owth

of p

opul

atio

n

1952

– B

egin

ning

of c

hang

e to

die

sel-e

lect

ric tr

ains

1960

– S

team

rail

era

ends

Late

1960

’s –

Beg

inni

ng o

f exp

orts

to J

apan

for s

teel

indu

stry

1970

’s –

incr

ease

in c

oal-f

ired

elec

tric

gene

ratio

n

1950

’s –

Cru

de o

il an

d na

tura

l gas

repl

ace

coal

as

ener

gy s

ourc

e of

cho

ice

Coal remained “King Coal” until huge reservoirsof crude oil and natural gas were discovered

0

20

40

60

80

100

120

140

Pric

e (U

S$/to

nne)

Australian-Japan contract price for thermal coal

Figure 11Historical coal production and price

Australian-Japan contract price for thermal coal (Australian Bureau of Agricultural and Resource Economics - ABARE)

Late

199

0’s

– m

ine

clos

ures

an

d re

duce

d co

al e

xpor

ts

due

to d

epre

ssed

coa

l pric

es

Page 12: actual

Figure 1.1 OPEC crude basket reference price 2008

50

55

60

65

70

75

80

85

90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$US/

bbl

Source: OPEC

0

20

40

60

80

100

120

140

160

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

US$/

bbl

Page 13: actual
Page 14: actual

Figure 1.3 Price of WTI at Chicago

0

40

80

120

160

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Pric

e (U

S$/b

bl)

0

200

400

600

800

1000

Pric

e (U

S$/m

3 )

actual forecast

High

Low

Page 15: actual

Figure 1.4 Average price of oil at Alberta wellhead

0

200

400

600

800

1000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Cdn$

/bbl

0

40

80

120

160Cd

n$/m

3

actual forecast

High

Low

Page 16: actual

Figure 1.5 2008 average monthly reference prices in Alberta

0

200

400

600

800

1000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Pric

e (C

dn$/

bbl)

0

40

80

120

160Pr

ice

(Cdn

$/m

3) Light-medium

Heavy

Bitumen

Page 17: actual
Page 18: actual

Figure 1.7 Average price of natural gas at plant gate

0

2

4

6

8

10

12

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Pric

e (C

dn$/

GJ)

actual forecasthigh

low

Page 19: actual

Figure 1.8 Alberta Wholesale Electricity Prices

0

25

50

75

100

125

150

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Pric

e (C

dn$/

MW

h)

actual forecast

Page 20: actual
Page 21: actual

67.367.5 67.3 64.6 63.771.6

77.082.5

88.2 93.5 94.3

6065707580859095

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cen

ts

1.95.2

4.15.5

1.82.9

3.1 3.1 2.8 2.7

0.5

6.56.06.87.67.77.6 7.2 7.2

8.36.8 6.3

02468

1012

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Perc

enta

ge

2.8

2.7

1.01.8

2.5 2.2

1.9 2.22.0 2.2 2.3

4.76.1

4.44.74.2

6.45.8

4.06.6

7.3 5.8

02468

1012

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Per

cent

age

Figure 1.10 Canadian economic indicatorsSource: Statistics Canada, Bank of Canada

Exchange Rate

Prime rate on Loans

Inflation rate

Prime vs. inflation

Unemployment vs. GDP growth

Unemployment rate

Real GDP growth

Page 22: actual

Figure 1.11 Alberta real investment

0

20

40

60

80

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

billi

ons

of 2

002

Cdn

$actual forecast

Source: Statistics Canada, Canadian Association of Petroleum Producers*includes support activities to mining and oil and gas extraction

Other

Public

Residential

Coal and metal mining*

Conventional oil and gas

Oil sands

Page 23: actual

2007 - 2008 Value of Production in Alberta

$0

$10

$20

$30

$40

NaturalGas

NaturalGas

Liquids

Crude Oil SCO andBitumen

Sulphur Coal

billi

ons

of C

dn$

2007 2008

N/A

Page 24: actual
Page 25: actual

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Res

erve

s (1

06 m3)

0

5

10

15

20

25

30

Res

erve

s (b

illio

n ba

rrel

ls)In Situ Mineable Total

Figure 2.2 Remaining established reserves under active development

Page 26: actual
Page 27: actual
Page 28: actual
Page 29: actual
Page 30: actual
Page 31: actual

