1. Energy Boom: Why Canada will be a Global Leader
Derek Gates, CFA Founder
SWM Oil Sands Sector Index TM SWM Canadian Energy Income Index TM

2. Cautionary Statement & Disclaimer
This presentation includes forward looking statements. Actual results may vary significantly due to numerous factors both known and unknown to the author. The information contained in this presentation is not intended to constitute investment advice and investors contemplating investing in the sector should seek professional advice before doing so and must not rely on the assertions, facts, opinions and projections provided in this presentation. Past performance does not guarantee future performance. Market information used on this website is obtained from non-proprietary market sources. While we believe this information to be accurate, Sustainable Wealth Management, Ltd. and its affiliates cannot attest to the validity of information culled from other sources The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer. All rights reserved. The contents of the SWM website are protected by applicable copyright laws. No permission is granted to copy, distribute, modify, post or frame any text, graphics, video, audio, software code or user interface design or logos. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, reproduction, or republication for any purpose is strictly prohibited. The Sustainable Wealth Management logos and “Sustainable Wealth Management, Ltd” are protected under various Trademark Registrations in International Class 36 and are the sole property of Sustainable Wealth Management, Ltd.

3. Executive Summary
Global Demand for all sources of energy are expected to increase by over 50% by 2030 from current levels (IEA, World Energy Report 2008)
Canada is in a unique position to benefit from this trend with world class reserves in many of the key energy commodities such as crude oil, uranium, natural gas and coal
You will learn how profitable investing in the energy sector will be over the next few decades and how you can profit from this mega trend by investing in the key growth sectors.

4. Global Demand for Energy
Population growth and rapid industrialization of China, India and the Middle East is driving energy demand up
Despite conservation and increased energy efficiency, demand will grow by 1.6% per year or by 45% from current levels by 2030
Fossil fuels are still expected to represent over 83% of our energy needs in 2030

5. World Energy Use by Fuel Type, 1980-2030
Future Share
Of World
Total
Current Share
Of World
Total
History
Projections
Oil
39.7%
Oil
37.3%
Coal
25.4%
23.3%
Natural Gas
Natural Gas
19.9%
Coal
22.4%
Nuclear
8.1%
Nuclear
8.2%
Renewable
Renewable
6.8%
3.7%
Hydro
2.6%
Hydro
2.5%
Source: EIA, IEA – WEO 2008

6. Failing to Plan and Invest
Coal will become the dominant energy source in the world
After the crude oil and natural gas production will peak, coal and oil sands will have to substitute at the expense of the environment
Nuclear, renewable and hydroelectric power will be developed too slowly to avert economic and environmental disaster

7. World Energy Use by Fuel Type, 1980-2030 Failure to Plan Scenario
Future Share
Of World
Total
Current Share
Of World
Total
History
Projections
Coal
37.9%
Oil
39.7%
Oil
24.9%
Natural Gas
23.3%
Natural Gas
19.9%
Coal
22.4%
Nuclear
8.1%
Nuclear
8.2%
Renewable
6.8%
Renewable
3.7%
Hydro
2.5%
Hydro
2.6%
Source: SWM Ltd. Projections ©

8. Sustainable Energy Future
Renewable energy such as wind, solar and biomass must be developed faster
Crude oil and natural gas production will peak soon, coal and oil sands will have to substitute while renewable energy is developed
Nuclear power is an important addition to the energy mix and should be used in combination with energy extraction

9. Sustainable World Energy Use by Fuel Type, 1980-2030 Sustainable Development Plan
Future Share
Of World
Total
Current Share
Of World
Total
History
Projections
Oil
24.9%
Oil
39.7%
Coal
24.2%
Natural Gas
23.3%
Renewable
20.4%
Natural Gas
19.9%
Coal
22.4%
Nuclear
8.1%
Nuclear
8.2%
Renewable
3.7%
Hydro
2.5%
Hydro
2.6%
Source: SWM Ltd. Projections ©

10. Global Crude Oil Production is at Peak
Global supply for crude oil has been flat since 2004
Producing oil wells are depleting by at 5.1% per year globally (IEA – World Energy Outlook, 2008)
Exploration and development costs for crude oil continue to climb as new sources of easy to find and extract oil becomes more scarce
The quality of crude oil being extracted is declining, refineries need to focus on bitumen and heavy oil
Source: Sustainable Wealth Management Ltd., IEA

