1. Ensuring the Energy, Environmental, and Economic needs of North America Canadian Energy Perspectives

2. 2 Canada US Energy Trade (2008) Providing Energy Security Canada’s energy exports to the US = $122 billion Canadian exports satisfied 9% of total US demand Cross-border direct investment in energy is approx. $90 billion 23M MWh 55M MWh 524 Bcf 3629 Bcf 676 MMb ElectricityCrude OilNatural GasUS consumption 1%13%15%from Canada $3.8 Billion$61 Billion$33 Billion

3. 3 Canada is your largest & most secure energy supplier * OPEC Member Source: EIA, 2008 data U.S. Imports of crude oil & petroleum products Providing Energy Security Canada Saudi Arabia* Mexico Venezuela* Nigeria* Iraq* Algeria* Russia Angola thousand barrels per day

4. 4 Oil Reserves by Country CanadaSaudi Arabia*Abu Dhabi*Venezuela* Nigeria* Iran* Libya* Kazakhstan Russia United States * OPEC Member Source: EIA, 2008 data Iraq*Kuwait* Providing Energy Security These Twelve Countries Represent 88% of the Planets Oil Reserves

5. 5 Global Energy Demands 82% of the world’s known oil reserves are state controlled or managed by national oil companies Only 18% is openly accessible to the market Two thirds of that accessible oil is in Canada’s Oil Sands Providing Energy Security

6. 6 Pipelines New proposals Expansion of existing lines Existing lines Oil sands deposits Developed oil sands Providing Energy Security

7. 7 Greenhouse Gas (GHG) Emissions GHG Emissions by Country Canada’s GHG Emissions by Sector Solvent & Waste 4% Oil Sands 5% Agriculture 9% Buildings 10% Other Industry 14% Electricity & Heat Generation 16% Oil & Gas 18% (excluding oil sands) Transportation 25% Ensuring Environmental Stewardship United States 22% Other 21% China 20% Eurasia 9% Canada 2% Japan 4% India 4% Europe 17% Australia 1%

8. 8 Emissions in Perspective Ensuring Environmental Stewardship

9. 9 Regulations The Provinces have jurisdiction over the development of their resources The Government of Canada has legislative and/or mandated responsibilities in the areas of: Fisheries and Navigable Waters, Wildlife Protection Trans-boundary Issues and Human Health Shared responsibilities include a fiscal and regulatory framework that encourages investment, technology development, and meets environmental goals Ensuring Environmental Stewardship

10. 10 Economic Benefits (Forecast of 343,000 New American Jobs from 2011 to 2015) Generating Economic Benefits 7,300 4,700 43,200 Alaska = 900 Hawaii = 1,400 3,200 1,200 1,900 6,500 2,000 3,100 6,000 800 1,000 2,300 3,200 6,800 3,900 2,900 27,300 4,800 4,000 3,200 7,200 14,600 10,600 7,600 20,300 10,500 5,200 4,700 4,800 7,000 8,400 10,300 13,200 13,800 1,700 1,600 7,700 4,000 9,300 19,400 800 1,700 1,000 1,200 1,000

11. Environment Economy Energy

12. 12 Canada is your Largest and Most Secure Energy Supplier Canada is a strategic partner of the United States, supplying oil, natural gas, uranium and electricity 91% of U.S. gas imports, and nearly 20% of U.S. consumption 33% of U.S. uranium imports 98% of U.S. electricity imports 20% of U.S. imports of crude oil and petroleum products

13. 13 Oil is an Important Part of our Energy Mix Global economic growth is going to require more energy — of all kinds Canada and the United States are preparing for the shift away from fossil fuels towards cleaner fuels The oil sands are a vital part of the North American energy future

14. 14 Canadian Production Relies on Oil Sands Crude

15. 15 Oil Sands Production Technologies In situ Steam Assisted Gravity Drainage Cyclic Steam Process In Situ: 80% of resource 45% of current production No tailings ponds No water drawn from the Athabasca River Smaller footprint Mining: 20% of resource 55% of current production The mineable area represents 3% of the total oil sands area

16. 16 Well-to-wheel GHG Emissions by Crude Type Canada Saudi Arabia* Venezuela* Nigeria* Iraq* Algeria* Oil sands derived fuels generally have 10% higher emissions than other crudes used in the United States Emissions for conventional crudes will increase over time with the global shift to heavier crudes while new technologies will further decrease GHG emissions from the oil sands

17. 17 Life-cycle GHG Emissions CanadaSaudi Arabia*Abu Dhabi*Venezuela*Iran* Libya* RussiaIraq*Kuwait* Well-to-TankTank-to-Wheel Well-to-Wheel The full life-cycle of emissions (“well to wheels”) measures the GHG impact of fuels from their extraction to use For gasoline, around 75 - 80 % of life cycle GHG emissions from gasoline arise from combustion (“tank to wheel”)

18. 18 Canada’s GHG Policies Federal Government Committed to reduce GHG emissions by 20% below 2006 levels by 2020 and 60-70% by 2050 Specific policy framework, covering major GHG sources, announced this fall Committed to achieve 90% of electricity from non-emitting sources by 2020 Budget 2009 created the Clean Energy Fund, which includes $650M for CCS Entered into a Clean Energy Dialogue with the United States, which will advance CCS in Canada and the United States Endorsed G8 commitment to launch 20 CCS demonstrations by 2010 Alberta Government Legislation passed requiring mandatory GHG emissions reductions (first in North America) Alberta Climate Change Plan sets target to reduce provincial GHG emissions in 2050 by 50% from BAU Achievements to Date: Transportation and energy infrastructures between Canada $122 million paid into the Climate Change and Emissions Management Fund to support transformative emission reduction technologies in Alberta 6.5 million tonnes in real reductions made (equivalent to removing 1.3 million vehicles from the road for a year)

19. 19 Canada’s Oil Sands The oil sands are a strategic resource that will contribute to energy security for Canada, North America and the world for decades to come. There are significant environmental challenges in the areas of air, land and water. Improvements have been made in each of these areas, but more must be done. We have the regulatory framework to support our objectives for improved environmental performance. Governments and industry are making the investments in technology to achieve our objectives in environmental performance. We are committed to bring on this key strategic resource in an environmentally responsible way.