I often get asked, “what do you teach?” I thought that a good way to answer this question might be to let you have a look at the midterm questions I asked my Energy 101 class yesterday here at the Alberta School of Business. This is a new course, created last year, which aims to enhance student energy literacy, prepares students for co-op, summer, or permanent jobs, and complements our BCom degree programs in Natural Resources, Energy and Environment (if you follow me on Twitter, you’ll often see the #nree hashtag).
One of the key messages I send to my students is to know what you know and what you don’t. As such, the grading scheme I used had one point for each correct answer,with one point deducted for each incorrect answer (you need not attempt every question) and graded the section out of 20, despite there being 25 questions. Answer 20 questions correctly and you’d get full marks. Answer 25 correctly and you’d get 5 bonus points. Answer 20 correctly and 5 incorrectly and you’d get 15 points out of the possible 20, and so on. After you’ve tried the questions, you can check your score on the solution key here: BUEC_488_midterm_2011_mc_solns.
Good luck! Let me know how you do.
1. Which of the following companies operate both oilsands mines and in situ extraction facilities:
a. Devon Energy
b. Syncrude
c. Laricina Energy
d. Suncor Energy
e. All of the above
2. In the year 2010, approximately what proportion of Alberta’s fossil fuel energy production was made up of mined and in situ bitumen, conventional light, and conventional heavy oil.
a. 10%
b. 25%
c. 55%
d. 90%
3. Which statement best describes the ERCB’s most recent forecasts in terms of future oilsands production between now and 2020
a. Increase to 3.75 million barrels per day, with 90% of new growth coming from in situ
b. Increase to 4.85 million barrels per day, with growth in both in situ and mining
c. Increase to 3.75 million barrels per day with 90% of the growth due to new mining operations
d. Increase to 3.75 million barrels per day, with a little over half of the growth coming from in situ
e. Increase to 4.85 million barrels per day, with a little over half of the growth coming from in situ
4. The ERCB expects the price for West Texas Intermediate crude oil at Cushing to be
a. Between $100/bbl and $125/bbl in 2020
b. Greater than $125/bbl by 2020
c. Less than $80/bbl by 2020
d. They don’t provide a forecast because it is too uncertain
e. None of the above
5. Alberta’s oil reserves (including oilsands) are evaluated by the ERCB at approximately
a. 270 billion barrels
b. 800 million barrels
c. 170 billion barrels
d. 1.5 trillion barrels
6. Which of the following countries is/are not among the world’s top 5 oil consumers, according to current EIA data?
a. Iran
b. China
c. Russia
d. a and b
e. None of the above
7. Which of the following countries is/are in both the world’s top-5 oil producers and consumers?
a. China
b. Russia
c. Brazil
d. A and B
e. All of the above
8. Alberta’s oilsands can be found in the area surrounding:
a. Peace River
b. Fort McMurray
c. Cold Lake
d. All of the above
e. None of the above
9. The TransMountain pipeline expansion project is proposed by which pipeline company?
a. KinderMorgan
b. Interpipeline
c. Enbridge
d. TransCanada
10. Canadian firms filing reserves reports under NI-51-101 must report:
a. Proved reserves based on the average of the previous 12 months’ prices
b. Proved and proved + probable reserves based on the average of the previous 12 months’ prices
c. Proved reserves based on forecast changes in prices and costs
d. Proved and proved + probable reserves based on forecast changes in prices and costs
11. US-listed firms filing reserves data under SEC guidelines must report:
a. Proved reserves based on the average of the previous 12 months’ prices
b. Proved and proved + probable reserves based on the average of the previous 12 months’ prices
c. Proved reserves based on forecast changes in prices and costs
d. Proved and proved + probable reserves based on forecast changes in prices and costs
12. A heavy, sour oil product is one which is:
a. High in sulphur, with high viscosity
b. Low in sulphur with high water content
c. High in sulphur, with low viscosity
d. Low in sulphur, with high viscosity
e. None of the above
Hint: Viscosity of water is 1 cps, viscosity of molasses is approximately 5,000-10,000cps, and viscosity of peanut butter is approximately 150,000cps
13. 2010 average daily oil production for Syncrude was approximately:
a. 290 thousand barrels per day
b. 160 thousand barrels per day
c. 410 thousand barrels per day
d. 87 thousand barrels per day
14. The EIA projects that global coal use will
a. Peak in 2025 and then decline
b. Remain relatively constant at 2010 levels through 2035
c. Decrease slowly as renewable generation increases between now and 2035
d. Increase steadily through at least 2035
e. None of the above
15. In Alberta, drilling permits are issued by:
a. Alberta Energy
b. Alberta Environment
c. Sustainable Resources Development
d. The Energy Resources Conservation Board
e. None of the above
16. The share of unconventional heavy oil (including oilsands) is 5% of world liquid fuels supplies today. By 2035, the EIA predicts that share will increase to:
