canada will emerge as an energy superpower
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Table of Contents
• Chapter 1 Overview of Canada’s Energy Industry• Chapter 2 Major Canadian Energy Producers & Major Pipeline Operators• Prices of Brent, West Texas Intermediate, (WTI), &
Western Canadian Select, (WCS) From Years 2001-2012
• Conclusion
Chapter 1Overview Of Canada’s Energy Industry
Major Topics
• Canada Overview• Canada’s Reduced Revenues From Crude Oil
Discounts• Fundamentals Which Will Drive Demand For
Canada’s Crude Oil• Fundamentals Which Will Drive Demand For
Canada’s Natural Gas• Different Grades of Canadian Crude Oil
Chapter 1 Major Topics
• Canada’s East Coast Oil Fields & Beaufort Sea• Vast Oil Sands• Environmental Impacts of Oil Sands• Major Upgrading Facilities• Major Proposed Pipelines• Northern Gateway Opposition
Chapter 1 Major Topics
• Major Refineries• Existing Pipelines Which Extend Into The U.S.• Refinery Upgrades In The U.S. Which Process Heavy
Crude Oil• Prolific Natural Gas Regions• Major LNG Projects• Major Chinese Energy Transactions With Canadian
Energy Companies
Canada Overview
Canada Overview
• Canada’s Population Is Over 34 Million People• Canada Has A Vast Array of Natural Resources• Possesses One Of The Strongest Banking
Systems Globally• Comprised Of 10 Major Provinces & Three
Territories• A Contributor To Canada’s Fiscal Deficit In
2012, Was Due To Wide Price Differentials Between Brent, WTI, & WCS
Fundamental Factors Which Will Drive Demand For Canada’s Crude Oil
Fundamental Factors Which Will Drive Demand For Canada’s Crude Oil
• Global Crude Oil Demand Exceeds 90 Million Barrels Per Day
• Global Vehicle Demand Growing Very Rapidly• Total Worldwide Aircraft Expected To Double,
By 2030• Continued Geopolitical Risk In The Middle East
& Africa
East Coast Oil Fields & Beaufort Sea
East Coast Oil Fields & Beaufort Sea
• Hibernia Crude Oil Production Began in 1997, & Peaked In 2003, Reaching 220,000 Bpd
• Terra Nova Achieved First Oil In 2002, & Peaked in 2003, Reaching 125,000 Bpd
• White Achieved First Oil In 2005, & At Peak Production Produces 140,000 Bpd
• ExxonMobil Estimates That Hebron Will Ultimately Yield Over 700 Million Barrels Of Crude Oil, Over Its Reserve Life
Vast Oil Sands
Vast Oil Sands
• Canada Possesses the World’s Third Largest Oil Reserves Behind Venezuela & Saudi Arabia
• Canada Contains 1.8 Trillion Barrels Of Bitumen, Of Which 169 Billion Are Recoverable Using Today’s Technology
• Canada’s Vast Oil Sands Are Recovered Through Two Major Methods: Surface Mining, In-Situ Drilling, (SAGD)
Environmental Impacts Of Oil Sands
Environmental Impacts Of Oil Sands
• Major Environmental Impacts Include:• Land Reclamation• Reducing Fresh Water Consumption &
Implementing Recycling Water Plants• Carbon Emissions• Wildlife Safety• Tailings Ponds
Major Refineries
Major Refineries
• There Are 17 Refineries, Within Canada, Which Are Utilized To Convert Crude Oil Into Refined Products
• Major Energy Companies Within Canada Own Refineries, Which Include: Husky Energy, Imperial Oil, & Suncor Energy
• Shell, & Chevron Also Own Refineries Within Canada
Major Upgraders
Major Upgraders
• Upgraders Are Utilized To Covert Bitumen Into Synthetic Crude Oil
• Synthetic Crude Oil Is Then Sent to Refineries Where It Can Be Converted Into Refined Products
• Several Major Energy Companies Within Canada Own Upgraders, Which Include: Canadian Natural Resources, Husky Energy, Nexen, Suncor Energy, & Syncrude Canada Ltd.
