Figure 1.1 Price of WTI at Chicago ActualForecast

Figure 1.2 Average price of oil at Alberta wellhead ActualForecast

Figure 1.3 Average price of natural gas at plant gate ActualForecast

Figure 1.4. Alberta gas well cost estimations Drilling, casing and completion costs estimates (in millions 2003$) By Modified PSAC Area Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Source: PSAC 2004 Well Cost study (2003 dollars) and PSAC 2002 Well Cost study (2001 dollars) % 4.8% 5.5% 12.0% 12.3% 6.2%5.5% increase in costs (in percentage, over 2 years)

Figure 1.5. Alberta oil well cost estimations Drilling, casing and completion costs estimates. (in millions 2003$) By Modified PSAC Area Area 3 Area 4 Area 5 Area 7 Source: PSAC 2004 Well Cost study (2003 dollars) and PSAC 2002 Well Cost study (2001 dollars) % -2.1% 4.3% 9.0% increase in costs (in percentage, over 2 years)

Figure 1.6. Canadian economic indicators

Figure 1.7. Alberta GDP growth, unemployment & inflation rates ActualForecast

Figure 2.1. Alberta’s three oil sands areas

Figure 2.2. Comparison of Alberta’s crude oil and crude bitumen reserves

Figure 2.3. Bitumen pay isopachs for the Athabasca Wabiskaw-McMurray deposit at 6 mass per cent cutoff and greater than 1.5 metres

Figure 2.4. Net pay isopachs for recoverable bitumen within the Athabasca Wabiskaw- McMurray at 6 mass per cent cutoff and greater than 10 metres

ATHABASCA COLD LAKE PEACE RIVER Figure 2.5. Production of bitumen in Alberta m 3 /d Mined Bitumen In Situ

Figure 2.6. Alberta crude oil and equivalent production

Figure 2.7. Alberta crude bitumen production 10 3 m 3 /d ForecastActual Surface Mining In Situ

Figure 2.8. Total in situ bitumen production and producing bitumen wells

Figure 2.9. Alberta synthetic crude oil production 10 3 m 3 /d Forecast Actual Synthetic Crude Oil

Figure Alberta Demand and Disposition of Crude Bitumen and SCO 10 3 m 3 /d Forecast Actual SCO Removals from Alberta Nonupgraded Bitumen Removals from Alberta Alberta Demand (mainly SCO)

Figure 3.1. Remaining established reserves of crude oil

Figure 3.2. Annual changes in conventional crude oil reserves

Figure 3.3. Annual changes to waterflood reserves

Fig Distribution of oil reserves by size (10 3 m 3 )

Figure 3.5. Oil pool size by discovery year

Figure 3.6. Initial established crude oil reserves based on various recovery mechanisms (10 6 m 3 ) Light-mediumHeavy

Figure 3.7. Geological distribution of reserves of conventional crude oil

2004 Initial established reserves m Remaining established reserves m Fig Regional distribution of Alberta oil reserves (10 6 m 3 ) 2 21

Figure 3.9. Alberta’s remaining established oil Reserves versus cumulative production

Figure Growth in initial established reserves of crude oil 3130 Ultimate potentiial 10 6 m 3

Figure Alberta successful oil well drilling By Modified PSAC Area Wells Drilled = Wells Drilled =

Figure Initial operating day rates of oil wells placed on production, 2004 By Modified PSAC Area 17.9 (112) 12.7 (80) 7.3 ( 46) 4.8 (30) 7.3 (46 ) 5.5 (34 ) 10.5 (66) m 3 /day/well (bbl/day/well) Total = 1910 wells Figure Oil wells placed on production, 2004 By Modified PSAC Area

Figure Total crude oil production and producing oil wells

Figure Crude oil well productivity in 2004

7% 11% Figure Total conventional crude oil Production by year placed on production 4% 6% 3% 7% 42% Percent of total production from oil wells 6% 4% 3%

Figure Comparison of crude oil production Texas Onshore Louisiana Onshore Alberta Crude Oil

Figure Alberta Crude Oil Price and Well Activity ActualForecast

Figure Alberta daily production of crude oil Production (10 3 m 3 /d) ForecastActual Light-Medium Crude Oil Heavy Crude Oil

Figure Capacity and location of Alberta refineries Refinery Capacities - m 3 /d

Figure Alberta demand and disposition of crude oil 10 3 m 3 /d ForecastActual Alberta Demand Crude Oil Removals from Alberta

Figure Alberta supply of crude oil and equivalent 10 3 m 3 /d ForecastActual Light-Medium Heavy Pentanes Plus SCO Nonupgraded Bitumen

Figure 4.1. Alberta successful gas well drilling – coalbed methane By Modified PSAC Area 2004 Wells Drilled =

