ALBERTA OIL SANDS - megenergy.com

1 THE FACTSALBERTA OIL SANDS :CANADA IS THE MOST REGULATED, MONITORED, TRANSPARENT & SOCIALLY RESPONSIBLE OIL PRODUCING COUNTRY IN THE WORLDof these reserves are located in ALBERTA s oil sandsCANADA HAS THE THIRD LARGEST OIL RESERVES IN THE WORLDGLOBAL ENERGY DEMAND WILL INCREASE 28% BY 2040 MANY OF THE PRODUCTS WE USE EVERY DAY ARE MADE FROM OILPHONES, MEDICAL SUPPLIES, CONTACT LENSES, FURNITURE, CLOTHING, COMPUTERS, DETERGENTS, GLUES, SOCCER BALLS, BIKE TIRES, SKIS, LUGGAGE, CAMPING GEAR, CRAYONS, ROADS ..Oil SANDS are comprised of grains of sand surrounded by a film of water and bitumen. Bitumen, a heavy and viscous oil, is solid in colder temperaturesSandWaterBitumenTHE BASICSG lobal energy consumption will increase 41% by 2050 Fossil fuels will remain the most important part of the energy mix for decadesOIL DEMAND WILL REMAIN HIGH FOR DECADESF ossil FuelsNuclearRenewables20502015In situ ( in place )

2 Technology is used to drill down into oil reservoirs and heat the oil so it can be pumped to the surfaceMining reserves are closer to the surface and accessed by trucks and shovels80% OF RESERVES ARE IN SITU, WHILE ONLY 20% OF RESERVES ARE MINEABLE IN 2019, THE WORLD IS ANTICIPATED TO USE 10 0 MILLION BARRELS OF OIL PER DAYEMISSIONSCLIMATE CHANGE LEGISLATION In 2007, ALBERTA was the first jurisdiction in North America to passMany SAGD producers use COGENERATION to produce both steam and power together on-site, and provide low cost, reliable, green electricity for AlbertaCOGENERATIONU tilizing cogeneration versus coal REDUCES ALBERTA S CO2 EMISSIONS BY OVER TWO THIRDSCANADA IS THE ONLY COUNTRY THAT CURRENTLY HAS GHG REGULATIONS IN PLACEOf the top 10 exporting oil countries,GLOBAL EMISSIONSGHG emissions associated with every barrel of oil SANDS have reduced bySINCE199031%NOW1990 Less than of global emissions come from the Canadian oil sandsCOUNTRYEXPORTER RANKCARBON PRICING INITIATIVESSAUDI ARABIA1 RUSSIA2 IRAQ3 CANADA4 YES UNITED ARAB EMIRATES5 KUWAIT6 IRAN7 VENEZUELA8 NIGERIA9 ANGOLA10OF TOTAL EMISSIONS ARE CREATED AT THE TAILPIPE70% to80%IN ALBERTA .

3 LESS THAN 1% OF IN SITU GHG EMISSIONS ARE FROM FLARINGBY LAW, ALL LAND MUST BE RECLAIMED TO ITS NATURAL STATE OF WATER IS RECYCLED IN OIL SANDS DEVELOPMENTA WELL PAD ONLY MEASURES FOOTBALL FIELDS ABOVE GROUNDBUT THE OIL RESERVOIR ACCESSED BELOW GROUND MEASURES 113 FOOTBALL FIELDS WHICH MAKES 12 TO 15 MILLION BARRELS OF OILNON-DRINKABLEWATER SOURCESMany SAGD projects use deep, LAND AND WATERON AVERAGE, IN SITU DEVELOPMENTS UTILIZE ONLY 10 - 15% OF LAND SURFACE AREA uses steam injection to heat oilSTEAM ASSISTED GRAVITY DRAINAGE (SAGD)ImpermeableCap RockSteamInjector WellProducer WellDepth in Meters320380 *not to scale80% to95%THE OIL AND GAS industry SPENT SIX TIMES MORE ON ENVIRONMENTAL PROTECTION THAN THE NEXT CONTRIBUTING INDUSTRY800 1200mIN 2017:ECONOMY ECONOMIC GROWTH Every dollar invested in the oil SANDS creates about $8 of economic activity$8 ECONOMIC ACTIVITY=$1 FOR EVERY JOB CREATED IN THE OIL SANDS5 JOBS ARE CREATEDIN OTHER SECTORS, SUCH AS GOODS AND SERVICESBC $236 BILLIONSK $160 BILLIONMB $28 BILLIONON $153 BILLIONQC $45 BILLIONNL $103 BILLIONB etween 2017 and 2027, the oil SANDS industry is expected to contribute.

4 $ TRILLIONTO THE CANADIAN GDP$15 7. 8 BILLIONIN FEDERAL TAXES$ BILLIONIN PROVINCIAL TAXESNEW HOSPITALSNEW SCHOOLSNEW INFRASTRUCTURETHE CANADIAN OIL SANDS PROVIDEDJOBS IN 2017206,298BY 2027, THIS IS EXPECTED TO GROW TO461,305 JOBS$ billion per year $9 billion per yearAlmost every region in Canada has benefitted from ALBERTA oil SANDS development through job creation and economic activityMARINERAILPIPELINEOIL IS TRANSPORTEDTHREE WAY SOF ALL VESSELS DEPARTING AND ARRIVING AT WEST COAST PORTS, LESS THAN 1% ARE TANKERS<1% OIL TANKERSO ther Commercial VesselsCANADAIMPORTED 670,000 BARRELS/DAYOF CRUDE OIL IN 2017 NORWAY40,200 BBL/D AZERBAIJAN53,600 BBL/D SAUDI ARABIA100.