ATHABASCA

COLD LAKE

PEACE RIVER

6.4 36.9

49.4

114.7

Figure 2.8.Production of Bitumen in Alberta, 2008 103 m3/d

Mined Bitumen

In Situ

Page 32: actual

0%

20%

40%

60%

80%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (P

erce

ntag

e)

Conventional crude oil & pentanes plus SCO & bitumen

Figure 2.9. Alberta crude oil and equivalent production

Page 33: actual

0

2000

4000

6000

8000

10000

12000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Num

ber o

f pro

duci

ng w

ells

0

20

40

60

80

100

Prod

uctio

n (1

03 m

3 /d)

Producing Wells Production

Figure 2.10. Total in situ bitumen production and producing bitumen wells

Page 34: actual

Figure 2.11. In situ bitumen production by oil sands area (OSA)

Synthetic Crude Oil

0

20

40

60

80

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

03 m

3/d)

Cold Lake OSA

Athabasca OSA

Peace River OSA

Page 35: actual

Figure 2.12. In situ bitumen production by recovery method

Synthetic Crude Oil

0

20

40

60

80

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

03 m

3/d)

Primary Production

CSS Production

SAGD Production

Experimental Production

Page 36: actual

Figure 2.13. Alberta crude bitumen production

0

100

200

300

400

500

600

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Prod

uctio

n (1

03 m

3 /d)

Surface mining

In situ

actual forecast

Page 37: actual

Figure 2.14. Alberta synthetic crude oil production

Synthetic Crude Oil

0

100

200

300

400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Prod

uctio

n (1

03 m

3/d)

Synthetic crude oil

actual forecast

Page 38: actual
Page 39: actual
Page 40: actual

Figure 2.17. Alberta oil sands upgrading coke inventory

Synthetic Crude Oil

0

10

20

30

40

50

60

1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Inve

ntor

y (m

illio

n to

nnes

)

Oil Sands Plants – Coke Inventory

Page 41: actual

Figure 2.18. Alberta demand and disposition of crude bitumen and SCO

Synthetic Crude Oil

0

100

200

300

400

500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dem

and

(103

m3/

d)

Alberta demand (mainly SCO)

actual forecast

SCO removals from Alberta

Nonupgraded bitumen removals

from Alberta

Page 42: actual

0

100

200

300

400

500

600

700

800

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Res

erve

s (1

06 m3)

Figure 3.1 Remaining established reserves of crude oil

Heavy

Light-medium

Page 43: actual

Figure 3.2 Annual changes in conventional crude oil reserves

-30

-20

-10

0

10

20

30

40

50

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Res

erve

Cha

nges

(106 m

3 )

Additions Revisions

Page 44: actual

Figure 3.3 Annual changes to waterflood reserves

-10

-5

0

5

10

15

20

25

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Res

erve

Cha

nges

(106

m3)

New waterflood Waterflood revisions

`

Page 45: actual

Figure 3.4 Distribution of oil reserves by size

Remaining reserves

(103m3)

Total number of pools Initial reserves

(103m3)

(103 m3)

Page 46: actual

0

50

100

150

200

250

300

350

1970 1975 1980 1985 1990 1995 2000 2005

Initi

al e

stab

lishe

d re

serv

es (1

06 m3 )

Average Median

Figure 3.5 Oil pool size by discovery year

Page 47: actual
Page 48: actual

Figure 3.7 Geological distribution of reserves of conventional crude oil

0

200

400

600

800

1000

1200R

eser

ves

(10

6 m3 )

Initial established reserves Remaining established reserves

Page 49: actual

2008 Initial established reserves2773 106 m3

2008 Remaining established reserves233 106 m3

Fig. 3.8. Regional distribution of Alberta oil reserves 2008 (106 m3)

268

21

490

48

1184

71

467

43

187

10156

38

5

18

Page 50: actual

Figure 3.9 Alberta’s remaining established oil reserves versus cumulative production

0

200

400

600

800

1000

1200

1400

500 1000 1500 2000 2500 3000 3500

Cumulative production (106 m3)

Rem

aini

ng e

stab

lishe

d oi

l res

erve

s (1

06 m

3 )

