Strathcona County. Living.Refined.

Transcription

1 Strathcona County Living.Refined.

2 Agenda What is Strathcona County? Strathcona County By The Numbers Alberta s Industrial Heartland Association Adding Value to Alberta Future Outlook Opportunities & Challenges Conclusion 09/06/12 2

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4 Strathcona County Map 09/06/12 4

5 What is Strathcona County? It is a unique specialized municipality, with a mix of rural and urban lifestyles, located on the eastern boundary of the City of Edmonton, the provincial capital. It is 1265 sq. km. in land area. The County is made up of a major urban area being Sherwood Park, and a large rural area made up of farms, acreages and smaller hamlets. 09/06/12 5

6 County s Vision Statement 09/06/12 6

7 Stats Canada Update Feb Canada 5.9% Alberta 10.8% Edmonton 11.2% Calgary 10.9% Strathcona 12.1% Edmonton CMA 11.8% Calgary CMA 12.9% Strathcona 92,490 Sherwood Park 64,733 Rural 27,757 Growth 9,979 Urban 13.9% Rural 8.2% Total 12.1% Last 20 years 62.9% Average rate 2.45% Since 2006 Yellowhead County Lethbridge County 09/06/12 7

8 Strathcona by the Numbers: Business in the county: over 8,000 (Hoovers) Served by both CN and CP Rail Rural Roads 1,304 km Urban Roads 368 km Highways provincial 232 Transit Buses: 95 Golf Courses 8 Play grounds 8 Sports Fields and ball diamonds 230 Major facilities 10 Community Halls 14 Senior Centers 4 Green Routine Waste Diverted 65% 09/06/12 8

9 Land Use Breakdown Park 3% Water and Roads 10% Industrial 6% Commercial 1% Residential 12% Agricultural 68% 09/06/12 9

10 2012 County Tax Base 09/06/12 10

11 Economic Drivers 09/06/12 11

12 Industrial Development Vast amount of light, medium and heavy industrial located in Strathcona County, throughout the Capital Region Heavy Industrial is located in two main areas within Strathcona County: Alberta s Industrial Heartland Home to 15 world scale facilities Strathcona Industrial Area Home to 12 world class facilities 09/06/ January 7, 2010

13 Alberta s Economic Engine Alberta s Industrial Heartland is one of the key engines helping drive the Alberta, and Canadian Economy Activity at existing operations provide a significant economic boost to the economy of the region, province and country Major project pending or underway will inject billions into the local economy Potential provincial and national energy strategies will help foster development into the future Future prospects will continue to enhance the importance of the region 09/06/12 13

14 Alberta s Industrial Heartland Association (AIHA) was formed in 1998 as a cooperative effort of the Counties of Lamont, Strathcona, Sturgeon and the City of Ft. Saskatchewan and, in 2010, the City of Edmonton Industrial region defined by a Complimentary Area Structure Plan (CASP) developed to take advantage of the natural assets the area has to offer 09/06/12 14

15 Five Municipalities working together to coordinate: Land Use Planning Infrastructure Development Transportation Business Development Marketing and Promotion Efforts Government Relations Communications 09/06/12 15

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17 Existing Industrial Base Canada s largest hydrocarbon processing center home to 15 world scale facilities responsible for 43% of national basic chemical manufacturing Major center for Petroleum Refining (400 Mbdp capacity) Bitumen Upgrading (250 Mbdp expanding to 400 Mbpd capacity) Petrochemical Production (Ethylene, Styrene, Fertilizers) Natural Gas Fractionation and Processing A variety of other specialty products Approximately $1 billion in annual expenditure (excluding feedstocks) 7,500 full time direct employees 09/06/12 17

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19 Heartland Companies in Strathcona County 09/06/12 19

20 Scotford Upgrader Projected Capacity 280,000 bpd Phase 1 100,000 bpd Future Phase Debottlenecking 85,000 bbl/day Peak Construction Labor Force Operating Labor (1st Phase) 175+ Projected Capital $12.8 Billion including mine in Ft. McMurray 09/06/12 20

21 Shell Refinery Shell Upgrader Expansion One Shell Chemicals Construction storage 09/06/12 21

22 Sasol Canada Optioned the site from Total. Future study required for 48,000 bpd facility. If built 5,000 construction jobs, 500 fulltime jobs. 09/06/12 22

