1. Canadas Contribution to the Security of Continental Natural Gas Supply Canada Institute - Woodrow Wilson Institute Greg Stringham March 21, 2005

2. Canadian Natural Gas – Whats New ? Natural Gas Supply – recent trends New Gas Resources – size and timing Deep Basin, Natural Gas from Coal, Mackenzie Delta Demand – oil sands; new alternatives to gas Cross border cooperation – avoiding linkages Physical Security – cross border confirmation 1

3. Albertas Conventional Natural Gas Ultimate Potential and Marketable Reserves Ultimate potential estimates Joint EUB/NEB report on Conventional Natural Gas Ultimate Potential released March 9, 2005 Up 11.5% from last report 2

4. Canadian Natural Gas Production Field Receipts - TransCanada, Westcoast and Alliance 3

5. 200020012002 <30 mmcf/d 30-50 mmcf/d >50 mmcf/d 2003 Top Natural Gas Wells Drilled 2000 - 2003 Talisman Monkman: Dec 2004: 66 mmcf/d 1 tcf gas in place Shell/Mancal Tay River: Dec 2004: 30 mmcf/d test 500-800 bcf gas in place 4

6. Coalbed Methane Wells (NGC) Drilled in Western Canada by year 2003CanadaU.S. Resource (tcf)167169 * Production (bcf/yr)181,600 Share of production<1%10% Cumulative Wells to 2003 800>30,000 * Potential Gas Committee Source: FirstEnergy & CAPP estimate 5

7. Oil Sands Production Technologies Alternatives to Natural Gas Toe-to-Heel Air Injection – Whitesands ProjectOrCrude Process - Nexen/OPTI Longlake Multiphase Superfine Atomized Residue - DeerCreek Suncor 3 rd Upgrader - Coke Gasification OXYGEN WASTE WATER PETROLEUM COKE SYNTHETIC GAS (CO, H 2, CO 2 ) GASIFIER CO 2 CAPTURE & SEQUESTER HYDROGEN HYDROTREATORS BOILERS STEAM & ELECTRICITY FUEL 6

8. Physical Security – Cross-border Cooperation Industry Actions Strong emergency response Focus on crisis prevention, best practices and information sharing Government Engagement Federal Provincial Cross border cooperation and communication Emergency response Crisis prevention 7