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									            Oil Sands in Canada - Economics Outweigh Environmental
                                    Concerns
       Reference Code: GDGE0677VPT                                                                                                           Publication Date: January 2012


       1         Table of Contents
       1 Table of Contents.................................................................1
        1.1 List of Tables .................................................................1
        1.2 List of Figures ................................................................1
       2 Summary .............................................................................2
       3 Oil Sands in Canada - Economics Outweigh Environmental
         Concerns .............................................................................2
        3.1 Significance of Continued Development of Canadian Oil
             Sands for the US ...........................................................2
        3.2 Huge Water Usage is the Key Environmental Concern
             of Oil Sands Development .............................................3
        3.3 Continued Oil Sands Development in Canada will Help
             the US to Increase Oil Imports from the Western
             Hemisphere ...................................................................4
        3.4 Conclusion.....................................................................5
       4 Appendix ..............................................................................5
        4.1 Methodology ..................................................................5
        4.2 Contact Us.....................................................................6
        4.3 Disclaimer......................................................................6

       1.1       List of Tables
       Table 1: Keystone and Keystone XL Pipeline Details, North
                 America, 2011 ..........................................................2



       1.2       List of Figures
       Figure 1: Keystone and Keystone XL Route, North America,
                 2011 .........................................................................3
       Figure 2: Crude Oil Industry, the US, Oil Production and
                 Consumption, (MMbpd), 2000–2020 ........................4
       Figure 3: Oil Sands Industry, Canada, Projected Production
                 Capacity (MMbpd), 2011–2015 ................................4




                                                                                                                                         GDGE0677VPT / Published JAN 2012 /Page 1
                                                                                                                                                                    Market Analysis Alert
Oil Sands in Canada - Economics Outweigh Environmental Concerns
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       2       Summary                                                         3.1.1      Proposed Keystone XL Pipeline Project will
                                                                                          be Instrumental for Rapid Development of Oil
       Canada has the third largest oil reserves in the world of which                    Sands
       about 97.1% are in the form of oil sands. The country has
       witnessed an increase in oil production capacity from its oil           The proposed Keystone XL pipeline will play a key role in the
       sands resources over the past few years. The development of             rapid development of oil sands in Canada. The construction of
       Canada’s oil sands resources provides various economic                  the proposed pipeline will help increase the supply of oil from
       advantages for the country as well as its key export market the         Canada to the US. Upon completion, it is expected to provide
       US. However, the oil sands development faces challenges due             5% of current US petroleum consumption needs and will
       to concerns raised by environmentalist groups about heavy               represent 9% of US petroleum imports.
       water usage and Greenhouse Gas (GHG) emissions. Concerns                The Keystone XL pipeline is a project proposed by
       have also been raised over the proposed route for a pipeline            TransCanada Corp., a Canadian pipeline company, in 2008.
       project, Keystone XL, which will transport oil from the oil sands       The 1,661-mile-long crude oil pipeline is expected to run from
       region to the US Gulf Coast. The project is currently on hold to        Alberta through Montana, South Dakota, Nebraska, Kansas,
       check for possible alternate routes for the pipeline. Considering       Oklahoma and Texas to the US Gulf Coast. It is an extension of
       the potential economic benefits for the US and Canada in terms          the Keystone pipeline that runs from Alberta to Cushing in the
       of crude oil trade, tax revenues, employment generation, and its        US.
       effect on allied industrial sectors, it seems that the economics of
       oil sands development outweigh the environmental concerns               The table below shows the active and planned Keystone and
       raised by various groups.                                               Keystone XL pipeline details:

       3       Oil Sands in Canada - Economics                                   Table 1: Keystone and Keystone XL Pipeline Details,
                                                                                          North America, 2011
               Outweigh Environmental Concerns
                                                                                                                 Start Point,   End Point,
       The economic advantages of oil production from Canada’s oil               Pipeline
                                                                                              Pipelines          Start Point    End Point       Length
                                                                                 Name
       sands supersede the environmental implications. The continued                                             Country        Country
       development of oil sands will allow the US to source more oil             Keystone Pipeline System (Existing)                           3,461.69
       imports from a friendly neighbor, reduce its dependence for oil                                                          Plains
       on volatile trade partners in the Middle East, and help it                             Hardisty-
                                                                                                                 Enbridge       Patoka
                                                                                              Patoka
       increase tax revenues and jobs in the long run.                                                           Hardisty,      Terminal,      2,982.11
                                                                                              Pipeline
                                                                                                                 Canada         United
                                                                                              (Phase-I)
                                                                                                                                States
       3.1     Significance of Continued Development of
                                                                                              Steel City-                       Enbridge
               Canadian Oil Sands for the US         
								
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