REFINING ALBERTA’S ENERGY ADVANTAGE

UNPRECEDENTED OPPORTUNITIES IN OIL SANDS DEVELOPMENT

ALBERTA’S OIL SANDS

CLEARWATER

DEPOSIT

ALBERTA’S OIL RESERVES

Saudi Arabia Canada Iran Iraq Kuwait Abu Dhabi Venezuela Russia Libya Nigeria U.S.

264

179

133115 102

92 8060

39 3621

Canada, with 179 billion barrels in oil reserves, ranks 2nd only to

Saudi Arabia

ALB

ERTA

- 17

5

“Investable” World Oil Reserves

“Investable” represents reserves associated with political regimes open to foreign investment (excluding Iraq)

Total = ~350 Billion Barrels

Athabasca Athabasca

Peace RiverPeace River

Cold LakeCold Lake

Heavy Heavy OilOil

EdmontonEdmonton

LightLight OilOil

Norway2%

Nigeria11%

USA6%

Kazakhstan9%

Other20%

Canada52%

97% of total Canada oil reserves are found in Alberta

THE OIL SANDS RESOURCE

Majority of the resource can only be recovered using in situ technologies

Oil Sands Projects In Three Deposits

PeaceRiver

Athabasca

ColdLake

Edmonton

Calgary

Ft. McMurray

In Situ ProjectsMining Projects

Muskeg RiverAlbian

Christina Lake

Cold LakeWolf Lake/Primrose

Hilda Lake

Cold Lake

Tucker Lake

Peace River

Peace River Fort

McMurray

Fort Hills

Horizon

Joslyn Creek

Syncrude

SuncorMacKay River

Firebag

Hangingstone

Long Lake

Surmont

Foster Creek

Jackfish

Kearl Lake

Jackpine

Sunrise

Northern Lights

Whitesands

Seal (Blackrock)

ALBERTA SUPPLY OF MARKETABLE CRUDE OIL AND EQUIVALENT

SCO

HeavyPentanes Plus

Light - Medium

Non-upgraded Bitumen

Alberta supply of crude oil and equivalent – ERCB May 2008

0

100

200

300

400

500

600

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

103 m

3 /d

actual forecast

Non upgraded bitumen

Light-medium

SCO

Pentanes plusHeavy

1.9 mmb/d

3.4 mmb/d

Resources Maximization - Integration

From bitumen production to value added

processing

Fuel ProductsDiesel

KeroseneGasolineHydrogen

PetrochemicalsEthylene

PropyleneButadieneAromatics

FertilizersAmmonia SynGas

Ammonium SulfateElemental Sulfur

BitumenIntegration Processing

(upgrading, refining & petrochemical processing)

Largest Feedstock Opportunity in North America

• Integrated upgrading and refining provides access to the C1 to C8 value chains

• Upgrader and refinery off-gases will become increasingly important sources of petrochemical feedstock

• Bitumen upgrading in Alberta will reach 3.0 million BBL/day by 2020 and Upgrader bottoms production will exceed demand for:

– Energy generation in the region (as bottoms or coke)

– Energy generation in export markets (as coke)

• Outcome: this will result in 300 000 - 750 000 BBL/day “Stranded Upgrader Bottoms” and an opportunity for Alberta to become the leading syngas producing region in the world.

“Strategically Imperative” Products for Alberta’s Petrochemical Cluster Development

RAW MATERIALS FEEDSTOCKSBUILDING BLOCKS COMMODITIES INTERMEDIATES FINAL PRODUCTS

Methane/ refinery residue

Syn GasMethanol

Ammonia

Acetic Acid

Urea, AN

C2-C3/ Naphtha

EthyleneEthylene

Oxide

EG

Polyethylenes**

C2-C3/ Naphtha

PropylenePropylene

Oxide

Polypropylene

Propylene

Glycols

Refinery off-gas/ Naphtha

Butanes

Butenes

Maleic

AnhydrideBDO

Naphtha BenzeneCyclohexane

Phenol Cumene

BPA

Naphtha Tolueneo-Xylene

p-Xylene

C2

C3

C4

C6

PTA

Phthalic Anhydride

VAM

UAN7

6

4

4

5

5

Total: 31**Derived from initial 77 chemicals selected plus polypropylene

** Includes LDPE, LLDPE and HDPE

Natural Gas/ Crude Oil /Bitumen/ Condensate

Natural Gas / Crude Oil / Bitumen/ Condensate

Natural Gas / crude Oil / Bitumen Condensate

Crude Oil/Bitumen

Crude Oil/Bitumen

Crude Oil/Bitumen C7,8

C1

Value-Added Policy DevelopmentBitumen Royalty In Kind

• As owners of the energy resource, Albertans share in the benefits of rising commodity prices and resource development

– Generate more revenue for Albertans

– GOA volumes create a liquid marketplace

• Government’s supply of bitumen is strategic volume to enhance value-added processing

– Create a stream of bitumen supply that companies can access on a term basis for projects that create value to the bitumen resource in the Province.

• Considerations

– Do not penalize existing upgraders

– Minimize ongoing policy uncertainties to investors

– Open and transparent process

A WORLD CLASS ENERGY HUB

Peace RiverPeace River

AthabascaAthabasca

Cold LakeCold Lake Industrial Heartland

TO ASIA

TO THE USA

UPGRADER SUPPLY CHAIN OPPORTUNITY

GEA UPGRADERS: AN ILLUSTRATIVE VIEW

Refinery

Petrochemical and Processing Plant

Existing Upgrader

Proposed Upgrader

Natural Gas Processing

Sturgeon County

Strathcona County

Lamont County

City of Fort Saskatchewan

PetroCanada 350,000 bpd

Agrium (Fertilizer Plant)

Northwest 150,000 bpdWilliams

Propylene Splitter

BA Energy150,000 bpd

Shell Chemicals

Shell Current: 155,000 bpd

Shell Refinery

StatOil/NAOS250,000 bpd

Total E&P Canada Phase 1: 130,000 bpdPhase 2: +70,000 bpd

Dow Chemical

BP Energy Canada

Keyera Energy

PetroCanada Refinery

Imperial Oil Refinery

Proposed: 700,000 bpd

Provident Fractionation

Facility

City of Edmonton

Alberta Advantage in the 21 Century

• Secure and abundant resources• Access to North American and world markets• Lowest overall taxes in Canada • Strong Economy• Government strong financial position and no public debt

• Stable political system

• Transparent, non-discriminatory regulatory process

• Huge demand for products and services driven by oil sands industry • Well-known in many international markets for:

• Strong conventional oil and gas related technologies, equipment and services• Heavy oil related technology and expertise

• Modern infrastructure and strong support services

• Capable and highly educated workforce

• Zoned heavy industrial sites

• A welcoming society tolerant to culture differences

• Well-established R&D community with a proven track record

Alberta – An Emerging Energy Hub

OPPORTUNITIES

Investment and Trade

Petrochemical Clusters

Supply Chain

Innovation

Skilled Labour

Infrastructure

Environment

Research and Development

PARTICIPATE IN ALBERTA’S GROWTH

www.alberta-canada.com