Canadian Heavy Oil Association

Canadian Oil Sands

Presented to:
VI INGEPET
Lima, Peru, October 15, 2008
Presented by: Gerry Belyk
Canadian Heavy Oil Association 2006-2007 President
 More Information

www.choa.ab.ca

Canadian Heavy Oil Association

 Canada – Vast Heavy Oil Experience

Canadian Heavy Oil Association

 Canadian Crude Oil Reserves

Canadian Heavy Oil Association

 Heavy Oil Production Growth

TOTAL
4.5 million
barrels/day

3.5 million
Oil Sands
Derived

Source: CAPP – June 2007 (moderate case)

Canadian Heavy Oil Association

 Heavy Oil

Bitumen < 10 API

• Gravity < 20 API

• High viscosity

Canadian Heavy Oil Association

 What are Oilsands

•10 - 12 wt. % bitumen

•Unconsolidated,
crumbles easily in
hands

Canadian Heavy Oil Association

 Heat or Diluent Required to Flow

10°C
Peanut
Butter

Corn
Syrup
10W30
Motor Oil

Water 90°C

Canadian Heavy Oil Association

 Alberta

• Fort McMurray

• Edmonton

• Calgary

Canadian Heavy Oil Association

 Where Heavy Oil Lives

• Mining - Fort McMurray

• Thermal production
– Steam assisted gravity
drainage (SAGD)
– Cyclical Steam
Stimulation (CSS)

• Conventional heavy oil

in the Lloydminster area
– Cold production (CHOP)
• With/without sand

Canadian Heavy Oil Association

 Mined vs SAGD production
Only 20% Mineable

More than 80% of reserves

too deep to mine Athabasca
River
Open Pit Mine
Open Pit Mine

Oil Sands

Currently 65% of production is mined

Other recovery methods used for reserves too

deep to mine

Canadian Heavy Oil Association

 Various Production Types

Canadian Heavy Oil Association

 Planned Alberta Investment

Oil Sands
> $C155 billion

TOTAL
>$C244 billion
Source: Alberta Economic Development

Canadian Heavy Oil Association

 Investment

• Bitumen production
– Mining and extraction
– Thermal bitumen production
• Steam assisted gravity drainage (SAGD)
• Cyclical steam stimulation (CSS)

• Upgrading/refining
– Either linked with production or “stand alone”

• Pipelines
– Including condensate import/return

Canadian Heavy Oil Association

 Planned Alberta HO Investment

Source: Alberta Industrial Heartland

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 Project Labor Needs

Source: COAA
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 Limitations

• Many projects are “on the books”

• There are many projects

“clustered” in the same schedule

• Realities:
– workforce, construction, equipment,
and infrastructure

• Schedules will extend

Canadian Heavy Oil Association

 Upgrading

Canadian Heavy Oil Association

 Good News

• With
– Proven reserves
– High oil prices
– Technology improvements
– Security of supply issues
– Access to large markets

Canadian Heavy Oil Association

 Opportunities

• Apply innovative technology

– Production, upgrading and refining

Canadian Heavy Oil Association

 Challenges

• Following through with investment plans

– Labour, engineering & equipment constraints

• Deciding where the value gets added

– Identifying the right project
– Upgrading investment vs. refinery investment

• Environmental responsibility
– Natural gas, CO2, by-product management

Canadian Heavy Oil Association

 Environmental Stewardship

Canadian Heavy Oil Association

 Environmental Facts

• Water Use: Oilsands 3.6%, Agriculture 40%, Municipal 11%

• Air Emissions:
– Oilsands 4% of Canadian emissions
– <1/10 of 1% of world emissions
– Automobiles emit 40%

• Progress: Suncor reduces H2O 40%, SO2 95%

• Industry will do more

Canadian Heavy Oil Association

 Canadian Expertise

• Long history of Heavy Oil Development

• Full range of heavy oil

• Innovative & experienced technical people

• Desire to improve global heavy oil recovery

CANADIANS CAN HELP YOU!

Canadian Heavy Oil Association