Major Proposed Pipelines
Major Proposed Pipelines
• TransCanada Keystone XL Pipeline• Enbridge Northern Gateway Pipeline• Kinder Morgan TransMountain Oil Sands
Pipeline• TransCanada East Coast Pipeline• Trunkline System Conversion
Northern Gateway Opposition
Northern Gateway Opposition
• Groups Opposed To The Northern Gateway Pipeline Include: Greenpeace, The Sierra Club, & The Natural Resource Defense Council
• Environmentalists Are Concerned About Pipeline Ruptures & Increasing Tanker Traffic
• British Columbia Government Is Also Highly Opposed To Northern Gateway
Refinery Upgrades In The U.S. Which Process Heavy Crude Oil
Refinery Upgrades In The U.S. Which Process Heavy Crude Oil
• Marathon’s Detroit Heavy Oil Upgrade Project• Cenovus Energy & Phillips 66 Wood River
Refinery• Motiva Enterprises Port Arthur, Texas Refinery• BP’s Whiting Refinery
Prolific Natural Gas Regions
Prolific Natural Gas Regions
• Duvernay Shale Is Located In Alberta• Montney Shale Is Located In Alberta & British
Columbia• Muskwa Shale Is Located In Alberta• Horn River Basin is Located In British Columbia
Major LNG Projects
Major LNG Projects
• Kitimat LNG Is 50 Percent Owned By Chevron & Apache
• Prince Edward LNG Is 90 Percent Owned By PetroNas, & 10 Percent Owned By JAPEX
• LNG Canada Is A Partnership Between Shell, PetroChina, KOGAS, & Mitsubishi Corp
Major Chinese Energy Transactions With Canadian Energy Companies
Major Chinese Energy Transactions With Canadian Energy Companies
• CNOOC Purchases Nexen • Sinopec Purchases Syncrude Stake From
ConocoPhillips• PetroChina Forms Joint Venture With Encana
Chapter 2 Major Energy Producers
• Canadian Natural Resources• Cenovus Energy• Encana • EOG Resources• Husky Energy• Imperial Oil• Nexen• Suncor Energy• Syncrude Canada Ltd.• Talisman Energy
Major Canadian Energy Companies
• Core Operating Regions, Include:
• 2012 Revenues Totaled C$16.1 Billion• 2012 Net Income Totaled C$1.8 Billion• Produced An Average Of 654,000 Barrels Of
Oil Equivalent, In 2012
• Canada • West Africa
• North Sea
Cenovus Energy
• Primary Operating Region Is In Canada• Very Aggressive Plans To Increase Total Crude Oil
Production To Over 500,000 Bpd, By 2021• In 2012, Cenovus’ Revenues Totaled $16.84
Billion• In 2012, Cenovus’ Net Income Totaled $993
Million• Downstream Refineries Contribute Significantly
To Financial Performance
Encana
• Encana Is The Largest Producer Of Natural Gas, in Canada
• Encana’s Natural Gas Production Averaged 3 Billion Cubic Feet, In 2012
In 2012, Encana’s Revenues Totaled $5.1 Billion• In 2012, Encana Incurred Net Losses Totaling
$2.7 Billion
EOG Resources
• EOG Resources Has Operations In Several Regions, Which Include:
• Since 2007, EOG Has Increased Its Crude Oil & Natural Gas Liquids Production By Over 400 Percent
• In 2012, EOG’s Revenue’s Totaled $11.6 Billion• In 2012, EOG’s Net Income Totaled $570 Million
• Canada • Trinidad
• United States • China
• North Sea
Husky Energy
• Husky Energy Has Operations In Canada & In The U.S.