11. Source: SWM Ltd. Projections © , IEA WEO 2008

12. Major Producers are at a Plateau
Russia
FSU
Source: SWM Ltd. Projections © , IEA WEO 2008

13. Our Friends are Tapped Out
Source: SWM Ltd. Projections © , IEA WEO 2008

14. OPEC is Not Increasing Production
Source: SWM Ltd. Projections © , IEA WEO 2008

15. Source: Sustainable Wealth Management Ltd., Bloomberg

16. Existing Production is Flat
Demand Grows,
Existing Production is Flat
Source: IEA WEO 2008, EIA Oil Market Report, SWM Ltd estimates

17. New Global Oil Requirements 2009 - 2018
Source: Sustainable Wealth Management Ltd. projections

18. Lack of Investment Opportunities
Over $26 Trillion US$ of energy investment is needed between now and Half to be invested in power generation, half in energy production, mostly in fossil fuels
At least 75% of proven global oil reserves are controlled by National Oil Companies (NOCs)
Canada represents at least 55% of global reserves that can be invested in privately
New discoveries are very scarce, most known oil and gas reserves are already being developed

20. Source: SWM Ltd. Projections © , IEA WEO 2008

21. Source: SWM Ltd. Projections © , IEA WEO 2008

22. Canada: The Future Oil King
Canada will soon be recognized as having the largest oil reserves in the world and will become the largest oil exporter by 2030
Geopolitically stable and the largest crude exporter to the US (16% of all US imports)
Oil companies are all independently owned
Established industry which is open to foreign investment

23. Oil Export Leaders 2007 to 2015
Source: SWM Ltd. Projections © , IEA WEO 2008

24. Oil Export Leaders 2030
Source: SWM Ltd. Projections © , IEA WEO 2008

25. Production to continue for 100+ years
Reserves
Production
Rate (boe/d)
Years of Production at Estimated Production Rates
Current Reserves under development
83.9 Billion boe
1,150,000 boe/day
200
Total Proven Reserves
174 Billion boe
3,600,000 boe/day
(IEA Estimate for 2018)
132
Total Proven & Probable Reserves
305 Billion boe
5,900,000 boe/day
(IEA Estimate for 2030)
142
Source: Sustainable Wealth Management Ltd. Estimates ©, IEA

26. Best Buying Opportunity in 4 Years!
Production is up over 50% since 2004 and
average oil prices have increased significantly.
Source: Bloomberg, Sustainable Wealth Management, Ltd.

27. Canada’s Other Energy Resources – Nuclear
Canada is the world’s largest producer of uranium, providing over 25% of world supply
Canada is second only to Australia in terms of uranium reserves
Canada has its own nuclear power plant design and producers 16% of its electricity needs from uranium
Source: World Nuclear Association

28. Canada’s Other Energy Resources – Natural Gas
Canada is the world’s third largest producer of natural gas and the largest supplier of natural gas to the United States
Conventional reserves are 58 Tcf, and Natural Gas from Coal could add 200 Tcf to 550 Tcf
Tight gas and shale gas will add another 500+ Tcf to Canada’s natural gas reserves
Source: Canadian Society for Unconventional Gas, CAPP

29. Canada’s Other Energy Resources – Coal
Canada has about 10 Billion Tonnes of Coal of which we produce about 100 Million Tonnes per year
Canada is one of the world’s largest producers of coking coal for steel production
We have a 100 year plus supply of coal at our present consumption rate
Source: Coal Association of Canada

30. Canada’s Other Energy Resources – Hydroelectric
Canada is the largest producer of hydroelectric power in the world, representing over 13% of world production
The is another 182,832 MW of new potential power projects, 34,371 MW is practical in today’s economic and environmental situation
Canada is the lowest cost producer of hydroelectric power in the world
Source: International Journal on Hydropower and Dams, Government of Canada

31. Canada’s Other Energy Resources – Wind
Current installed capacity provides electricity to over 563,000 homes, about 3% of world capacity
Canada’s has the world’s longest coastline and some of the world’s largest plain land areas, giving it one of the largest potential wind resource
We have a 100 year plus supply of coal at our present consumption rate
Source: Canadian Wind Energy Association

32. Canada’s Other Energy Resources – Biomass
Current installed capacity is 1,500 MW mostly using wood waste in the forestry industry
Canada has 10% of the world’s forests and a large agricultural sector to provide feedstock
1,500,000 Canadian homes rely on wood for home heating
Ethanol production from wheat, corn and other sources could triple in the near future from current production of 175 million L per year
Source: Centre for Energy, Forestry Canada

33. Contact Information
Derek Gates, CFA, CIM, CFP, FCSI
President & CIO
Sustainable Wealth Management Ltd.
Suite 224, 222 – 16th Ave NE Calgary Alberta T2E 1J8
Phone
Fax