a. 8%
b. 12%
c. 20%
d. 25%
e. 30%
17. Which of the following companies split from EnCana in 2009?
a. Canadian Natural
b. Cenovus Energy
c. Pan Canadian Petroleum
d. Penn West Petroleum
18. Which of the following would be described as shale gas plays?
a. Marcellus
b. Bakken
c. Eagle Ford
d. Barnett
e. All of the above
19. World oil production and consumption in 2010 was approximately
a. 62 million barrels per day
b. 45 million barrels per day
c. 152 million barrels per day
d. 87 million barrels per day
e. 32 billion barrels per day
20. World total proved oil reserves in 2009 (the last point of data on the slide) were approximately:
a. 1300 billion barrels
b. 350 billion barrels
c. 800 billion barrels
d. 2600 billion barrels
21. Enhanced oil recovery refers to:
a. Producing a lighter, or partially upgraded product
b. Producing a product with less sand
c. Injecting water, steam, heat, etc. to increase oil production
d. Injecting CO2 to increase oil production
e. C or D
22. Prospective resources include petroleum for which there is estimated to be:
a. A chance of discovery
b. A chance of development
c. A and B
d. None of the above
23. Contingent resources may include petroleum for which there is estimated to be:
a. A chance of discovery
b. A chance that economic conditions will develop which allow its profitable extraction
c. A chance that legal impediments to development will be removed
d. B and C
e. All of the above
24. A checklist for inclusion in reserves filings might include:
a. Economic viability
b. Market for sales volumes
c. Infrastructure in place or available
d. Reasonable expectation that all internal and external approvals will be in place
e. All of the above
25. Proved reserves are reserves that can be estimated with a high degree of certainty to be recoverable. What probabilities are used to define this high degree of certainty for the purposes of reserve filings?
a. 50%
b. 70%
c. 90%
d. 99%
e. 100%
What fun! Am I sick to enjoy writing tests?
I got 2, 3, 5, 6, 7, 10 and 22 wrong, for an overall score of 11. Biggest surprise was #2: I had thought coal was much more significant in Alberta than it is.
I thought I did pretty well, considering I didn’t study. (18 out of 19 attempted or 85% according to your grading scheme).
I have to admit in some cases I looked carefully at the structure of the answers (and surrounding questions) to confirm my answers. For instance, on question 3, there is one answer that can be eliminated because it does not contradict a second answer (i.e. if the one is true, both are).
Anyway, the most surprising aspect for me was what was not on the test – no mention of GHGs whatsoever. Perhaps that comes in the second half of the course?
I do hope your students will come to understand that currently projected development of the oil sands is incompatible with Canada achieving its share of reasonable science-based carbon reductions over the next few decades. Even the modest 2020 17% target seems out of reach at this point, since GHG growth in the oil sands would need to be offset by about a 25% carbon reduction in the rest of the Canadian economy. And forget about 80% reduction by 2050.
That is a good grade. Well done.
You are correct that we have done little formally with respect to GHGs to date, although I think they have been mentioned in just about every class. They will certainly come to understand the scale of the GHG policy challenge in Canada, although I can assure you they won’t hear the words “science-based” targets for Canada – science has nothing to say about what Canada’s emissions should be. Science can tell us about the implications of increasing global GHGs (and I am more than happy to accept the broad conclusions of groups such as the US NAS and, in general, the IPCC), but to suggest that science can inform global burden sharing does science a dis-service. Science knows that the atmosphere doesn’t react differently to carbon based on location or historic emissions. Further, Pembina and the David Suzuki Foundation were clear that meeting our “modest” 17% below 05 target would take the equivalent of a national carbon price set at $100/ton by 2020. Unless you can provide a list of countries with more aggressive targets in terms of the actions which would be required to meet them, I suggest you re-define your view on how Canada’s target fits on the scale of modest to aggressive.
Thanks for reading (and for trying the test).
Andrew
I failed badly (negative something).
I’m curious to know what influence the amount of oil produced in Alberta has on the price. Is this something that can even be determined?
I never knew that China is one of the leading producers although I know that it is one of the leading consumers.
Very refreshing!!