CERI Commodity Report Natural Gas

May 1 CERI Commodity Report Natural Gas Natural Gas Vehicles (NGVs) in Canada Paul Kralovic Jurisdictions eager to address GHG emission issues are increasingly turning their attention to the transportation sector, challenging the sector s overwhelming use of petroleum-based fuels, such as gasoline and diesel. In Canada, the largest emitter of GHG emissions is the oil and gas sector, followed closely by the transportation sector. Figure 1 illustrates GHG emissions in Canada, by economic sector between 199 and 1. With GHG emissions increasing 3 percent between 199 and 1 in the transportation sector, it is important to note that while the emissions of passenger vehicles, measured in megatonnes of CO equivalent, has decreased (from 51. in 199 to 3.1 in 1), the GHG emissions from passenger light trucks (from.3 in 199 to 3.1 in 1) and freight trucks (from 9.7 in 199 to 5.7 in 1) has increased. 1 Light trucks include the rapidly growing sport utility vehicles (SUVs). Figure 1 Greenhouse Gas Emissions by Economic Sector, Canada, 199 to 1 Source: Environment and Climate Change Canada CERI Commodity Report Natural Gas Editorial Committee: Paul Kralovic, Dinara Millington, Megan Murphy, Allan Fogwill About CERI The Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in 1975. Our mission is to provide relevant, independent, objective economic research in energy and related environmental issues. For more information about CERI, please visit our website at www.ceri.ca or contact us at info@ceri.ca. In Ontario, for example, the transportation sector is the single-largest emitter. As of 13, the sector accounts for 35 percent, followed by industrial emissions at percent and the building sector accounting for 19 percent. 3 The transportation sector is also the singlelargest emitter in Québec as well. In both jurisdictions, the largest slice of the transportation sector is road transportation using gasoline and diesel, with off-road, propane and natural gas, civil aviation, railways and navigation (marine) comprising relatively smaller shares. Not surprisingly, both Ontario and Québec are beginning to address the pollution-related issues of the transportation sector. In addition to both jurisdictions imposing a cap and trade system, similar to California, limiting GHG pollution from industry in the province, both are taking further initiatives to reduce GHG emissions in the transportation sector. 5 Ontario s latest step in fighting climate change is the soon-to-be-released Climate Change Action Plan, building on their new goal of reducing GHG emission 15 percent below 199 levels by, 37 percent below 199 levels by 3 and by percent below 199 levels by 5. The plan is to transition Ontario households and businesses away from fossil fuels to adopting lowand no-carbon energy, impacting the way Ontarians commute, build and heat their homes. Among the key measures of the Climate Change Action Plan includes a target of 1.7 million electric or hybrid cars on the road by, as well as a five percent cut in carbon emissions from gasoline and diesel. 7 The Climate Change Action Plan also indicates that Ontario will spend up to C$1 million to expand the use of electric and natural gas as fuel for trucks, via additional fueling stations provincewide, developed from the input of the Ontario Trucking Association, Union Gas, Enbridge Gas and others. In addition, a new Green Commercial Vehicle Program to launch in 17 will include up to C$17 million in incentives for adopting electric and natural gas commercial vehicles. 9 These aforementioned programs are preceded by the Drive Clean motor vehicle emissions testing, enacted years ago; Ontario requires that all vehicles seven years old and older must have their cars checked every two years so that emissions do