Year 1970

Page 51: actual
Page 52: actual

Figure 3.11.Alberta successful oil well drilling Bymodified PSAC area

2007 Wells Drilled = 1796

2008 Wells Drilled = 1788

40

396

499

1

39

350 369

352

0

486

210 206

300336

3%

2%

5%

11%

3%

100%

<1%

12%

Page 53: actual

Total wells = 1738

Figure 3.12.Oil wells placedon production, 2008by modified PSAC area 296

1

428 350431

197

35

Page 54: actual

Figure 3.13. Initial operating dayrates of oil wells placed on production, 2008by modified PSAC aream3/day/well

16.1[101]

9.6[60]

8.5[54]

5.1[32]

7.6[48]

2.4[15]

6.6[42]

Page 55: actual

Figure 3.14. Conventional crude oil production by modified PSAC area

0

20

40

60

80

100

120

140

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

03 m

3/da

y)

PSAC 8PSAC 7

PSAC 5

PSAC 3

PSAC 4

PSAC 2

PSAC 1

Page 56: actual

0

10000

20000

30000

40000

50000

1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

Num

ber o

f wel

ls

0

50

100

150

200

250

Prod

uctio

n (1

03 m

3 /d)

Producing wells Production

Figure 3.15. Total crude oil production and producing wells

Page 57: actual
Page 58: actual

0

5000

10000

15000

20000

25000

30000

0 - 2 2 - 5 5 - 10 10 - 20 20 - 50 50 - 100 100+

Production category (m3/d)

Num

ber o

f wel

ls

0

50

100

150

200

250

300

Prod

uctio

n (m

3 /d)

Producing wells Average rate

Figure 3.17. Crude oil well productivity in 2008

Page 59: actual

Figure 3.18. Total conventional crude oil production by drilled year

% of totalproduction from oil wells

0

20

40

60

80

100

120

140

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

03 m3 /d

)

Pre-1999 20082007

20062005

20032004

20022001

20001999

9%

48%

7%

3%4%2%

5%

3%

5%

6%

8%

Page 60: actual

0

500

1000

1500

2000

2500

3000

3500

4000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Prod

uctio

n (1

03 bbl

/d)

Figure 3.19. Comparison of crude oil production

Texas onshore

Louisiana onshore

Alberta crude oil

Page 61: actual

Figure 3.20. WTI crude oil price and well activity

0

1000

2000

3000

4000

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Num

ber o

f wel

ls

$0

$40

$80

$120

$160

Pric

e (U

S$/b

bl)

Wells placed on production WTI @ Chicago

actual forecast

Page 62: actual

0

30

60

90

120

150

180

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Prod

uctio

n (1

03 m

3 /d)

actual forecast

Figure 3.21. Alberta average daily production of crude oil

Heavy

Light-medium

Page 63: actual

Figure 3.22. Capacity and location of Alberta refineries

0

5000

10000

15000

20000

25000

30000

35000

Imperial Edmonton

Petro-Canada Edmonton

Shell Scotford

Husky Lloydminster

Parkland Bowden

Ref

iner

y ca

paci

ties

(m3 /d

)

Page 64: actual

0

30

60

90

120

150

180

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dem

and

(103

m3/

d)

actual forecast

Figure 3.23. Alberta demand and disposition of crude oil

Crude oil removals from Alberta

Alberta demand

Page 65: actual

Figure 3.24. Alberta supply of crude oil and equivalent

0

100

200

300

400

500

600

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Supp

ly (1

03 m

3 /d)

actual forecast

Non upgraded bitumen

Light-medium

SCO

Pentanes plusHeavy

Page 66: actual

Figure 3.25. Alberta crude oil and equivalent production

0%

20%

40%

60%

80%

100%

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Prod

uctio

n (P

erce

ntag

e)

Conventional crude oil & pentanes plus SCO & bitumen

actual forecast

Page 67: actual
Page 68: actual
Page 69: actual
Page 70: actual
Page 71: actual
Page 72: actual
Page 73: actual

Figure 4.7 CBM Production from CBM Wells

0

5

10

15

20

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Prod

uctio

n (1

09 m3 )

actual forecast

HSC

Mannville

Page 74: actual

0

20

40

60

80

100

120

140

160

180

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

Res

erve

Add

ition

s an

d Pr

oduc

tion

(109 m

3 )

Additions Production

Figure 5.1 Annual reserves additions and production of conventional marketable gas

