“We are a stable, reliable producer in a volatile, unpredictable world.”

Prime Minister Stephen Harper, July 14, 2006

“How we produce and use energy is fundamental to our economic recovery, but also our security and our planet.”

President Barack Obama,

February 19, 2009

Ensuring the Energy, Environmental,

& Economic needs of North America

The Canadian Oil Sands:

2

• Canada has formally associated with the Copenhagen

Accord

• Submitted an economy-wide emissions reduction target for

2020 of 17% below 2005 levels

• Aligns with target and base year of the United States

• Committed to providing a fair share of quick-start funding for

developing countries

• Canada also support the G8 partners’ goal of reducing

global emissions by at least 50% by 2050; and developed

countries reducing GHG emissions by 80% or more by

2050

Ensuring

Environmental

Stewardship

Canada’s GHG Policies We are committed to advancing global action.

Canada’s GHG Policies

3

Canada’s GHG Policies

Ensuring

Environmental

Stewardship

We are taking aggressive action to achieve our objectives.

• Energy Efficiency

• Residential houses, buildings, transportation, integrated communities

• Vehicle tailpipe CO2 emissions regulations

• Fuel Diversity

• Support for Next Generation Biofuels

• Increased use of natural gas in transportation

• Renewable fuels standards

• Greener energy system:

• Innovative new technologies such as geothermal and smart electrical grid

• CCS demonstration projects in electricity and other sectors

4

Canada’s GHG Policies

• Canada and the US will have to be leaders in clean

energy to meet our GHG emissions objectives

• Clean Energy Dialogue established in 2009:

• Carbon Capture and Storage – cleaning fossil fuels

• Electricity Sector – smart grid technologies

• Research and Development – for next generation

technologies

• Building on vehicles, we’re working with the U.S. on

compatible GHG regulatory regimes

Ensuring

Environmental

Stewardship

We are working with the U.S. to address these issues

5

Canada US Energy Trade (2008)

Providing

Energy

Security

Canada’s energy exports to the US = $122 billion

23MMWh

55MMWh

524

Bcf3629

Bcf

676MMb

Electricity Crude Oil Natural Gas

1% 13% 15% % of US

$3.8 Billion $61 Billion $33 Billion Consumption

Canadian exports satisfied 9% of total US demandCross-border direct investment in energy – $90 billion

6

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

7

Canada – Your Largest & Most Secure Energy Supplier

0 500 1,000 1,500 2,000 2,500

* 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

8

Oil Reserves by Country

2520 19

3037

44

60

9899104

115

138

175

264

0

50

100

150

200

250

300

billio

n b

arr

els

Can

ad

a

Saudi A

rabia

*

U.A

.E.*

Venezuela

*

Nig

eria*

Ira

n*

Lib

ya*

Kazakhsta

n

Russia

United S

tate

s

* OPEC Member Source: Oil and Gas Journal, 2009

Ira

q*

Kuw

ait*

Providing

Energy

Security

These Fourteen Countries

Represent 91% of the Planet’s

Oil Reserves

Qata

r*

Chin

a

9

Oil Sands are Essential as we Transition to a Lower Carbon Economy

Providing

Energy

Security

• Canada is investing in renewable and cleaner fossil fuels, and committed to energy efficiency

• Canada’s oil sands are part of a global shift to heavier crudes

• The transition to a lower carbon economy will take time - oil will be a dominant fuel for decades

• This transition will involve reducing emissions from oil, as well as adopting new energy sources

27%

33%

21%

19%

Coal

Oil

Gas

Non-Emitting

World Energy Outlook

Primary Energy Demand 2007

Primary Energy Demand 2030*

18%

30%

20%

32%

* This scenario assumes

atmospheric CO2

stabilization at 450 ppm

10

Global Crude Supply

~80% of the world’s known oil

reserves are state controlled or

managed by national oil

companies

~20% is openly accessible to

market based development

Canada’s oil sands represent

~60% of the world’s accessible

oil

Providing

Energy

Security

Source: Reserves by country data from the Energy information Administration, 2009

11

Early stages of development – 7 billion barrels

recovered to date

170 billion barrels of proven recoverable reserves

The second largest proven concentration

of oil in the world

A mixture of sand, clay, water and a

heavy oil called bitumen

What are the Oil Sands?