Page not exceed government-set standards. 1 The Government of Ontario also announced other measures in the February 1 provincial budget aimed at controlling downstream emissions; motorists will be paying a new gasoline emissions tax in 17 that will average approximately.3 cents/litre. 11 For additional information, please refer to the April 1 issue of CERI Commodity Report Crude Oil. Québec, on the other hand, has the goal of electric or hybrid vehicles making up 5 percent of all light passenger vehicles, to help reduce GHG emissions by 7.5 percent below 199 levels by 3. 1 In utilizing alternative fuels for vehicles, many eyes are focused on electric or hybrid cars, particularly with batteries and other forms of energy storage technology becoming cheaper and more reliable. This is led by the industries success story, Tesla Motors. But what about natural gas vehicles (NGVs)? While the petroleum-based fuels for vehicles is being challenged, not many are discussing natural gas as a transportation fuel. This article reviews natural gas as a transportation fuel as well as the implementation of NGVs in Canada. Natural Gas as a Transportation Fuel With many applications for end-users, including power generation, space and water heating, the popularity of natural gas is not a surprise. Its use as a transportation fuel is, however, limited. Natural gas use in the transportation sector accounts for only 1 percent; compared to industrial (3 percent), residential (1 percent) and electricity generation (13 percent). 13 NGVs use either compressed natural gas (CNG) or liquefied natural gas (LNG), the two terms are not interchangeable. CNG is gas compressed to between 3, and 3, pounds per square inch (psi), and moves through a pressure regulator and into a spark-ignited or compression ignition engine. 1 Most vehicles utilize the spark-ignited engines, working in a similar way to gasoline engines, in that the fuel-air mixture is compressed and ignited by a spark plug. 15 Some heavyduty vehicles utilize the compression ignition engine; these engines use small amounts of diesel fuel to facilitate ignition. As such, some of these engines are considered dual-fuel in that they can burn diesel or natural gas. LNG, on the other hand, is natural gas cooled to -1 C, reducing its volume by a factor of while turning it into a liquid. The latter is stored in doublewalled steel tanks and vapourized before injection into the engine. 1 Light- and medium-duty vehicles tend to utilize CNG while heavy-duty vehicles tend to utilize LNG, most likely due to the costs of the LNG storage tanks. 17 Medium- and heavy-duty vehicles generally include line haul trucking, return-to-base trucks, transit and shuttle busses, as well as refuse trucks. Many of these are factory-built vehicles and do not include NGVs for specific mining applications, such as in the oil sands industry. Truck manufacturers, such as Kenworth, Peterbuilt and Freightliner specifically manufacture natural gas trucks. 1 In addition, Ford and General Motors have added bi-fuel trucks to their inventory of vehicles. Light-duty vehicles, on the other hand, include taxis, courier services and passenger cars. While several manufacturers globally sell bi-fuel passenger cars, including Fiat, Opel/General Motors, Peugeot, Volkswagen, Toyota and Honda, these vehicles are difficult to purchase in North America. The Honda Civic GX was a factory-built NGV manufactured for the North American market but production ended in 15. 19 It is, however, possible to retro-fit gasoline and diesel engines to natural gas. After-market conversions cost approximately C$,, but vary depending on the number of storage cylinders. Most of the NGV conversions are considered bi-fuel, utilizing both gasoline and natural gas. 1 There are several advantages to NGVs. First, with the advent of shale gas, there is an abundance of natural gas in North America, making the fuel affordable. Advances in horizontal drilling, 3-D seismic technology and hydraulic fracturing (fracking) have created a glut of natural gas on the continent. Second, due to high production levels, particularly in the Marcellus Shale, combined with the amount of natural gas in storage, the natural gas is cheap. As of May 1, the average monthly spot price at Henry Hub is US$1.9 per MMBtu, its lowest point since March 1 when the natural price ended up at US$1.73 per MMBtu. This is the lowest since December 199. 3 The average price of natural gas in filling stations in the Greater Toronto Area is between 1 and 15 percent less than gasoline. Third and perhaps the most important from the climate change perspective, it is the cleanest burning fossil fuel, largely due to the fact that natural gas consists primarily of methane, the lowest carbon content of any fossil fuel,

