Cold Lake
In Situ Projects Tucker Lake Mining Projects
NYSE:DVN slide 9
Oil Sands
Key Current Issues
• Land usage – Boreal Forest disturbance • Fresh water usage/impact • Greenhouse gases
In situ – oil sands more than 60 m deep
Steam Assisted Gravity Drainage (SAGD)
Cyclic Steam Process
Source: Canadian Centre for Energy Information
Oil Sands Projects
Issue Session 2.7 Canadian Unconventional Sources of Fossil Fuels
World Energy Congress Chris Seasons - Devon Canada September 14, 2010
Major Canadian Basins
Conventional Resources Small volumes that are easy to develop
Primary
Canadian Resource Pyramid
Gas
Increased Operating Challenges
Unconventional Resources Large volumes that are difficult to develop
Land Usage
• All disturbed land must be reclaimed by law
• Surface disturbance per barrel (SAGD) 1-2% vs. conventional oil in Canada • New tailings management technologies being employed to dramatically reduce time to reclaim lands • Reuse technologies being employed to reduce the size of tailings ponds • Increased well density per pad, low impact pipelining developed in conjunction with Government of Alberta
Oil Sands
GHG Technology Solutions
Energy Efficiency
• Low Energy extraction
– – – 35oC instead of 80oC = 1/3 less energy Working on lower temperatures Petrobank Whitesands – THAI process
Secondary (e.g., Water Flood) Tertiary (e.g., CO2Flood) Thermal (e.g., SAGD) Shales
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slide 3
Improved Technology
Increased Cost
Mining 3% Mining 20%
Oil Sands Land Use
(140,200 km2)
In Situ 80%
In Situ
(Minor Surface Disturbance)
97%
Source: CAPP NYSE:DVN slide 12
Oil Sands
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slide 14
Oil Sands
Greenhouse Gases
• Focus on decreasing intensity per barrel production
• 39% intensity decrease since 1990 • Currently 5-15% greater emissions on a full cycle basis vs. U.S. crude supply average • Technology concentrating primarily on lowering energy usage
• Underground combustion rather than steam
• Additives to reduce the need for both water and energy (steam)
– – LASER (Imperial), SAP (Cenovus), N-Solv SC-SAGD (Laricina), SOLVE (Statoil/PTRC)
60
0
Saudi Mexico Iraq Venezuela Nigeria US Gulf Coast California Oil Sands Thermal Mining Upgraded Bitumen In situ oil In situ oil In situ oil sands - sands - sands Diluent Upgraded Bitumen Bitumen Bitumen
U.S. Domestic
Oil Sands
120
114
100
116 108 105
113
•
102 98
102
102
106
104
Range of Common U.S. Imported Crude Oils
On a life cycle basis, oil sands have similar GHG emissions to other sources of oil Full cycle emissions or “wells to wheels” is the appropriate measure to use in setting carbon policies
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slide 13
Oil Sands
Fresh Water Usage
• High proportion of water recycled and continues to improve
– Imperial Cold Lake: 85% reduction over 30 years • Some in situ (SAGD) projects use no fresh water (saline water > 4,000 ppm TDS) • Fresh water withdrawals from Athabasca River closely monitored and are less than 2% of volume • New technologies focusing on less intensive use of water
In Three Deposits
Fort Hills Horizon Joslyn Creek Syncrude Dover Peace River Seal Suncor Muskeg River Albian Kearl Lake Northern Lights
Firebag
MacKay River
Tight Gas Sands Coal Bed Methane Shale Gas Gas Hydrates
Source: CAPP NYSE:DVN

slide 4
Increased Cost
Conventional
Improved Technology
Conventional Resources Small volumes that are easy to develop
g CO2e/MJ gasoline
80
•
Approx 55% of 2008 oil sands production
Approx 40% of 2008 oil sands production
40
20
Approx 5% of 2008 oil sands production
No current production (likely future scenario)
GHG Emissions from Production and Refining GHG Emissions from Gasoline Consumption
Source: Jacobs Consultancy Life Cycle Assessment Comparison for North America and Imported Crudes, June 2009 NYSE:DVN slide 16
Billions of Barrels
175 136 115 102 99 92 60 44 36 30 21
Source: Oil & Gas Journal/CAPP NYSE:DVN
slide 6
Canadian Crude Oil Production
• Carbon Capture and Storage (CCS) most effective at large conventional sources
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slide 15
Full Cycle GHG Emissions
140
Common U.S. Conventional Oil Imports