Industry Capital Spending Cdn $billions

Note: Excludes spending on mergers & acquisitions

Western Canada 2012 2013E 2014F $37 $39 $39

East Coast Offshore 2012 2013E 2014F $2.4 $3.0 $3.5

Oil & Gas Investment Spending: 2012: $67 billion 2013: $67 billion (estimate) 2014: $68 billion (forecast)

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Northern Canada 2012 2013E 2014F $0.1 $0.5 $0.7

Oil Sands 2012 2013E 2014F $27 $25 $25

Canadian Oil Sands (Bitumen and SCO) & Conventional Production

Access to Markets – Pipeline Expansions in Development

WCSB Takeaway vs Supply Forecast

Crude Oil Rail Exports Western Canada vs. North Dakota

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• Opportunities: • Relatively quick • Flexibility • Less diluent • Use in both

directions

• Challenges: • Recent safety • Higher costs • Limited loading and

tank car availability

Source: Peter’s & Co. Limited = Sept 2013

New Market Opportunities for W. Canadian Gas

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Area of Oil Sands Deposit

NGTL Westcoast PNG (Capacity approx: 110 MMcfd) Pacific Trail: Proposed (Kitimat LNG) Coastal GasLink: Proposed (LNG Canada) Prince Rupert Gas Trans: Proposed (Pacific Northwest LNG)

Westcoast Connector: Proposed (Prince Rupert LNG)

Growing Oil Sands Demand

Declining Traditional Market Demand

Potential LNG Export Demand

● Kitimat LNG (Chevron, Apache) 1.4 Bcf/d Permits received (including Export License); awaiting investment decision

● BC LNG Export Co-operative 0.125 Bcf/d Permits received (including Export License)

● LNG Canada (Shell, KOGAS, Mitsubishi, PetroChina) 2.0 – 3.2 Bcf/d Feasibility stage; applied for some permits; Export License granted

● Pacific Northwest LNG (Progress/Petronas, Japex) 2.0 Bcf/d (Merger approval granted) Completed feasibility, Export License granted, progressing to pre-FEED

● Aurora LNG (Nexen/Inpex) Conducting feasibility

● Prince Rupert LNG (BG Group) 3.0 Bcf/d Advancing feasibility, Export License granted, applying for environmental permits

● Triton LNG (AltaGas/Idemitsu Kosan) 0.3 Bcf/d Conducting feasibility; applied for export license

● ExxonMobil/Imperial Oil (WCC LNG Ltd) 4.0 Bcf/d Granted Export license

● Woodfibre LNG 0.3 Bcfd Granted Export license

● Woodside (Grassy Point LNG) 1.8 Bcfd Conducting Feasibility

Canadian West Coast LNG export projects in development

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Total potential new demand ~ 15.0 Bcf/d

Kitimat

Prince Rupert

Vancouver

Note: Other announced projects include Kitsault LNG, Stewart LNG, Quicksilver

Natural Gas Pipelines – Connecting LNG Projects

Prince Rupert

Kitimat

Fort Nelson

Summit Lake

Coastal Gas Link • LNG Canada

Pacific Trail • Kitimat LNG

Existing Spectra Energy

Existing Pacific Northern • BC LNG COOP • Altagas/Idemitsu

Spectra/BG Group • BG/others

Prince Rupert Gas Transmission Pipeline • Pacific Northwest LNG