Lac La Biche Chamber of Commerce

June 28, 2017

Agenda

1. Who is OSCA and 2017 Priorities2. Oil Sands Update3. Closing Remarks

OSCA - Oil Sands Community Alliance

OSCA’s Vision

To pursue innovative solutions that help to build thriving communities and shared value with our neighbours and enables the responsible growth

of Canada’s oil sands.

We facilitate engagement, build relationships and collaborate to create measurable socio-

economic benefits.

OSCA OverviewMembers and Mandate Area

• ~15 oil sands companies.

• Assets or interests in the Athabasca Oil Sands Area.

OSCA OverviewGovernance and Focus Areas

Infrastructure

Community Well-Being

Oil Sands CEO Council

CAPP Oil Sands Executive Policy

Group

Workforce

OSCA Overview2017 Priorities

• Bill 21 and municipal taxation • Fire Recovery• Infrastructure• Monitor emerging opportunities and issues

Source: Syncrude

1. Evacuation, Logistics, Critical Infrastructure 2. Incident Command System (ICS) and Training 3. Alberta Energy Regulator (AER) Coordination 4. Industry Liaison Role 5. Communication and Information Sharing

Horse River Wildfire Lessons Learned Themes

2016 LLB Stakeholder Session Priorities

• Transport and Safety • Economic Development • Essential Services• Workforce and Education • Governance and Leadership

Source: Syncrude

10

Oil Sands Update

Gov’t policy and other changes create uncertainty for industry:

Climate Leadership Plan

Environmental Policy (Methane & Caribou)

Regulatory Uncertainty

MGA Implementation

Oil prices have fallen dramatically:

$90$40

2014 2016

May 2016 Wildfire

U.S. Gov’t

$50

2017

New reality

What Price Do We Get For Our Oil?

Source: CAPP

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

20

11A J O

20

12A J O

20

13A J O

20

14A J O

20

15A J O

20

16A J O

20

17A

US$

/bb

l

Brent Spot

WTI NYMEX

Cdn Lt Swt

WCS

Oil Sands Capital Investment

Source: CAPP

0

5

10

15

20

25

30

35

40

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

E

20

17

F

$ Billions

Oil Sands Capital Investment -

YOY% Change

2016/15 2017/16

-26% -12%

Oil Sands Projects Cancelled or Deferred

2017 Oil Sands Production Forecast

Source: CAPP Crude Oil Forecast, Markets & Transportation 2017 – Page 4

Oil Sands Employment to 2020

Conclusion

• Collaboration• Competitiveness • Growth to Operation• Global Energy Mix

Questions