Alberta Energy Regulator Report Shows 8 Per Cent Growth in Bitumen Production and 5 Per Cent Increase in Crude Oil Production

CALGARY, ALBERTA--(Marketwired - May 29, 2014) - The Alberta Energy Regulator's (AER) annual reserves report, ST98: Alberta's Energy Reserves 2013 and Supply/Demand Outlook 2014-2023 (ST 98) shows a continued trend of increased production and stable reserves in Alberta. The 2014 ST98 notes an 8 per cent growth in bitumen production and 5 per cent increase in crude oil production. These increases led to 974 million barrels of oil being produced in Alberta in 2013.

• In 2013, Alberta produced 331 thousand cubic metres (m³) (2.1 million barrels) per day of raw crude bitumen from the oil sands, for a total of 121 million m³ (761 million barrels), or an 8 per cent increase compared with 2012.
• Alberta's 2013 crude oil production totalled 92.5 thousand m³ (582 thousand barrels) of oil per day, with a 2013 total of 33.8 million m³ (213 million barrels), which represents a 5 per cent increase over 2012 production totals.

The AER forecasts Alberta's annual raw crude bitumen production will rise to 643.9 thousand m³ (4.1 million barrels) per day for a total of 235 million m³ (1.5 billion barrels) per year by 2023.

Since 1967, Alberta has produced about 1.53 billion m³ (9.63 billion barrels) of raw crude bitumen from the oil sands and about 2.7 billion m³ (16.9 billion barrels) of crude oil since 1914.

Other report highlights include the following:

• Alberta's total remaining established crude bitumen and crude oil reserves totalled 26.8 billion m³ (169 billion barrels), consisting of 26.6 billion m³ (167.2 billion barrels) of crude bitumen and 283.4 million m³ (1.8 billion barrels) of crude oil.
• Remaining established marketable conventional gas reserves stood at 898 billion m³ (32 trillion cubic feet), a decrease of 2 per cent from 2012.
• Remaining established reserves of natural gas liquids stood at 256.3 million m³ (1.6 billion barrels), up 2 per cent from 2012.

FOR BROADCAST USE:

Alberta's energy regulator, the Alberta Energy Regulator today published its annual reserves and production report. The report notes that Alberta produced nearly one billion barrels of oil from the oil sands and through conventional drilling in 2013. The production number includes 761 million barrels of bitumen from the oil sands, and a further 213 million barrels of crude oil production.

The regulator forecasts that Alberta oil production may increase to 1.5 billion barrels per year by 2023. Alberta has produced about 9.63 billion barrels of bitumen from the oil sands since 1967, and 16.9 billion barrels of crude oil since 1914.

Backgrounder

Alberta Energy Regulator: Alberta's Reserves 2013 and Supply/Demand Outlook 2014-2023 Report

Crude Oil Reserves and Production

• Alberta's remaining established reserves of crude oil are estimated at 1.8 billion barrels
  (283.4 million m³), a 5.3 per cent increase from 2012.
• In 2013, Alberta produced 213 million barrels (33.8 million m³) of crude oil, or 582 thousand barrels (92.5 thousand m³) per day, an increase of 4.6 per cent from 2012 production. 2013 was the second year in a row that production and reserves increased; however the growth was lower than what was experienced in 2012. The rise is due to increasing production from horizontal wells, many employing multistage fracturing technology. The increases in crude oil production and reserves reverse a decades-long trend of decline.
• In 2013, 2667 oil wells were placed on production, a decrease of 14 per cent from 2012 levels.

Crude Bitumen Reserves and Production

• Alberta's total remaining crude bitumen established reserve estimate fell slightly to 167.2 billion barrels (26.6 billion m³) in 2013 from 167.9 billion barrels (26.7 billion m³) in 2012, due to production.
• In 2013, Alberta produced 761 million barrels (121 million m³), or 2.1 million barrels (331.4 thousand m³) per day, of raw crude bitumen from the oil sands, an eight per cent increase from 2012.
• Alberta raw crude bitumen production is expected to increase to 4.1 million barrels (643.9 thousand m³) per day in 2023, based on announced expansions of existing projects and commencement of new projects.
• In 2013, upgraded crude bitumen totaled 936 thousand barrels (148.8 thousand m³) per day. This corresponds to approximately 52 per cent of total raw crude bitumen production reporting to an upgrader in Alberta.(1)
• Upgraded bitumen production is forecast to increase by approximately 40 per cent to 1.3 million barrels (208.7 thousand m³) per day in 2023.

