2011 Oil Sands Report Card Lars Christian Bacher, president of Statoil Canada
2012-04-25 Strategic Context
Unconventionals are key to our strategy
Upstream focused Attractive outlook for adding value through Revitalise NCS upstream oil and gas selective midstream with high value barrels positions
Continue Create value portfolio management from a superior to enhance value gas position Technology creation increasingly important Continue to leverage for access, value and further develop Production above 2.5 million technology positions creation boe/d in 2020 and growth
Apply technology Build material to expand in positions in 3-5 new unconventionals offshore business Safe and sustainable clusters Position as industry performance a leader in HSE and competitive Develop a carbon efficiency leading global advantage exploration company
2 2012-04-25 Statoil in North America
Strategic positions across North America
3 2012-04-25 Substantial resources in Canadian oil sands
Rationale Reserves
300 • Significant reserve additions 265 250 • Competitive fiscal and royalty 211 174 200
regimes 151 143 150
102
• Strong cash flow barrels billion 92 100 60 47 • Technology upside 37 50 30 25 21 20
0
Iran Iraq Russia Libya Qatar China Canada Kuwait Nigeria Venezuela Abu Dhabi Saudi Arabia Kazhakhstan United States
Source: Canadian Association of Petroleum Producers
4 2012-04-25 Cash flow for a typical SAGD plant
5 2012-04-25 Kai Kos Deseh projects
6 2012-04-25 Leismer Demonstration Project
SAGD* facility
• Rated capacity 18,800 boe/d (based on SOR** 3.0) • First oil January 2011 (efficient ramp up of production) • Current production ~ 14,000 boe/d • More than five million barrels produced to date • Demonstration plant providing valuable operational experience • Technology pilots
* Steam-assisted gravity drainage ** Steam to oil ratio
7 2012-04-25 Successful start up
8 2012-04-25 Land
ü Land reclamation
ü 182 000 seedlings planted in 2011
ü OSLI land stewardship collaboration
9 2012-04-25 Water
ü No surface water used in production ü Observation and monitoring wells
ü Surface water monitoring ü Reduced liquid discharge
10 2012-04-25 Biodiversity
ü Non-linear seismic lines
ü Scat study to evaluate animal population
ü Reclamation
Photo: Paul Tessier
11 2012-04-25 Global energy-related emissions
Canada’s two per cent
Global emissions
GHG emissions from oil sands: § just over 1/1000th of global GHG emissions § 6.5% of Canada’s GHG emissions § 29% reduction in intensity from 1990
Sources: 1. U.S. Dept. of Energy/EIA 2. Environment Canada
12 2012-04-25 West Texas Intermediate Canadian Heavy (Bow River) Kg CO2e per barrel Saudi Medium (ave) refined products Average US Domestic Crude (2005) Mexico-Maya) Average US Barrel Consumed (2005) Canadian Oil Sands: Mining Dilbit Venezuela-Bachaquero Canadian Oil Sands: Mining Bitumen Canadian Oil Sands: SAGD Dilbit Average Oil Sands Imported to United States (2009) Canadian Oil Sands: Mining SCO Nigeria Light Crude Canadian Oil Sands: SAGD Bitumen Venezuelan Partial Upgrader California Heavy Oil Canadian Oil Sands: SAGD SCO Middle East Heavy Oil CSS Bitumen
0 50 100 150 200
Crude production Crude upgrading
Crude transport Crude refining Distribution of refined products
13 2012-04-25 CO2 Ambition
14 2012-04-25 Strong progress during 2011
15 2012-04-25 Working with our neighbours
ü Working with Aboriginal and Metis nations
ü Local Opportunity Centre established
ü Capacity building in Northern Alberta
ü Ski Fit North programme supports youth in local schools
16 2012-04-25 Committed to transparency
17 2012-04-25 2011 Oil Sands Report Card
Lars Christian Bacher President, Statoil Canada
www.statoil.com
18 2012-04-25