Suncor's path to growth -- oil sands projects and technology

The evolution of Suncor Energy Inc., is told, combined with an overview of the development of oil sands projects and technology in Canada. Suncor is a growing integrated energy company that has been active in Canada for over 80 years. In 2002 the company has more than 3.300 employees and is expected to produce over 230,000 barrels of oil equivalent per day. In western Canada, Suncor explores for, develops and produces natural gas, mines and upgrades oil sand into high quality refinery feedstock and diesel fuel. In Ontario, Suncor refines crude oil, and markets a whole range of wholesale and retail petroleum and petrochemical products. Suncor also intends to pursue commercially viable renewable energy sources through an investment of CDN$100 million by 2005. As an indication of Suncor's vision to be a sustainable energy company, the paper describes the recently completed Millennium Project that took four years and CDN$3.4 billion to complete that raised the company's production capacity to about 230,000 barrels per day. It also added a second complete processing operation, including some unique new technologies developed by Suncor in conjunctions with the engineering companies involved in the design and construction of the project. This dual train approach not only increases production capacity, it also provides the flexibility and reliability to schedule periodic plant maintenance on one train while continuing to generate production and cash flow from the other. In addition to Millennium, there is also the Firebag in situ oil project, Suncor's first commercial project to use steam assisted gravity drainage technology. Construction on this project began in 2001, and is the next phase in marking Suncor's journey towards a production goal of more than half a million barrels per day. In late 2001, plans have been also disclosed for project Voyageur, an expansion that is envisioned to increase the oil sands production capacity to 550,000 barrels of oil per day over the next 10 years. Voyageur will use both Suncor's oil sands mining and in situ technologies, building on the benefits of both types of operations to increase production. Phase One of Voyageur will also expand upgrader capacity though the addition of a delayed coker, hydrotreating facilities, and equipment for sulphur recovery. The integral part of Suncor's growth is the commitment to reduce environmental impacts associated with ongoing development and use of hydrocarbon energy. To that end, Suncor works closely with aboriginal and environmental groups and all levels of government, to address concerns related to its oil sands operations.