(1) Most upgrading projects use coking as their primary upgrading technology and achieve volumetric liquid yields (upgraded bitumen produced/bitumen processed) of 80 to 90 per cent. A volumetric liquid yield of 88 per cent was achieved for 2013.

Total Oil Supply and Demand

• In 2013, Alberta produced 2.7 million barrels (423 thousand m³) per day of crude oil, marketable crude bitumen, and pentanes plus. This is an increase of 7 per cent from 2012.
• In 2023, the AER forecasts production of 4.5 million barrels (708.4 thousand m³) per day, of which 3.9 million barrels per day is marketable crude bitumen (1.3 million barrels per day of upgraded bitumen-mainly as synthetic crude oil-and 2.6 million barrels per day of non-upgraded bitumen).
• Alberta's total remaining established crude bitumen and crude oil reserves includes 1.8 billion barrels of crude oil and 167.2 billion barrels of crude bitumen, which allows Alberta to remain a net supplier of oil for many decades to come.

Natural Gas Reserves and Production

• In 2013, remaining established reserves of conventional natural gas stood at 32 trillion cubic feet (898 billion m³).
• Alberta's remaining coalbed methane (CBM) reserves have been estimated at 1.8 trillion cubic feet (51.5 billion m³).
• Alberta produced 3.35 trillion cubic feet (94.4 billion m³ standardized to 37.4 MJ/m³) or 9.2 billion cubic feet (258.7 million m³) per day of marketable conventional natural gas in 2013, down 2.7 per cent from 2012.
• In 2013, Alberta produced 270 billion cubic feet (7.6 billion m³) or 0.7 billion cubic feet (20.9 million m³) per day of predominately CBM and some shale gas, a decrease of 6.1 per cent from 2012.

Ethane

• Remaining established reserves of extractable ethane is estimated at 700 million barrels (110.5 million m³).
• Production of specification ethane in 2013 increased by 7.3 per cent to 85 million barrels
  (13.4 million m³) or 232 thousand barrels (36.7 thousand m³) per day compared to 2012.

Coal Reserves and Production

• The current estimate for remaining established reserves for all types of coal is 37 billion tons (33 billion tonnes).
• Alberta's total 2013 marketable coal production was 32 million tons (29 million tonnes).

Reserves and production summary, 2013

	Crude bitumen		Crude oil		Natural gasa		Raw coal
	(million cubic metres)	(billion barrels)	(million cubic metres)	(billion barrels)	(billion cubic metres)	(trillion cubic feet)	(billion tonnes)	(billion tons)
Initial in-place	293 125	1 845	12 510	78.7	9 699	344	94	103
Initial established	28 092	177	2 970	18.7	5 522	196	35	38
Cumulative production	1 527	9.6	2 687	16.9	4 573	162	1.56	1.72
Remaining established	26 565	167	283	1.8	949b	33.7b	33	37
Annual production	121	0.761	33.8	0.213	102	3.6	0.029d	0.032d
Ultimate potential(recoverable)	50 000	315	3 130	19.7	6 276c	223c	620	683

a Expressed as "as is" gas, except for annual production, which is at 37.4 megajoules per cubic metre; includes coalbed methane natural gas.

b Measured at field gate.

c Does not include unconventional natural gas.

d Annual production is marketable.

Reserves Definitions

Initial volume in-place: the gross volume of crude oil, crude bitumen, or raw natural gas calculated or interpreted to exist in a reservoir before any volume has been produced.

Established reserves: reserves recoverable under current technology and present and anticipated economic conditions specifically proved by drilling, testing, or production, plus that judgment portion of contiguous recoverable reserves that are interpreted to exist, from geological, geophysical or similar information, with reasonable certainty.

Initial established reserves: established reserves prior to the deduction of any production.

Cumulative production: initial established reserves less cumulative production.

Remaining established reserves: initial established reserves minus cumulative production.

Ultimate potential: an estimate of the initial established reserves which will have become developed in an area by the time all exploratory and development activity has ceased, having regard for the geological prospects of that area and anticipated technology and economic conditions. Ultimate potential includes cumulative production, remaining established reserves, and future additions through extensions and revisions to existing pools and the discovery of new pools.