CAPP presentation by CAPP President, Dave Collyer on June 14th, 2011

1. Canadian Oil & Gas Industry Outlook
CADE Technical Luncheon
Calgary - June 14, 2011
Dave Collyer, President

2. Current Canadian Industry Trends
• A period of political transition
Federal
Key provinces (BC, AB, ON)
• Increasing divergence between crude oil & natural gas markets &
business outlook……with commensurate shifts in activity
• Increasing pressure on cost structure & skilled labor availability as
activity ramps up
• Increasing interest by Asian investors
• Evolving public policy and regulatory context
• Increasing collaboration among producers & along value chain to
address reputation / social license issues

3. Western Canadian Land Sales
ALBERTA SASKATCHEWAN BRITISH COLUMBIA
3.0 1.2 3.0
Alberta record sale
June 1/2011 $841mm
Yr-to-date = $1.8 billion
2.5 1.0 2.5
2.0 0.8 2.0
$ billions
$ billions
$ billions
1.5 0.6 1.5
1.0 0.4 1.0
0.5 0.2 0.5
0.0 0.0 0.0
2007 2008 2009 2010 YTD 2007 2008 2009 2010 YTD 2007 2008 2009 2010 YTD
2011 2011 2011
PRIMARILY OIL NATURAL GAS

4. Total Wells Drilled in Western Canada
2009 2010 2011E
Alberta 5,297 7,090 8,340
British Columbia 632 552 520
28 000 Dry/Susp. Saskatchewan 1,979 2,517 2,660
Gas Manitoba 220 439 580
24 000
Oil
2007
20 000 = 18,000
2008
= 16,100
16 000 2011 E
= 12,100
2010
= 10,702
12 000 800
2009
= 8,137 2,700
8 000
4 000 8,600
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 E
Source – CAPP. Based on Rig Release

5. Industry Capital Spending
Cdn $billions
Oil & Gas Investment Spending:
2009: $34 billion
2010: $42 billion (estimate)
2011: $46 billion (forecast)
Northern Canada
2009 2010E 2011F
$0.2 $0.5 $0.3
Oil Sands
2009 2010E 2011F
$11 $13 $16
East Coast Offshore
Western Canada 2009 2010E 2011F
2009 2010E 2011F $1.7 $2.5 $3.0
$20 $26 $27 `09 `10E `11F
AB $12 $15 $17
BC $5 $7 $5
Note: SK $3 $4 $5
Excludes spending mergers & acquisitions

6. Oil-Directed Well Licences Issued in
W. Canada (Cumulative)
10 000
9 000 Emerging “Tight Oil”
8 000 Opportunities
7 000
6 000
5 000 2011
4 000
2010
3 000
2006 - 2008
2 000
2009
1 000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Nickle’s DOB

7. CAPP Conventional Oil Production
Forecast (2011 vs 2010)
1200 2011 Forecast
2010 forecast
1000
Thousand bbls/day
800
600
400
200
0
2010 2013 2016 2019 2022 2025

8. Canadian Oil Sands and Conventional Oil
Production Forecast (2011-2025)
5,000
Actual Forecast
4,500
4,000
Atlantic Canada
3,500
In Situ
thousand bpd
3,000
2,500
2,000
Mining
1,500
1,000
Conventional Heavy
500 Conventional Light
Pentanes/Condensate
0
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

9. W. Canada Natural Gas Production
WCSB Field Receipts:
18 2008 – 15.7 bcf/d
2009 – 14.7 bcf/d
2010 – 14.3 bcf/d
17
billion cubic feet per day
2007
16
2008
15
2010
14
2011
2009
13
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: FirstEnergy Capital

10. Gas-Directed Well Licences Issued in
W. Canada (Cumulative)
18 000
16 000 Slowdown in gas /
CBM drilling
14 000
12 000
10 000
2006
8 000
6 000
2007 & 2008
4 000
2009 & 2010
2 000
2011
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Nickle’s DOB

11. Cdn. Natural Gas Production Forecasts
(Recovery and Continued Low Price Cases)
20
Price Recovery Case
18 Mackenzie Delta
16
14 Eastern Canada
12
Horn & Cordova
Bcfd
10
8 Montney
6
4 CBM
Note: Prices recover to at least a level of $5.50/GJ
2
Conventional
0
2005 2008 2011 2014 2017 2020
20
18
Continued Low Price Case
16
14
12
cfd
10
B
8
6
4
2 Note: Prices do not exceed $4/GJ over the forecast period
0
2005 2008 2011 2014 2017 2020

12. Contribution to Upstream Revenue
(% of Total Revenue by Commodity)
100%
90%
As a Percent of Total Revenues
80% Natural Gas
70%
60%
Oil Sands
50%
40%
30%
20%
Crude Oil and Liquids
10%
0%
1990 1995 2000 2005 2010 2015
Source: CAPP, ARC Financial Corp.
12

13. Canada’s Oil & Gas Industry Outlook
• “3E” policy & regulatory framework
Environmental performance
Economic growth
Energy security / reliability
• Industry Priorities:
Competitiveness
• Fiscal, Regulatory, Market Access
Social license
• Performance + Communication
• Key Enablers:
Technology & innovation
Collaboration
• Key Challenges:
Environmental performance
People – capacity & skills