Page 3 as well as possessing a higher energy content by mass. 5 Diesel, on the other hand, for example, contains a long chain of hydrocarbons and a high level of carbon-content aromatics, as well as a lower energy content by mass than natural gas. As a result, natural gas combustion reduces carbon emissions by an estimated -5 percent compared to conventional fuels. 7 NGVs lower emissions of other air contaminants, such as nitrogen and sulfur oxide. CNG produces a 1 percent reduction in GHG emissions on a well-to-wheels lifecycle basis compared to diesel, while LNG produces a 3 percent reduction relative to diesel. Argonne National Laboratory's GREET model, however, estimates the life cycle petroleum use and greenhouse gas (GHG) emissions of light-duty vehicles utilizing CNG and LNG, which emit approximately -11 percent lower levels of GHGs than gasoline throughout the fuel life cycle. 9 These numbers are likely higher for medium- and heavy-duty vehicles. Due to increasingly stringent regulations for all vehicles, the gap between conventional fuel and NGVs is narrowing. 3 Because natural gas burns so clean, maintenance costs are also lower for NGVs. Adoption for medium- to heavy-duty NGVs is limited in Canada. Several reasons may be responsible. Implementation There are approximately. million vehicles globally that utilize natural gas, including 15, in the US and 1, in Canada. 31 The top nations: Iran (.1 million), China (. million), Pakistan (3.7 million), Argentina (.5 million), India (1. million) and Brazil (1. million). 3 These nations either possess large natural gas reserves or their governments price CNG lower than gasoline. In Canada, NGVs were first introduced in 195. 33 Backed by federal and provincial assistance, the population of light-duty NGVs grew to 35, by the early 199s; this number, however, declined to approximately 1, NGVs as of 1, including 15 urban transit buses, 5 school buses, 9,5 light-duty cars and trucks and, forklifts. 3 Reflecting the decline in NGVs, the number of refueling stations have declined from 13 in 1997 to 7 in 1, with the bulk of stations in British Columbia and Ontario. While there has been a slight rebound in the past several years, there are currently 9 stations in Canada. 35 This is compared to more than 1,3 NGV fueling stations in the US. 3 Despite calls for government support, NGVs in Canada are limited in their implementation. The decline in the use of NGVs in Canada has led to a decrease in natural gas facilities, many of which do not cater to larger fleet vehicles. The majority of NGVs in Canada are fleet vehicles, including refuse trucks, taxi cabs and transit and shuttle buses. Privately-owned passenger vehicles account for a small percentage of use and suffer from a lack of supporting refueling infrastructure. NGVs are also competing with other alternative fuels that are considered ahead of natural gas, including electric cars. While the future of light-duty NGVs is more challenging, that may not entirely be the case, however, for medium- to heavy-duty vehicles. While the majority of NGVs globally are cars or two- and three-wheeled vehicles, 37 the future of NGVs in Canada and the US seems to be in medium- to heavy-duty vehicles. Heavy diesel vehicles in Québec, for example, emit percent of the GHGs in the transportation sector in the province, while only accounting for percent of vehicles. 3 Not surprisingly, the province is offering tax breaks for LNG trucks. Recall, it was only several years ago when Boucherville-based Robert Transport purchased 1 Peterbuilt LNG trucks from Westport HD. 39 The fleet was to be utilized along the Ontario- Québec 1/Highway corridor between Québec City and the GTA. Moving away from petroleum-based fuels to alternative fuels still has an appeal for jurisdictions to lessen the environmental impact of the transportation sector, particularly for fleet vehicles, while meeting increasingly stringent carbon goals. While electric vehicles are drawing more attention, natural gas use in the transportation sector will likely have an increased role in the future.