Figure 5.1. Annual reserves additions and production of marketable gas

Figure 5.2. Remaining marketable gas reserves

Total = m Figure 5.3. Alberta unconnected gas reserves, 2004 By Modified PSAC Area * Numbers not to scale 15

Figure 5.4. New, development, and revisions to marketable gas reserves

Total = m Figure 5.5. Marketable Gas Reserves Changes, 2004 By Modified PSAC Area 10 9 m * Numbers not to scale

Fig Distribution of Gas Reserves by size (10 9 m 3 )

Figure 5.7. Gas pools by size and discovery year

Figure 5.8. Geological distribution of marketable gas reserves

10 9 m 3 Sweet Natural Gas Sour Natural Gas Figure 5.9. Remaining marketable reserves of sweet and sour gas

Figure Expected recovery of natural gas components

Figure Growth of initial established reserves of marketable gas Ultimate potential (6.52) m 3 at 37.4 MJ/m 3 Actual as of December 31, 2004

Figure Gas ultimate potential Remaining reserves Production Ultimate potential based on 2004 study 10 9 m 3

Remaining established reserves m 3 Yet-to-be established reserves m Figure Regional Distribution of Alberta Gas Reserves (10 9 m 3 ) Initial established reserves m 3

Ultimate Potential: 2004 * m 3 Ultimate Potential: 1991 * m Figure Regional Distribution of Alberta’s Ultimate Potential for Conventional Natural Gas (10 9 m 3 ) * 1 as-is heating value * MJ/m3

Figure Gas in place by geological period

Figure Alberta successful gas well drilling - conventional By Modified PSAC Area Wells Drilled = Wells Drilled =

Figure Successful conventional gas wells drilled and connected Number of Wells

Figure Initial operating day rates of connections, 2004 By Modified PSAC Area 7 (0.25) 19 (0.67) 5 (0.18) 8 (0.28) 5 (0.18) 20 (0.71) 65 (2.30) 4 (0.14) 10 3 m 3 /day/well (MMcf/day/well) Total = wells Figure Conventional gas well connections, 2004 By Modified PSAC Area

Connection Year Percentage of Total Production from Gas Wells in % 13% 16% 11% 9 % 5 % Figure Raw gas production by connection year 7 % 5 % 4 % 3 % 2%

Figure Average initial natural gas well productivity in Alberta

Figure Alberta Natural Gas Well Activity and Price Actual Forecast

Figure Disposition of conventional marketable gas production Actual Forecast 10 9 m 3 Tcf % 23% 27% 36%42% Removals from AlbertaAlberta Demand

Figure Comparison of natural gas production Tcf Texas Onshore Louisiana Onshore Alberta

Actual Forecast

Figure Alberta natural gas storage injection/withdrawal volumes 10 6 m 3

Figure Alberta marketable gas demand by sector 10 9 m 3 Actual Forecast Residential Commercial Industrial – Oil Sands Industrial - Petrochemical Other Industrial Electricity Generation Transportation Re-processing Plant Shrinkage

Figure 6.1. Remaining established NGL reserves expected to be extracted and annual production

Figure 6.2. Remaining established reserves of natural gas liquids

Figure 6.3. Schematic of Alberta NGL flows Alberta Gas & NGL Market Alberta Gas & NGL Market - NGL Mix - Ethane - Propane - Butanes - Pentanes Plus Field Plants Field Plants Marketable Gas Raw Gas Extraction Plant - Ethane - Propane - Butanes - Pentanes Plus Chicago, IL Other Canadian Markets Other Canadian Markets US Markets Alberta Border Crude Oil Fractionation Plants - Ethane - Propane - Butanes - Pentanes Plus Propane Butanes Straddle Plants - NGL Mix - Ethane - Propane - Butanes - Pentanes Plus Oil Pools Refineries Alliance High Pressure Pipeline Gas Pools Gas Pools Sulphur Battery Dry Gas NGL Mix Spec product Rich gas R R R R Point royalties collected Dry or rich gas

Figure 6.4. Ethane supply and demand 10 3 m 3 /d Actual Forecast

Figure 6.5. Propane supply from natural gas and demand 10 3 m 3 /d Actual Forecast * excludes solvent flood volumes

Figure 6.6. Butane supply from natural gas and demand 10 3 m 3 /d Actual Forecast * excludes solvent flood volumes

Figure 6.7 Pentane supply from natural gas and demand 10 3 m 3 /d Actual Forecast * excludes solvent flood volumes

Figure 7.1. Sources of sulphur production Sour Gas Refining and Upgrading Actual Forecast

Figure 7.2. Sulphur production from oil sands

Figure 7.3. Canadian sulphur offshore exports

Figure 7.4. Sulphur demand and supply in Alberta Alberta Demand Removed from Province Stockpile Actual Forecast

Figure 8.1. Alberta Marketable Coal Production Million tonnes