Crude Oil Supply - Natural Gas Supply

Recent projections of natural gas supply indicate that total production from the WCSB is expected to
stay relatively flat, in the range of 16.5 to 17.0 Bcf/d until the 2010 to 2011 timeframe

Alternative sources of gas supply are postulated, such as increased CBM and imports of liquefied natural gas (LNG) and, in the 2009 to 2013 timeframe, supplies from the North via the Mackenzie Valley and Alaska pipelines. If supply from these sources develops more slowly than projected, it is possible that tight gas market conditions might prevail over the next five to six year period or longer, until alternative supply can be delivered in sufficient quantity.

In order to reduce their exposure to gas prices, oil sands operators are actively seeking to reduce their dependence on natural gas, by increasing efficiency through improved energy management, and by researching and developing alternate sources of energy.