Page 75: actual

0

400

800

1200

1600

2000

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

Rem

aini

ng R

eser

ves

(10

9 m3 )

Figure 5.2 Remaining conventional marketable gas reserves

Page 76: actual

-60

-40

-20

0

20

40

60

80

100

120

140

1999 2000 2001 2002 2003* 2004* 2005* 2006* 2007* 2008

Res

erve

Cha

nges

(10

9 m3 )

New Development Revisions

Figure 5.3 New, development, and revisions to conventional marketable gas reserves

* Distribution of changes revised in 2008

Page 77: actual
Page 78: actual

Figure 5.5 Distribution of conventional gas reserves by size

Remaining reserves

(109m3)

Total number of pools

(106m3)Initial reserves

(109m3)

Page 79: actual

0

50

100

150

200

250

300

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

Initi

al E

stab

lishe

d re

serv

es (1

06 m3 )

Average Median

Figure 5.6 Conventional gas pool size by discovery year

Page 80: actual

0

400

800

1200

1600

2000

2400

UpperCretaceous

LowerCretaceous

Jurassic Triassic Permian-Belloy Mississippian UpperDevonian

MiddleDevonian

Mar

keta

ble

Gas

Res

erve

s (1

09 m

3 )

Initial marketable reserves Remaining marketable reserves

Figure 5.7 Geological distribution of conventional marketable gas reserves

Page 81: actual

0

400

800

1200

1600

2000

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Rem

aini

ng R

eser

ves

(10

9 m3 )

Figure 5.8 Remaining conventional marketable reserves of sweet and sour gas

Sweet natural gas

Sour natural gas

Page 82: actual

25

50

60

9040

35

30

10

100

35

15 10

0%

20%

40%

60%

80%

100%

Methane Ethane Propane Butanes Pentanes plus

Perc

enta

ge o

f com

pone

nt

Removed at field plants Removed at straddle plants Marketable gas

Figure 5.9 Expected recovery of conventional natural gas components

Page 83: actual
Page 84: actual

Figure 5.11 Conventional gas ultimate potential

0

1000

2000

3000

4000

5000

6000

7000

1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

Ulti

mat

e Po

tent

ial (

109 m

3 )

Ultimate potential based on EUB/NEB 2005 Report

Remaining reserves

Production

Page 85: actual
Page 86: actual

0

500

1000

1500

2000

2500

3000

3500

4000

4500

UpperCretaceous

LowerCretaceous

Jurassic Triassic Mississippian Upper Devonian

Gas

in p

lace

(10

9 m3 )

Ultimate gas in place Discovered gas in place

Figure 5.13 Conventional gas in place by geological period

Page 87: actual

Figure 5.14Alberta successful gaswell drilling (conventional)by modified PSAC area

95

111

1248308

4959

91

61

43288152

2128 2106

986

56

302

3604

36%

38%

47%

61%

27%

2%

21% 1%

2007 wells drilled = 9228 21%

2008 wells drilled = 7310

Page 88: actual

0

2000

4000

6000

8000

10000

12000

14000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Num

ber o

f wel

ls

Drilled Connected

Figure 5.15 Successful conventional gas wells drilled and connected

Page 89: actual

Figure 5.16 Conventional gaswell connectionsby modified PSAC area

119

168

1427477

4557100

96

84

270 193

2168 2004

1213

70

378

3869

2007 WellsTotal Wells connected = 9286 2008 WellsTotal Wells connected = 7907

Page 90: actual
Page 91: actual

Figure 5.18 Marketable gas production by modified PSAC area

0

20

40

60

80

100

120

140

160

180

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Mar

keta

ble

Prod

uctio

n (1

09 m

3)

PSAC 6

PSAC 4

PSAC 5

PSAC 2

PSAC 3

PSAC 1

Gas from oil wells

PSAC 7

PSAC 8

% of totalproduction

1%

4% 3%11%

4%

20%

42%

6%

9%

Page 92: actual

0

20000

40000

60000

80000

100000

120000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Num

ber o

f pro

duci

ng w

ells

0

50

100

150

200

250

300

Prod

uctio

n (1

09 m

3 )

Producing wells Production

Figure 5.19 Conventional marketable gas production and number of producing wells

Page 93: actual
Page 94: actual

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

0-2 2-5 5-10 10-20 20-50 50-100 100+

Production category (103m3/d)