Page Endnotes 1 Environment and Climate Change Canada, Greenhouse Gas Emissions by Economic Sector, https://www.ec.gc.ca/ indicateurs-indicators/default.asp?lang=en&n=fdb7-1 ibid 3 Ontario Government, Climate Change Strategy, https:// www.ontario.ca/page/climate-change-strategy#section- Gaz Metro Transport Solutions, Natural Gas for Heavy Haul Transportation, http://www.gazmetrost.com/images/ GMST_ang.pdf 5 Ontario Government, Newsroom, Cap and Trade System to Limit Greenhouse Gas Pollution in Ontario, April 13, 15, https://news.ontario.ca/opo/en/15//cap-and-tradesystem-to-limit-greenhouse-gas-pollution-in-ontario.html Ontario Government, Climate Change Strategy, https:// www.ontario.ca/page/climate-change-strategy#section- 7 The Globe and Mail website, Ontario to spend $7-billion on sweeping climate change plan, May 1, 1, http:// www.theglobeandmail.com/news/national/ontario-to-spend-7 -billion-in-sweeping-climate-change-plan/article391/ Ontario Government, Climate Change Action Plan, https:// www.ontario.ca/page/climate-change-action-plan 9 Today s Trucking website, Ontario to Invest in Green Trucks, Natural Gas Network, June 1, 1, http:// www.todaystrucking.com/ontario-to-invest-in-green-trucksnatural-gas-network 1 CERI Commodity Report Crude Oil, Downstream Emissions: Mitigation Efforts in Canada, Jon Rozhon, April 1. 11 ibid 1 CBC News, Québec sets bold new greenhouse gas reduction targets, September 17, 15, http://www.cbc.ca/news/ canada/montreal/québec-greenhouse-gas-reduction- 1.331951 13 Canada s Natural Gas, Supply-Demand, http:// www.canadasnaturalgas.ca/supply-demand/ 1 Alternative Fuels Data Center, Natural Gas Fuel Basics, http:// www.afdc.energy.gov/fuels/natural_gas_basics.html 15 Alternative Fuels Data Center, Natural Gas Vehicles, http:// www.afdc.energy.gov/vehicles/natural_gas.html 1 Alternative Fuels Data Center, Natural Gas Fuel Basics, http:// www.afdc.energy.gov/fuels/natural_gas_basics.html 17 ibid 1 Northwest Territories, Energy Facts, Natural Gas: A Fuel for the Future, 1, http://www.pws.gov.nt.ca/pdf/ EnergyFactSheets/Natural%Gas%-%A%Fuel%for% the%future.pdf 19 Green Car Report, Honda Civic Hybrid, Natural-Gas Models Eliminated After 15, June 1, 15, http:// www.greencarreports.com/news/19733_honda-civic-hybrid -natural-gas-models-eliminated-after-15 Natural Resources Canada, Natural Gas Applications, http://www.nrcan.gc.ca/energy/alternative-fuels/fuel-facts/ natural-gas/357 1 Enbridge website, Vehicle Conversions, http:// www.ngvontario.com/views/vehicle-conversions.aspx US Energy Information Administration, Natural Gas, Henry Hub Natural Gas Spot Price, Monthly, June 1, http:// www.eia.gov/dnav/ng/hist/rngwhhdm.htm 3 ibid Enbridge website, Fast Facts about Natural Gas Vehicles, http://www.ngvontario.com/media/ngv_facts1-95.pdf (pp. 1) 5 Natural Resources Canada, Natural Gas Use in the Canadian Transportation Sector: Deployment roadmap, December 1, http://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/oee/pdf/ transportation/alternative-fuels/resources/pdf/roadmap.pdf (pp. ) ibid 7 Canadian Natural Gas Vehicle Alliance, Vehicles & Stations, http://www.cngva.org/en/home/vehicles-stations.aspx Natural Resources Canada, Natural Gas Use in the Canadian Transportation Sector: Deployment roadmap, December 1, http://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/oee/pdf/ transportation/alternative-fuels/resources/pdf/roadmap.pdf (pp. 5) 9 Alternative Fuels Data Center, Natural Gas Vehicle Emissions, http://www.afdc.energy.gov/vehicles/ natural_gas_emissions.html 3 ibid 31 NGV Journal, Worldwide NGV Statistics, http:// www.ngvjournal.com/worldwide-ngv-statistics/ 3 ibid 33 Alberta Transportation, Natural Gas Vehicles in Alberta, http://www.transportation.alberta.ca/content/doctype57/ Production/NGVBrief.pdf (pp. 1) 3 Markbek, Study of Opportunities for Natural Gas in the Transportation Sector, March 1, submitted for Natural Resources Canada, http://www.xebecinc.com/pdf/marbek- NGV-Final-Report-April-1.pdf (pp. 9) 35 NGV Journal, Worldwide NGV Statistics, http:// www.ngvjournal.com/worldwide-ngv-statistics/ 3 ibid 37 Markbek, Study of Opportunities for Natural Gas in the Transportation Sector, March 1, submitted for Natural Resources Canada, http://www.xebecinc.com/pdf/marbek- NGV-Final-Report-April-1.pdf (pp. ) 3 Gaz Metro Transport Solutions, Natural Gas for Heavy Haul Transportation, http://www.gazmetrost.com/images/ GMST_ang.pdf 39 Westport website, Westport Announces Robert Transport Order for 1 Peterbilt LNG Trucks Powered by Westport HD Systems, October, 1, http://www.westport.com/ news/1/robert-transport-orders-1-peterbilt-lng-truckspowered-by-westport-hd-systems

