Du er her: Forside > Utenlandske aksjer - Valuta - Råvarer > Suncor Energy - Langsiktig case innen olje-prod
Suncor Energy - Langsiktig case innen olje-prod
21:51 18.12.2010

The company said the unit had been shut but spokesman Brad Bellows could not specify how much synthetic crude the unit was producing before the fire.

Differentials for syncrude firmed after the fire. Traders said syncrude rose 15 cents a barrel to trade for 75 cents above West Texas Intermediate late Tuesday. Some of the Canadian crude typically flows into the U.S. Midwest region, where it can be refined by companies including BP (BP.L) and Marathon (MRO.N).

The company's 135,000 bpd refinery in Edmonton, Alberta, also runs oil sands-based feedstock to make gasoline and diesel.

Experts questioning Suncor's credibility

By Carrie Tait, Financial Post
Feb. 9, 2010

Calgary -- Suncor Energy Inc., Canada's largest energy company, has experts questioning its credibility and calling for a review of its operations after it said a fire -- its third in five months -- shut down one of the company's two upgraders Tuesday.

The blaze hit its original upgrader, which was built in 1967 and processes about 125,000 barrels of bitumen per day, and comes just as its newer upgrader is being put back to work after its December fire. The first of the three fires struck in October.

"There's a loss of credibility," Dennis da Silva, a resource-fund manager at Middlefield Capital Corp. in Toronto, said. "We can't have it happen again.

"There has to be a wholesale review," he said. "The frequency is too high, especially relative to other players."

Suncor must examine is execution, suppliers, safety procedures and other factors, experts said. Further, when the review is complete, Rick George, the company's chief executive, must provide reams of information to shareholders to regain trust.

"To re-instill that confidence you have to show . you've put some changes in place or you've instituted new measures," Mr. da Silva said.

To further compound Suncor's woes, the fire comes just one week after the company handed over disappointing fourth-quarter results. Investors, doubting Suncor's ability to get a grip on its merger with Petro-Canada, punished the company that day, pushing its shares down 5.7%, their largest drop in six months.

"There's a lot of things going on there: We've got fires; earnings have missed a bit," Darren Dansereau, a fund manager at Calgary's QV Investors, said. "The biggest thing I'd like to see is Rick George come out in a press conference and discuss what's happening. Is it a problem? Is it just a coincidence? We'd like some answers."

Suncor's newest upgrader, Unit 2, was hit by a fire in January 2007, and again in November 2008, as well as the December 2009 blaze.

The company's most serious fire came in January 2005, which halved the company's production during the eight months it took to complete repairs.

Mr. George, a respected executive, is always apologetic when his company flubs.

"Obviously we're very disappointed by [the December fire], and are not making excuses for that," he said last week during Suncor's fourth quarter conference call. The fire had a "big impact" on the quarter's earnings, he admitted.

While Mr. George's tone is appreciated, it does not erase concerns.

"Investors [will say]: How much more can you apologize?," Phil Skolnick, an analyst at Genuity Capital Markets, said. "They may question the integrity of some of their operations."

It cost about $60-million to get the damaged upgrader running after the December fire, but the company said it expects insurance to cover those costs.

Suncor expects to ship raw bitumen through Alberta's pipeline network while the upgrader is under repair, according to Brad Bellows, a spokesperson for the company. The full affect of the fire is unknown. "We're doing a damage assessment concurrently with the scheduling of the repair plan."

Endret 18.12.2010 21:51 av OldNick
21:52 18.12.2010

"In this case we're going to have to go through the cause assessment and the damage assessment," he said. "We're disappointed to have two incidents within a few months of each other."

Meanwhile, Suncor sold a package of natural gas assets to Progress Energy Resources Corp. for about $390-million Tuesday. The company wants to focus on oil sands, which means it has to pare down assets it inherited in as part of its merger with Petro-Canada. is paring down its natural gas assets in the wake of its merger with Petro-Canada.


Fra en ukjent......

The fire was localized to one plant a DRU. This is one of their Diluent recovery units.

Basically, pumps at grade, Exchanger banks for preheating in stages, A furnace then an atmospheric fractionation tower with a Light gas oil stripper.

The commodity in is Dil Bit (diluted bitumen). The commodity out is (Atb) atmospheric tower bitumen (dry bitumen) which is then sent for secondary upgrading. Light gas oil which is sent to hydro treaters for de-sulphurization and light end recovery which consists of Naphtha and water. Naphtha is returned to extraction for re-use and water goes to recovery......sewer.....

The fire started by a pump that failed (not uncommon). During the response by operations it went off, the call initiated a plant trip around 1 am and a full response by Suncor Emergency response.

This fire burned for several hours and did do a lot of damage to the unit. Syncrude response was called to assist Suncor in their efforts. That will indicate the scope of the response. This unit is out of commission.

The bad news... This units through-put is approx 245 thousand bbl/d of that about 50% is Bitumen the balance 40-43%~Naphtha and 7-10% water.