Num

ber o

f pro

duci

ng w

ells

0

40

80

120

160

200

240

280

320

360

400

Prod

uctiv

ity (1

03 m

3 /d)

Producing wells Average rate

Figure 5.21 Natural gas well productivity in 2008

Page 95: actual

0

20

40

60

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

09 m3 )

Pre - 1999

20082007

20062005

2003 20042002

20012000

1999

Gas from oil wells

Figure 5.22 Raw gas production by connection year

% of totalproduction from gas wells

5

Connection year

3 4

27

8

11

9

13

6

5

9

Page 96: actual

0

50

100

150

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

09 m

3)

Sour Sweet

Figure 5.23 Raw gas production of sweet and sour gas

Page 97: actual

0

5

10

15

20

25

1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008

Tcf

Figure 5.24 Comparison of raw natural gas production

Texas onshore

Louisiana onshore

Alberta

US total production

Page 98: actual

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1999 2000 2001 2002 2003 2004 2005 2006 2007

Prod

uctiv

ity (1

03 m

3 /d)

AlbertaAlberta excluding PSAC Area 3PSAC Area 3 (Southeastern Alberta)

Figure 5.25 Average initial natural gas well productivity in Alberta

Page 99: actual

Figure 5.26 Alberta natural gas well activity and price

0

4000

8000

12000

16000

20000

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Num

ber o

f wel

ls

$0

$2

$4

$6

$8

$10

Pric

e ($

Cdn

/GJ)

New well connections Alberta plant gate price

actual forecast

Page 100: actual

Figure 5.27 Conventional marketable gas production

0.0

30.0

60.0

90.0

120.0

150.0

180.0

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Prod

uctio

n (1

09 m

3 )

actual forecast

Page 101: actual

Figure 5.28 Gas production from bitumen upgrading and bitumen wells used for oil sands operations

0

2

4

6

8

10

12

14

16

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Prod

uctio

n (1

09 m

3 )

Process gas from upgrading bitumen Gas from bitumen wells

actual forecast

Page 102: actual

Figure 5.29 Total gas production in Alberta

0

50

100

150

200

250

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Prod

uctio

n (1

09 m

3 )

Conventional marketable gas Coalbed methaneProcess gas from upgrading bitumen Gas from bitumen wells

actual forecast

Page 103: actual

Figure 5.30 Alberta natural gas storage injection/withdrawal volumes

-2000

-1500

-1000

-500

0

500

1000

1500

2000

Inje

ctio

ns/W

ithdr

awal

s (1

06m

3)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 2007 2008

Page 104: actual
Page 105: actual
Page 106: actual

0

10

20

30

40

50

6019

99

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Dem

and

(109 m

3 )

Figure 5.33 Alberta marketable gas demand by sector

Reprocessing plant shrinkage

Transportation

Electricity generation

Other industrial

Industrial - petrochemical

Industrial – oil sands

Residential

Commercial

actual forecast

Page 107: actual

0

100

200

300

400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Nat

ural

Gas

Vol

umes

(10

9 m3 )

Figure 5.34 Historical volumes “available for permitting”

Page 108: actual

0

5

10

15

20

25

30

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Dem

and

(109 m

3 )

actual forecast

Mining and Upgrading

In Situ

In Situ Cogeneration

Mining and Upgrading Cogeneration

Figure 5.35 Purchased natural gas demand for oil sands operations

Page 109: actual

Figure 5.36 Gas demand for bitumen recovery and upgrading

0

5

10

15

20

25

30

3519

99

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Dem

and

(109 m

3 )

actual forecast

Purchased gas

Produced gas from bitumen

Process gas from upgrading*

* Does not included process gas for electricity generation.