Page 5 Henry Hub/AECO-C Beginning of Next Month Spot Price (US$/MMBtu) Henry Hub/Chicago Beginning of Next Month Spot Price (US$/MMBtu) Differential Henry Hub AECO-C 1 1 1 - Jan-5 Jul- Jan- Jul-9 Jan-11 Jul-1 Jan-1 Jul-15 15 Differential Henry Hub Chicago 13 11 9 7 5 3 1-1 -3-5 -7 Jan-5 Jul- Jan- Jul-9 Jan-11 Jul-1 Jan-1 Jul-15 SOURCE: CERI, Platts Gas Daily Price Guide. SOURCE: CERI, Platts Gas Daily Price Guide. Henry Hub/Rockies Beginning of Next Month Spot Price (US$/MMBtu) Chart Title Henry Hub/Southern California Beginning of Next Month Spot Price (US$/MMBtu) 15 Differential Henry Hub Rockies 13 11 9 7 5 3 1-1 Jan-5 Jul- Jan- Jul-9 Jan-11 Jul-1 Jan-1 Jul-15 15 Differential Henry Hub Southern California 13 11 9 7 5 3 1-1 Jan-5 Jul- Jan- Jul-9 Jan-11 Jul-1 Jan-1 Jul-15 SOURCE: CERI, Platts Gas Daily Price Guide. SOURCE: CERI, Platts Gas Daily Price Guide.

SOURCE: Canadian Gas Association. SOURCE: CERI, Canadian Gas Association, Statistics Canada. Page 7 5 3 1 9 7 5 3 1 Canadian Heating Degree Days 5-Year Avg. 15 1 US Heating Degree Days 5-Year Avg. 15 1 SOURCE: NOAA. SOURCE: CERI, NOAA, EIA. Canadian Heating Degree Days vs Residential and Commercial Consumption Degree Days BCFPD 1, 7 Degree Days Consumption 1, 5 3 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 US Heating Degree Days vs Residential and Commercial Consumption Degree Days 1, BCFPD Degree Days Consumption 1, 5 3 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 CERI Commodity Report - Natural Gas

SOURCE: NOAA. SOURCE: Environment Canada. SOURCE: NOAA. SOURCE: Environment Canada. Page 7

SOURCE: NOAA. SOURCE: Environment Canada. SOURCE: NOAA. Page CERI Commodity Report - Natural Gas