• Husky Is A Fully Integrated Oil Company, Which Holds Significant Acreage In Canada’s Vast Oil Sands Region
• In 2012, Husky’s Revenues Totaled C$22.74 Billion
• In 2012, Husky’s Net Income Totaled C$2.01 Billion
Imperial Oil
• Major Operating Region Is In Canada• ExxonMobil Owns 69.6 Percent Stake In
Imperial Oil• Imperial Oil Plans To Increase Its Upstream Oil
Production To Nearly 600,000 Bpd, By 2020• 2012 Revenues Totaled C$31.1 Billion• 2012 Net Income Totaled C$3.7 Billion
Nexen
• Nexen Has Operations In Several Regions, Which Include:
• In 2012, Nexen Produced An Average Of 198,000 Barrels Of Oil Equivalent
• In 2012, Nexen’s Revenues Totaled C$6.71 Billion• In 2012, Nexen’s Net Income Totaled C$333 Million• CNOOC Closed The Acquisition Of Nexen For C$15.1 Billion,
in February 2013
• Canada • West Africa
• North Sea • Gulf Of Mexico
Suncor Energy
• Suncor Is Canada’s Largest Energy Company• Suncor’s Merger With Petro-Canada Has
Greatly Enhanced Its Financial Performance• In 2012, Suncor’s Revenues Totaled C$38.6
Billion• In 2012, Suncor’s Net Income Totaled C$2.78
Billion• Produced 549,000 Barrels Of Oil Equivalent, In
2012
Syncrude Canada Ltd.
• Syncrude Canada Ltd. Operates The Largest Open Pit Mining Operation, In Canada
• In 2012, Syncrude Produced An Average Of 286,500 Bpd Of Its Synthetic Crude Oil, (SCO)
• Syncrude Has Produced Over 2 Billion Barrels Of Crude Oil, Since Its Inception
• Syncrude Operates a Management Services Agreement With ExxonMobil & Imperial Oil To Enhance Operational Excellence
Talisman Energy
• Talisman Energy Operates In Three Core Regions, Which Include: The America’s, The North Sea, & SouthEast Asia
• Talisman Produced An Average Of 426,000 Barrels Of Oil Equivalent, In 2012
• In 2012, Talisman’s Revenues Totaled $7.31 Billion
• In 2012, Talisman’s Net Income Totaled $132 Million
Chapter 2Major Pipeline Operators
• Enbridge • TransCanada
Major Pipeline Operators
Enbridge
• Enbridge’s Network Of Pipelines Extends More Than 51,000 Miles
• In 2012, Enbridge Announced C$14 Billion Worth Of Projects To Construct Over The Next Several Years
• Constructing Major Energy Infrastructure Within Canada & The U.S.
• 2012 Revenue Totaled C$25.3 Billion• 2012 Net Income Totaled C$610 Million
TransCanada
• TransCanada Has Announced More Than $13 Billion of Energy Infrastructure Projects In 2012, & Into 2013
• TransCanada’s Natural Gas Pipeline Network Extends More Than 42,500 Miles
• 2012 Revenues Totaled $8.07 Billion• 2012 Net Income Totaled $1.29 Billion
Prices Of Brent, West Texas Intermediate, (WTI), & Western
Canadian Select, (WCS)
Prices Of Brent, West Texas Intermediate, (WTI), & Western
Canadian Select, (WCS)
• From 2001-2012, Brent Prices Have Increased From $24.41 To $111.65
• From 2001-2012, West Texas Intermediate, (WTI), Have Increased From $25.91 To $94.12
• From 2004 -2012, Western Canadian Select, (WCS), Increased From $27.99 To $71.80
Conclusion• Canada Is In An Enviable Position In Relation To Other Energy
Producing Nations• Canada Is In The Early Stages Of Building Out Its Critical
Energy Infrastructure• The Canadian Government Is Determined To Progress With
Energy Projects & Is Reforming Its Regulatory Process To Expedite Energy Approvals
• Canada Has Major Opportunity To Displace Imported Crude Oil Along The U.S. Gulf Coast
• Because Canada Has Massive Energy Quantities, And Is Building Out Its Critical Energy Infrastructure, Canada Will Emerge As An Energy Superpower
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