actual

1. Hydro, wind, and other renewables forecast actual Conventional heavy oil NGLs Coalbed methane Conventional natural gas Mined and in situ bitumen Conventional L&M oil Coal Figure 1 Total energy production in Alberta

2. Figure 1.1 OPEC crude basket reference price 2007

4. actual forecast High Low Figure 1.3 Price of WTI at Chicago

5. actual forecast High Low Figure 1.4 Average price of oil at Alberta wellhead

6. 600 500 400 300 200 100 Figure 1.5 2006 Average monthly reference prices of Alberta crudes Figure 1.5 2007 average monthly reference prices in Alberta

8. high actual forecast low Figure 1.7 Average price of natural gas at plant gate

9. actual forecast Figure 1.8 Alberta Wholesale Electricity Prices

11. Figure 1.10 Canadian economic indicators

12. actual forecast Figure 1.11 Alberta real investment Source: Statistics Canada, Canadian Association of Petroleum Producers *includes support activities to mining and oil and gas extraction

14. actual forecast Non upgraded bitumen SCO Pentanes plus Heavy Light-medium Figure 3 Alberta supply of crude oil and equivalent

15. Figure 4 Total marketable gas production and demand 10.7 actual forecast 7.1 5.3 3.6 1.8 25% 27% 31% 41% 50% 0 Tcf

16. Bitumen* - includes producing and evaluation wells Gas** - includes CBM wells Other *** - includes unsuccessful, service, and suspended wells Figure 5 Drilling Activity in Alberta, 1948-2007

17. EUB Prorationing Plan (restricted production) Major Oil Field Discoveries 1947 – Leduc 1948 – Redwater 1949 – Golden Spike 1952 – Bonnie Glen 1953 – Pembina 1957 – Swan Hill 1959 – Judy Creek 1959 – Swan Hill South 1965 - Rainbow Major Events Affecting Price 1973 – Oil Embargo 1979 – Iranian Revolution 1980 – Iran / Iraq War 1986 – OPEC Crumbles 1990 – Gulf War 1998 – Asian Econ. Crisis 2001 – 9 / 11 2003 – Iraq War Export Pipelines 1950 – Interprovincial Pipeline (Enbridge) 1953 – Trans Mountain Pipe Line 1938 - Petroleum and Natural Gas Conservation Board (EUB) created to enforce production standards Source: Prices - CAPP Statistical Handbook Figure 6 Alberta Conventional Crude Oil Production and Price

18. Alberta Oil Sands Project Startup Great Canadian Oil Sands (Suncor) Startup Syncrude Startup Cdn$/cubic metre Figure 7 Alberta mined bitumen and synthetic crude oil production and price

19. Cdn$/cubic metres Figure 8 Alberta in situ bitumen production and price

20. Hurricanes Katerina and Rita hit U.S. Gulf Coast Foothills Pipe Lines built for gas exports to California and the mid-western U.S. Late 1998: Northern Border/TCPL expansion 2000: Alliance Pipeline 1956: TransCanada Pipelines built to take Alberta gas to central Canada and the U.S. after debate over its charter in Parliament PGT expansion Regulated gas price tied to oil prices. Surplus built up Surplus gas drives down prices Price deregulation Arbitration awards price increase Gas prices as a by-product of oil production. Price less than replacement cost Figure 9 Historical natural gas production and price

21. Figure 10 Sulphur closing inventories in Alberta and price

22. Late 1990’s – mine closures and reduced coal exports due to depressed coal prices 1970’s – increase in coal-fired electric generation 1952 – Beginning of change to diesel-electric trains 1950’s – Crude oil and natural gas replace coal as energy source of choice Late1960’s – Beginning of exports to Japan for steel industry 1898 – Expansion of railway network (coal and oil fired steam engines) and growth of population 1960 – Steam rail era ends Coal remained “King Coal” until huge reservoirs of crude oil and natural gas were discovered Figure 11 Historical coal production and price Australian-Japan contract price for thermal coal (Australian Bureau of Agricultural and Resource Economics - ABARE)

24. Figure 2.2 Remaining established reserves under active development

30. Figure 2.8 Alberta crude oil and equivalent production

31. Production (103 m3/d) Figure 2.9 Total in situ bitumen production and producing bitumen wells

32. Peace River OSA Athabasca OSA Synthetic Crude Oil Cold Lake OSA Figure 2.10 In situ bitumen production by oil sands area (OSA)

33. Experimental Production SAGD Production CSS Production Synthetic Crude Oil Primary Production Figure 2.11 In situ bitumen production by recovery method

34. actual forecast Surface mining In situ Figure 2.12 Alberta crude bitumen production

35. actual forecast Synthetic crude oil Synthetic Crude Oil Figure 2.13 Alberta synthetic crude oil production

38. Oil Sands Plants – Coke Inventory Synthetic Crude Oil Figure 2.16 Alberta oil sands upgrading coke inventory

39. actual forecast Nonupgraded bitumen removals from Alberta SCO removals from Alberta Synthetic Crude Oil Alberta demand (mainly SCO) Figure 2.17 Alberta demand and disposition of crude bitumen and SCO

40. Figure 3.1 Remaining established reserves of crude oil Heavy Light-medium

41. Figure 3.2 Annual changes in conventional crude oil reserves

42. Figure 3.3 Annual changes to waterflood reserves

43. Total number of pools (103m3) Initial reserves (103m3) Remaining reserves (103m3) Figure 3.4 Distribution of oil reserves by size

44. Figure 3.5 Oil pool size by discovery year

46. Figure 3.7 Geological distribution of reserves of conventional crude oil

48. Figure 3.9 Alberta’s remaining established oil Reserves versus cumulative production