NOTE: As of January 1, StatsCan changed the content and methodology of Canadian natural gas consumption. Users should use caution comparing current data with historical data SOURCE: Statistics Canada. SOURCE: Statistics Canada, NEB. SOURCE: EIA. SOURCE: EIA. Page 9 Canadian Consumption By Sector (Bcfpd) 1 Industrial & Power Commercial Residential 1 1 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 US Consumption By Sector (Bcfpd) 1 1 Industrial Electric Power Commercial Residential 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 Canadian Marketable Production By Province/Region (Bcfpd) 1 BC, Yukon, NWT AB SK E. Coast 1 1 1 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 US Marketable Production (Bcfpd) 9 US Total Louisiana GOM Federal Waters Texas 7 5 3 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1

Page 1 BC, Yukon, NWT Marketable Production (Bcfpd) 5. 1 15 1. 3.. 1.. Saskatchewan Marketable Production (Bcfpd) 1. 1 15 1.5. 1 1 1 1.5.5. Alberta Marketable Production (Bcfpd) 1 15 1 East Coast Marketable Production (Bcfpd) 1 15 1 SOURCE: Statistics Canada, NEB. SOURCE: Statistics Canada, NEB. SOURCE: Statistics Canada, NEB. SOURCE: Statistics Canada, NEB. CERI Commodity Report - Natural Gas

Page 11 1 1 1 1 1 9 7 5 3 1 System Field Receipts TransCanada + Westcoast; Monthly Average (Bcfpd) 1 15 1 Canadian Gas Exports to the US By Export Point - West (Bcfpd) Kingsgate Monchy Elmore Huntingdon Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-1 Apr-1 1 1 1 1 Alberta System Deliveries (Bcfpd) Empress McNeill AB-BC Alliance May-15 Jul-15 Sep-15 Nov-15 Jan-1 Mar-1 May-1 Canadian Gas Exports to the US By Export Point - East (Bcfpd) Emerson Iroquois Others Niagara 5 3 1 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-1 Apr-1 SOURCE: CERI, TCPL, Westcoast Energy. SOURCE: NEB. SOURCE: NEB. Note: Alliance deliveries were not available between Dec. 1/15 and Jan. 1/1. SOURCE: CERI, TCPL, Alliance Pipeline.

SOURCE: NEB. SOURCE: NEB. SOURCE: NEB, EIA. SOURCE: NEB. Page 1 US Imports of Canadian Gas By US Region (Bcfpd) 1 West Midwest East 1 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-1 Apr-1 Total US Pipeline Gas Imports (Bcfpd) 1 1 Canada Mexico 1 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-1 Mar-1 1 1 3 1 Average Canadian Export Price By US Region (C$/GJ) West Midwest East Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-1 Apr-1 Canadian Gas Imports By Import Point (Bcfpd) Courtright Sarnia St. Clair Other Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-1 Apr-1 CERI Commodity Report - Natural Gas

Page 13 Eastern US LNG Imports By Facility (Bcf) US GoM LNG Imports By Facility (Bcf) 1 Cove Point Elba Island Everett NE Gateway Neptune Freeport Lake Charles Sabine Pass Cameron Golden Pass Gulf LNG 1 1 1 Apr-1 Jul-1 Oct-1 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1 Apr-1 Apr-1 Jul-1 Oct-1 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1 Apr-1 SOURCE: US. DOE. SOURCE: US DOE. US LNG Imports By Origin (Bcf) Volume-Weighted Average LNG Price (US$/MMBtu) 1 1 15 1 Other Nigeria Trinidad Norway Qatar Yemen 1 15 1 1 1 1 5 Apr-1 Jul-1 Oct-1 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1 Apr-1 SOURCE: US DOE. Note: There were no LNG imports for the month of November 1. SOURCE: US DOE.

