News Release 07 July 1999

FOR IMMEDIATE RELEASE

EUB RELEASES ANNUAL STATISTICAL REVIEW OF ALBERTA'S ENERGY SECTOR

Calgary, Alberta (7 July 1999) The Alberta Energy and Utilities Board (EUB) today released Alberta's Energy Resources--1998 in Review. This publication provides a statistical review of the activities of the province's energy sector during 1998. It covers conventional crude oil, natural gas, oil sands, coal, sulphur, pipelines and electrical generation, including highlights of data concerning year-end production, reserves, drilling activity, and sales and markets for Alberta's energy resources.

Highlights

In 1998, Alberta's energy resources sectors fell back from the record setting pace of 1996 and 1997. Total hydrocarbon sales decreased 17.9 per cent to $22 billion, well down from the strong 1997 showing of $26.79 billion, the result of lower oil and natural gas prices. Prices similarly affected oil sands and conventional oil development drilling, with the total number of wells drilled in Alberta in 1998 standing at 7858. This is a 5354 well decrease over the 13 212 wells drilled in 1997, which set Alberta's all-time drilling record.

Oil sands drilling decreased by 71.8 per cent in 1998 to 762 wells, which is 1938 wells fewer than in 1997. Previously, oil sands drilling had set consecutive records three years in a row for 1995, 1996 and 1997. Once again, bitumen and synthetic crude oil production reached record levels in 1998, with production up 12.1 per cent to 34.3 million cubic metres, compared to 30.6 million cubic metres in 1997, continuing a steady upwards trend in oil sands expansion..

Production of marketable natural gas rose 3.1 per cent in 1998 to 136.8 billion cubic metres, breaking the 1997 record of 132.7 billion cubic metres. While rising in overall volumes, gas production increases have slowed in percentage terms. Production growth was 8.2 per cent in 1995; 2.9 per cent in 1996 and 1.3 per cent in 1997. At the end of 1998, Alberta's remaining established reserves of natural gas stood at 1239.9 billion cubic metres. Alberta sulphur producers found markets for 6.03 million tonnes of the 7.81 million tonnes produced in 1998. Offshore and U.S. markets account for 90 per cent of sulphur sales.

Electric generating capacity declined slightly to 7.6 thousand megawatts, from 7.7 thousand megawatts in 1997, however, Alberta's electric utilities generated 50.63 billion kilowatt hours of electricity in 1998, an increase of 3.5 per cent from 1997.

Overall in 1998, Alberta accounted for 69 per cent of all the energy produced in Canada. The province produces 65 per cent of the nation's conventional oil and pentanes, 80 per cent of its natural gas and gas liquids, 53 per cent of its coal and 100 per cent of its bitumen and synthetic crude.

Copies of Alberta's Energy Resources--1998 in Review are available through: Information Services, Main Floor, 640 - 5 Avenue S.W. Calgary, Alberta T2P 3G4, and on the EUB's website at www.ercb.ca

-30-

This news release is also available on the EUB Website at http://www.ercb.ca

For further information please contact:

MR99-11