5 500 BBL/D NIGERIA 40,200 BBL/D USA 355,100 BBL/D CANADAOF OIL & GAS PRODUCTSBY PIPELINE IN CANADAARE TRANSPORTED SAFELY from a lack of diversified oil & gas markets and stands to lose more if INFRASTRUCTURE is not builtCANADA LOSES $50 MILLION A DAYSINCE THE 1930 S, OIL TANKERS HAVE MOVED REGULARLY & SAFELY ALONG CANADA S WEST COASTMARKET THE OIL SANDS SPENT OVER $7 BILLIONDOING BUSINESS WITH INDIGENOUS OWNED COMPANIES FROM 2013 TO 2016 COMMUNITIES IN 2015 & 2016 THE OIL SANDS INVESTEDin indigenous communities, such as school and youth programs, cultural events, literacy projects & other programs$ MILLION IN COMMUNITY INITIATIVES INDIGENOUS BUSINESS IN THE OIL SANDS IS GROWING65 COMMUNITIES INVOLVEDFROM 2013-2016 FROM 2013-2016 11 72399 COMPANIES INVOLVEDTHE PARTICIPATION RATE OF INDIGENOUS PEOPLE IS TWICE AS HIGH IN THE ENERGY SECTOR COMPARED TO THE TOTAL CANADIAN LABOUR FORCEINDIGENOUS OWNED COMPANIES FROM ACROSS ALBERTA HAD DIRECT BUSINESS (GOODS & SERVICES)

6 WITH OIL SANDS OPERATORSIN 2015 AND 2016 TRAINING AND EMPLOYMENT, LOCAL ENGAGEMENT OPPORTUNITIES ON PROJECT PLANS, TAX CONTRIBUTIONS, FUNDING, AND VOLUNTEER SUPPORT TO LOCAL CHARITIES AND COMMUNITY-BASED ORGANIZATIONSOIL SANDS COMPANIES ARE ACTIVE IN COMMUNITIES BY PROVIDING1. Community Involvement , 2016, Oil SANDS Community Alliance Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers 3. 2018 Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas , 2018, Canadian Association of Petroleum Producers 2018 Economic Report Series: A Global Vision for the Future of Canadian Oil and Natural Gas , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Market Snapshot.

7 Imports of crude oil decreased in 2017 , 2018, National Energy Board $50 Million a Day , 2013, Canadian Chamber of Commerce Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers 2017 Pipeline industry Performance Report , 2017, Canadian Energy Pipeline Association Get the facts on oil tanker safety in Canada , 2016, Transport Canada Tanker Safety by the Numbers , 2016, Transport Canada Oil SANDS : Land Use and Reclamation , 2016, Natural Resources Canada Oil SANDS : Land Use and Reclamation , 2016, Natural Resources Canada MEG Energy Christina Lake Regional Project , 2016, ALBERTA Energy Regulator 4.

8 Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Environmental Innovation: Water , 2016, Canadian Association of Petroleum Producers ALBERTA s Oil SANDS : The Facts , 2014, Government of ALBERTA Environmental Regulation: An International Comparison of Leading Oil and Gas Producing Regions , 2014, Canadian Association of Petroleum Producers & WorleyParsons 2. Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers 100 Million Barrels Per Day , 2018, Arc Energy Research Institute International Energy Outlook 2017 , 2017, Energy Information Administration International Energy Outlook 2017 , 2017, Energy Information Administration Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027)

9 , 2017, Canadian Energy Research Institute "Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027) , 2017, Canadian Energy Research Institute Canadian Economic Contribution , 2017, Canadian Association of Petroleum Producers Economic Impacts of Canadian Oil and Gas Supply in Canada and the US (2017-2027) , 2017, Canadian Energy Research Institute ALBERTA s Oil SANDS : The Facts , 2014, Government of ALBERTA FOR THIS DOCUMENT WAS SOURCED FROM THE FOLLOWING:1. Oil SANDS : GHG Emissions , 2016, Natural Resources Canada Top oil exporters: Who's pricing carbon? , 2018, Canadian Association of Petroleum Producers Canada s Oil SANDS , 2018, Canadian Association of Petroleum Producers Upstream Petroleum industry Flaring and Venting Report , 2016, ALBERTA Energy Regulator Cogeneration Options for a 33,000 BPD SAGD Facility.

10 Greenhouse Gas and Economic Implications , 2016, Canadian Energy Systems Analysis Research Supporting Co-Generation through ALBERTA s Climate Leadership Plan , 2017, Oil SANDS Community Alliance GHG Emissions , 2017, Canada s Oil SANDS An Overview of Various Provincial Climate Change Policies across Canada and their Impact on Renewable Energy Generation , 2016, Energy Regulation Quarterly