Page 1 SOURCE: US DOE, NEB. SOURCE: US DOE. US LNG Exports by Destination (Bcf) US LNG Re-Exports By Destination (Bcf) 1 1 Japan Taiwan Brazil India UAE Portugal Argentina 7 Turkey Brazil Egypt India 5 3 1 Apr-1 Jul-1 Oct-1 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1 Apr-1 Apr-1 Jul-1 Oct-1 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1 Apr-1 SOURCE: EIA, US DOE. SOURCE: US DOE. CERI Commodity Report - Natural Gas

Page 15 North American Active Rigs Canadian Rig Fleet Utilization Weekly Average Active Rigs 3,,5 US WCSB 1, 9 Active Rigs Total Rig Drilling Fleet, 1,5 7 5 1, 3 5 1 Jan- Jan-7 Jan- Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 Jan- Jan-7 Jan- Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 SOURCE: CERI, CAODC, Baker Hughes. SOURCE: CERI, CAODC. WCSB Active Rigs by Province Weekly Average Western Canada Active Rigs Weekly Average 7 SK AB BC 7 5-Year Avg. 15 1 5 5 3 3 1 Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 1-1 5 9 13 17 1 5 9 33 37 1 5 9 Week Number SOURCE: CERI, CAODC. SOURCE: CERI, CAODC.

Page 1 US Total Oil- and Gas-directed Active Rigs US Total Active Rigs, Oil-directed Gas-directed Gas-directed %,, 1, 1, 1, 1, 1, Jan-Jan-7Jan-Jan-9Jan-1Jan-11Jan-1Jan-13Jan-1Jan-15Jan-1 1% 9% % 7% % 5% % 3% % 1% %,5 Total Oil-directed GoM Gas-directed Onshore Gas-directed, 1,5 1, 5 Jan- Jan-7 Jan- Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 SOURCE: CERI, Baker Hughes. SOURCE: CERI, Baker Hughes. US Gulf of Mexico Active Rigs 1 Oil-directed Gas-directed 1 Jan- Jan-7 Jan- Jan-9 Jan-1 Jan-11 Jan-1 Jan-13 Jan-1 Jan-15 Jan-1 SOURCE: CERI, Baker Hughes. CERI Commodity Report - Natural Gas

Page 17 1, 9 7 5 3 1 5,,5, 3,5 3,,5, 1,5 1, 5 Canadian Working Gas Storage (Bcf, Month-end) 5-Year Avg. 15 1 US Lower- Working Gas Storage (Bcf, Month-end) 5-Year Avg. 15 1 Canadian Storage by Region (Bcf, Month-end) 9 West East 7 5 3 1 May-15 Jul-15 Sep-15 Nov-15 Jan-1 Mar-1 May-1 US Storage by Region (Bcf, Month-end),5 East Midwest Mountain Pacific South Central, 3,5 3,,5, 1,5 1, 5 May-15 Jul-15 Sep-15 Nov-15 Jan-1 Mar-1 May-1 SOURCE: CERI, Platt s Gas Daily. SOURCE: CERI, Platt s Gas Daily. SOURCE: CERI, Platt s Gas Daily. SOURCE: CERI, Platt s Gas Daily.

Page 1 WC_IJ_WD Western Canadian Storage Injections/Withdrawals (Bcf, Month-end) 1 5-Year Avg. 15 1 - - -1-1 Canadian Storage Injections/Withdrawals (Bcf, Month-end) 15 5-Year Avg. 15 1 1 5-5 -1-15 - Eastern Canadian Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 - - - - -1 SOURCE: CERI, Platt s Gas Daily. SOURCE: CERI, Platt s Gas Daily. SOURCE: CERI, Platt s Gas Daily. CERI Commodity Report - Natural Gas

Page 19 15 1 5-5 -1-15 - -5 3 1-1 - -3 - US East Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 US Mountain Region Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 US Midwest Region Storage Injections/Withdrawals 3 5-Year Avg. 15 1 1-1 - -3 US Pacific Region Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 - - - - SOURCE: CERI, EIA. SOURCE: CERI, EIA. SOURCE: CERI, EIA. SOURCE: CERI, EIA.

Page 3 1-1 - -3 US South Central Region Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 - - - - -1 US Storage Injections/Withdrawals (Bcf, Month-end) 5-Year Avg. 15 1 SOURCE: CERI, EIA. SOURCE: CERI, EIA. CERI Commodity Report - Natural Gas