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24 Turn Around Activity Maintenance turn arounds at existing plant involve thousands of contractors and millions in local expenditures Dow Chemical (April 2012) Agrium Redwater (2012) Alberta Envirofuels (Fall 2012) Shell (Annually starting 2012) 09/06/12 24

25 Pipelines and Terminal Activities Kinder Morgan- Expansion of terminal to support Trans- Canada enhancement Enbridge Pipelines Terminal and pipeline starting point for Northern Gateway project. New tanks proposed at Stonefell (8-12).Pipeline up North Interpipeline Polaris diluent terminal and pipeline expansion Access Pipeline 42 dilbit pipeline to add 350,000 bpd capacity (potential for future expansions Keyra Energy Diluent pipeline connecting their operation in Strathcona area and Fort Saskatchewan to the Heartland 09/06/12 25

26 Bitumen Upgrading Process Delayed Coking Removes carbon from the bitumen to produce SCO 15% of input is converted into petroleum Coke Lower yields, but lower operating costs Hydro Cracking Adds hydrogen to the bitumen to crack the molecules into SCO Higher operating cost, but higher yields Requires a source of hydrogen 09/06/12 26

27 The Value Chain From raw natural resources to consumer ready products, there are a number of processing steps that take place. This is called the value chain as each step increases the value of the raw resource. 09/06/12 27

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29 Oil Sands Are Big Potential Proven Sources: Canadian Association of Petroleum Producers, World Gold Council, CIA Market value of oil sands based on 173 billion barrels proven reserves and 1.5 trillion barrels of resources, US$100 WTI, US$50 bitumen 09/06/

30 Diesel Can Access The World Market Growth Markets It s easier when you don t need a refinery on the other end 09/06/

31 Future Oil Production 3.50 Non upgraded bitumen Synthetic Crude Oil (SCO) 1.50 Million Barrels/Day 1.00 Pentanes plus 0.50 Heavy Light medium /06/12 31

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35 Upgrading Project Estimates Estimates on additions to upgrading capacity are based on the following assumptions regarding new projects or expansions to existing projects by New Upgraders North West Upgrading 150,000 bbl/day (new) 3 phases Voyageur 200,000 bbl/day (new) Sasol GTL facility Proposed 48,000 bbl/day Expansions/Debottlenecking (*) Syncrude 100,000 bbl/day Suncor 100,000 bbl/day CNRL 100,000 bbl/day Shell Scotford 85,000 bbl/day Nexen/OPTI 50,000 bbl/day (*) Notes increase in upgrading capacity beyond existing levels 09/06/12 35

36 Pipelines in Strathcona County We have over 2800 km of high pressure pipelines between 10 to 36 in diameter Our urban area of Sherwood Park (population of over 67,000) has 17 pipelines adjacent to residential areas Products: Crude oil, condensate/diluents, natural gas, butane, ethane, hydrogen 09/06/12 36

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40 Carbon Capture and Storage $2 billion program by Albertan and Canadian governments to establish a CCS system Three separate projects in the Heartland will make the region CCS ready Enhance Energy s Alberta Carbon Truck Line project to receive $500 million in government support 09/06/12 40

41 Future Outlook Investment is returning to the Heartland New economic conditions creating new and unique opportunities Challenges Regulatory timelines, Inflationary pressures, Government Policy 09/06/ January 7, 2010

42 Opportunities and Challenges Preparing for development in such a rapidly changing world Managing growth Pressures on municipal infrastructure and funding Getting the government of Alberta to understand and address our issues. How do we engage industry as a partner in the region How do we effectively communicate with residents on development issues. Attracting and retaining employees in a hot market /06/12 42 January 7, 2010

43 Conclusion 1. Strong growth in Alberta for % - In Strathcona County estimate of 3.0% 2. Price of oil in $95-$100 USD 3. Housing starts of Average house price $425, New retail market growth of over 300,000 sq.ft 09/06/ January 7, 2010

44 Thank you for your attention! Sources of Information: Chamber, EDT, Corporate Planning Alberta Industrial Heartland, Strathcona Industrial Area Government of Alberta Treasury and Enterprise, CAPP, CERI, Shell, NWR Partnership Stats Canada 09/06/12 44