Providing

Energy

Security

12

Regulations

The Provinces have primary jurisdiction over the development of their resources:

• Mines and Minerals Act

• Oil Sands Tenure Regulations

• Oil Sands Conservation Act

The Government of Canada has important levers:

• Canadian Environmental Assessment Act

• Fisheries Act

• Canadian Environmental Protection Act

• Migratory Birds Convention Act

• Species at Risk Act

Ensuring

Environmental

Stewardship

Canada’s oil sands are subject to a strict regulatory regime

13

The Facts – Land Use

• Most future development will be drilled rather than mined

• After over 40 years of development, the total area disturbed

by mining is 232 mi2 – about the size of Chicago

• The mineable area (1,900 mi2) represents one-tenth of 1% of

Canada’s 1.2 million mi2 of boreal forest

• Companies are financially obligated to restore land to

productive status – 12% has already being reclaimed

• Alberta holds $820 million in reclamation security bonds from

industryEnsuring

Environmental

Stewardship

14

The Facts – Fresh Water

Ensuring

Environmental

Stewardship

Mined Oil Sands

• 75% of the water is recycled

• Amounts to less than 1% of average flow of Athabasca River

• Governments have set withdrawals limits from the river

• 3-4 barrels of water per barrel of oil sands crude

Drilled Oil Sands (in situ)

• 90% of the water is recycled

• New projects are increasingly using non potable water

• 1 barrel of water per barrel of oil sands crude

Tailings Ponds

• Producers not permitted to return wastewater to river

• Regulations in place to reduce the amount of tailings

• No evidence has been found that groundwater contamination

from the tailings ponds is leaching into the river

15

The Facts – Greenhouse Gas Emissions

GHG Emissions by

Country

Canada’s GHG Emissions

by Sector

Other 3%

Oil Sands 5%

Agriculture 8%

Buildings 11%

Industrial 14%

Electricity

Generation 17%

Oil & Gas 17%(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%

16

GHG Emissions in Perspective

Ensuring

Environmental

Stewardship

17

New Technologies

• Investing in carbon capture and storage

• Quest project will inject 1.1 m tonnes of CO2 per year

• The Alberta Carbon Trunk Line

• Game-changing Technologies

• Solvent Assisted Drilling

• Toe to Heel Air Injection (THAI)

• New Tailings Pond Technologies

• Extract water from tailings to create a solid landscape

Ensuring

Environmental

Stewardship

18

Toe-to-Heel Air Injection

1. Steam injected down vertical

and horizontal wells

Source: Petrobank Energy

2. Air injected down vertical

well initiates combustion

3. Combustion front advances

4. Oil and vaporized water

flows from toe to heel

5. Refining and

transport to market

19

Economic Benefits

Oil Sands Heavy Hauler Trucks

• The 200th Caterpillar 797 hauler

delivered April 2009

Oil Pipeline Construction

• Billions of dollars of pipelines being built

• Using steel and creating jobs

• Major regional economic stimulus

Refinery expansions underway

• Several expansions and modifications

are underway

• Providing significant jobs and

local benefits

Generating

Economic

Benefits

20

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

3,1006,000

800

800

1,000

2,300

3,200

6,800

3,900

2,900

27,3004,800

4,000 3,200

7,200

14,600

10,600

7,600

20,300

10,5005,200

4,700

4,800

7,000

8,400

10,300

13,200

13,800

1,700

1,6007,700

4,0009,300

19,400

800

1,700

1,000

1,200

1,000

21

Summary:

Providing Energy Security

• Safe, secure and reliable energy

• Large energy resource potential

Ensuring Environmental Stewardship

• Strict regulations

• Technology advances

Generating Economic Benefits

• Jobs and revenues across North America

• American investment flows back to the U.S.

Generating

Economic

Benefits

Environment

Economy

Energy

23

Oil Sands Production TechnologiesIn 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

Mining

24

Pipelines

New proposals

Expansion of existing lines

Existing lines

Oil sands deposits

Developed oil sands

Providing

Energy

Security

25

Economic Benefits

The 200th Caterpillar 797 hauler delivered April 2009

Lafayette,

Indiana

Amite,

Louisiana

Decatur,

Illinois

Joliet,

Illinois

Lexington,

South Carolina

Fort McMurray,

Alberta