Page 110: actual

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Gas

Use

(109 m

3 )

actual forecast

Process Gas for Mining/Upgrading

Produced Gas from Bitumen Wells for In situ Recovery

Purchased Gas for In situ Recovery

Purchased Gas for

Electricity Cogeneration

Purchased Gas for Mining/Upgrading

Process Gas for

Electricity Cogeneration

Figure 5.37 Total Purchased, Process and Produced Gas for Oil Sands Production

Page 111: actual

0

50

100

150

200

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Prod

uctio

n an

d de

man

d (1

09 m

3 )

Residential demand Commercial demand Other Alberta demand Alberta gas removals

actual forecast

Figure 5.38 Total marketable gas production and demand

23% 26% 33% 44% 58%

Page 112: actual

Figure 6.1 Remaining established NGL reserves expected to be extracted from conventional gas and annual production

0

30

60

90

120

150

Ethane Propane Butanes Pentanes Plus

Liqu

id v

olum

e (1

06 m3 )

Reserves Annual production

Page 113: actual

Figure 6.2 Remaining established reserves of conventional natural gas liquids

0

50

100

150

200

250

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Esta

blis

hed

rese

rves

(106 m

3 )

Ethane Propane Butanes Pentanes plus

Page 114: actual
Page 115: actual

Figure 6.4. Ethane supply and demand

0

20

40

60

80

100

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Supp

ly a

nd D

eman

d (1

03 m

3 /d)

Ethane Supply Alberta Demand*Potential supply from conventional gas Potential supply from oil sands off-gas

* excludes solvent flood volumes

actual forecast

Page 116: actual

Figure 6.5. Propane supply from natural gas and demand

0

10

20

30

40

Supp

ly a

nd D

eman

d (1

03m

3/d)

actual forecast

* excludes solvent flood volumes

Alberta Demand*

Supply

Page 117: actual

Figure 6.6. Butanes supply from natural gas and demand

0

5

10

15

20

25

Supp

ly a

nd D

eman

d (1

03

m3 /d

)

actual forecast

* excludes solvent flood volumes

Alberta Demand*

Supply

Page 118: actual

Figure 6.7. Pentanes supply from natural gas and demand for diluent

0

10

20

30

40

50

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Supp

ly a

nd D

eman

d (1

03

m3 /d

)

actual forecast

* excludes solvent flood volumes

demand met by alternative sources and types of diluent

Alberta Demand*

Supply

Page 119: actual

0

2

4

6

8

1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

Prod

uctio

n (1

06 t)

Figure 7.1 Sulphur production from gas processing plants in Alberta

Page 120: actual

0

200

400

600

800

1000

2003 2004 2005 2006 2007 2008

Prod

uctio

n (1

03 t)

Syncrude Suncor Shell

Figure 7.2 Sulphur production from oil sands

Page 121: actual

0

2

4

6

8

10

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Prod

uctio

n (1

06 t)

actual forecast

Figure 7.3 Sources of sulphur production

Sour gas

Refining and upgrading

Page 122: actual

0

1000

2000

3000

4000

5000

Australia Brazil China NewZealand

SouthAfrica

Others

Expo

rts (1

03 t)

2003 2004 2005 2006 2007 2008

Figure 7.4 Canadian sulphur offshore exports

Page 123: actual

0

1

2

3

4

5

6

7

8

9Su

pply

/Dem

and

(10

6 t)

Alberta Demand

Removed from Alberta

Stockpile WithdrawalsStockpile

Total Demand

Production

actual forecast

Figure 7.5 Sulphur demand and supply in Alberta

Page 124: actual
Page 125: actual

0

10

20

30

40

50

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Prod

uctio

n (M

t)

Subbituminous

Thermal bituminous

Metallurgical bituminous

Figure 8.2Alberta marketable coal production

actual forecast

Page 126: actual

0

5

10

15

20

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Gen

erat

ing

Cap

acity

(103

MW

)

Coal Natural Gas Hydro Other

actual forecast

Figure 9.1. Alberta electricity generating capacity

Page 127: actual

Figure 9.2. Alberta electricity generation

0

25

50

75

100

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Gen

erat

ion

(103 G

Wh)

Coal Natural Gas Hydro Other

actual forecast

Page 128: actual

Figure 9.3. Alberta electricity transfers

0

500

1000

1500

2000

2500

3000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Ele

ctric

ity T

rans

fers

(GW

h)

Deliveries Receipts

Page 129: actual

Figure 9.4. Alberta electricity consumption by sector

0

25

50

75

100

2017

AIL

0

25

50

75

100

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Con

sum

ptio

n (1

03 GW

h)

Industrial Industrial on site Direct ConnectCommercial Residential Agriculture

actual forecast

Page 130: actual

9.5. Alberta oil sands electricity generation and demand

0

5

10

15

20

25

30

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Gen

erat

ion

and

Dem

and

(103 G

Wh) actual forecast

Electricity Generation

Demand