the oil sands lifecycle - osca
TRANSCRIPT
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The Oil Sands LifecycleA look at Mining
and SAGD Operations
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Agenda
1. Who is OSCA?
2. Energy Outlook
3. Understanding Oil Sands Mining and Steam Assisted Gravity Drainage (SAGD) 101
4. Project Lifecycles
5. Current Projects - 2017 Update
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Who is Oil Sands Community Alliance (OSCA)?
• ~15 oil sands companies.
• OSCA’s members have assets or interests in the Athabasca Oil Sands Area.
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What are our Priority Areas?
Community Well-Being
Workforce
Infrastructure
Oil Sands CEO Council
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Agenda
1. Who is OSCA?
2. Energy Outlook
3. Understanding Oil Sands Mining and Steam Assisted Gravity Drainage (SAGD) 101
4. Project Lifecycles
5. Current Projects - 2017 Update
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Oil and Gas is a driving force in the Canadian Economy
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Growth in the Global Energy Mix from 2017-2040
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The World Wants Canadian Energy
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Canadian Oil Production
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Oil Sands Employment Outlook to 2020
Source: PetroLMI
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Existing headwinds
1. Market access Current 4 Mb/d oil pipeline network operating near maximum capacity. Limited takeaway capacity results in heavy discounts on Canadian crudes and
challenges investment in new and existing projects
2. Uncompetitive with United State’s The US tax system has become much more competitive and as a result, the US
economy is going to be much more attractive for investment
3. Regulatory environment: complexity, climate policy, uncertainty Canada is losing market share to U.S. producers who are growing supply while faced with less stringent environmental regulations
4. Cost Structure
Cumulative Burden
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Capital Investment in the Oil Sands
34
30
1514
12
0
5
10
15
20
25
30
35
40
2014 2015 2016 2017 2018E
Bill
ion
s o
f $
Oil sands Capital Investment
“2018 oilsands spending to be
lowest in 15 years; slower
growth to continue”
“Canada's dashed 'energy
superpower' dream”
“No new Canadian investments
without new pipelines”
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Agenda
1. Who is OSCA?
2. Current Market Trends
3. Understanding Oil Sands Mining and Steam Assisted Gravity Drainage (SAGD) 101
4. Project Lifecycles
5. Current Projects - 2017 Update
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Heavy Oil Production from Oil Sands
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OS Mining
A surface mining technique of extracting resources from the earth by their removal from an open pit or borrow using a process that begins with large trucks and shovels.
Understanding OS Mining
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Understanding SAGD
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Agenda
1. Who is OSCA?
2. Current Market Trends
3. Understanding Oil Sands Mining and Steam Assisted Gravity Drainage (SAGD) 101
4. Project Lifecycles
5. Current Projects - 2017 Update
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OS – Lifecycle Diagram
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Mining - Phase One
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Mining - Phase Two
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Mining - Phase Three
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Mining - Phase Four
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Mining - Phase Five
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SAGD – Lifecycle Diagram
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SAGD - Phase One
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SAGD - Phase Two
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SAGD - Phase Three
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SAGD - Phase Four
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SAGD - Phase Five
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Agenda
1. Who is OSCA?
2. Current Market Trends
3. Understanding Oil Sands Mining and Steam Assisted Gravity Drainage (SAGD) 101
4. Project Lifecycles
5. Current Projects - 2017 Update
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Oil Sands Mining – Projects as of October 2017
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SAGD – Projects North Athabasca as of October 2017
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SAGD – Projects South Athabasca as of October 2017
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2019 Project Updates
• Fort Hills is now operational
• Syncrude Aurora North is now operational
• $400 million expansion planned for Nexen Long Lake
• Imperial’s $2.6-billion Aspen oilsand project has been approved
• Devon Energy announced separation from its Canadian assets
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Value of Contracts Awarded to Aboriginal businesses
OSCA member companies have awarded over $9 billion worth of contracts to Aboriginal businesses in RMWB and LLB in a decade (2005-2014)
Source: OSCA and OSDG surveys
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mill
ion
s
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Procurement Spend in Alberta
In 2015 and 2016, 399 Indigenous companies from across Alberta had direct business valued at $3.33B with oil sands operators
Source: CAPP
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Procurement Spend in the RMWB
In 2015 and 2016, Indigenous companies in RMWB had direct business valued at $1.6B with oil sands operators
• Most popular categories
Camp and Catering – 21%
Construction – 19%
Electrical Equipment/Services – 18%
MRO* – 6%
Health and Safety – 4%
Water/waste water treatment – 4%
*Maintenance, Repair and Operations
Source: CAPP
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Questions?
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Appendix
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1. Market Access: Pipeline Proposal Projects