So is this going to impact production. WITHOUT A DOUBT.....

The good news is: This is not a show stopper...NO WAY....These plants are made to run like domino's and the plants are redundant. So even though one goes down they keep on chugging along with the remaining units. Reducing rates yes.. but, they can increase yields on other operational plants through various methods.

Bottom line .They can get this plant sorted out fairly quickly, and will get the plant up running on undamaged equipment and replace and repair on a priority basis.Electrical and inst is going to take longer.

Fires are actually quite common in all the plants.It happens, its only making the news because Suncor is in the News.

As for bad luck scenarios... you wouldn't want to know what Syncrude went though last year. Again while the fire was big everything is big up here..]

Suncor Energy Reports Planned Repair Schedule for Damaged Upgrader

Feb. 22, 2010 (Marketwire)

Calgary, Alberta - Suncor Energy Inc. announced today that it has completed its assessment and expected schedule to repair portions of an oil sands upgrader (U1) damaged by fire in early February. Repairs are currently underway and the company now expects the upgrader to return to production in early April.

In addition to the investigation into the cause of the fire, Chief Operating Officer Steve Williams has initiated an independent investigation supported by third party experts to review process safety and reliability. The findings from this investigation will be used to benchmark against industry best practices and assist in supporting Suncor's operational excellence initiatives.

During the repair period, the company's second upgrader (U2) is expected to continue normal operations. Combined production of synthetic crude oil and bitumen sold directly to markets during this period is targeted at an average of approximately 210,000 barrels per day (bpd) in February and 230,000 bpd in March (these volumes do not include Suncor's proportionate production share from the Syncrude joint venture).

Endret 18.12.2010 21:52 av OldNick
21:53 18.12.2010

Accordingly, Suncor's production outlook issued on February 4, 2010 will be impacted and will be updated with the release of the company's first quarter results on May 4.

Based on the damage assessment and repair schedule, and applicable waiting periods and deductibles, Suncor does not expect insurance to play a significant role in mitigating losses from this incident.

Suncor Energy Firebag In Situ Expansion Approved by Alberta Energy Resources Conservation Board

Mar. 18, 2010 (Marketwire)

(All financial figures are in Canadian dollars and are approximate.)

Calgary, Alberta - The Alberta Energy Resources Conservation Board has approved Suncor Energy's application to develop three additional stages of its Firebag in situ oil sands project. Firebag stages four, five and six each have a planned production capacity of approximately 62,500 barrels per calendar day. Cost estimates for stages four to six are expected to be detailed as each stage receives final approval from Suncor's Board of Directors. Preliminary work is currently underway on Firebag stage four, with production targeted in late 2012.

The planned facilities will employ steam assisted gravity drainage (SAGD) technology, a thermal recovery process that allows development of deeper oil sands deposits while limiting surface land disturbance. Approved facilities include well pads, water treatment facilities and co-generation plants that produce steam while also generating electricity.

"Regulatory approval for further expansion of Firebag is an important milestone for Suncor," said Steve Williams, chief operating officer. "This expansion keeps us on target for continued production growth, while at the same time reducing the overall environmental intensity of the barrels we produce."

Consultation with stakeholders has been ongoing since the application was filed and planned Firebag facilities have been designed to support environmental performance targets:

Energy efficiency - Natural gas fueled co-generation plants are expected to supply steam while producing electricity at a CO2 per megawatt/hour intensity lower than the current provincial average, contributing to the energy-efficiency of in-situ production facilities.

Air emissions - A $400 million sulphur recovery plant, completed in late 2009, has been pre-built with capacity to contribute to sulphur emission abatement for all six Firebag stages.

Water use - Once the facilities are at full capacity, water recycle rates are expected to exceed 90% with make-up volumes drawn primarily from process waste-water sourced from the company's existing facilities. As such, the regulatory applications did not include a request to increase the company's water withdrawal license. In-situ production does not require tailings ponds.
The first two stages of Firebag have been in operation since 2003 and 2005, respectively, with current combined production of approximately 60,000 bpd.

Stage three has a planned production capacity of approximately 62,500 barrels per calendar day, similar to stages four to six. The $3.6 billion project, which includes pre-built infrastructure for future stages, is under construction with first production targeted in mid-2011 and ramping up over the following 18 months.

Suncor Energy Agrees to Sell Non-Core Rosevear and Pine Creek Assets

Mar 24, 2010 - (Marketwire)

(All financial figures are approximate and in Canadian dollars unless otherwise noted.)

Calgary, Alberta - Suncor Energy has reached an agreement to sell certain natural gas properties for approximately $235 million, with an effective date of January 1, 2010. Current production on these lands is approximately 20.5 mmcf/d of gas and 540 barrels per day of liquids.

Endret 18.12.2010 21:53 av OldNick
21:54 18.12.2010

The sale includes properties known as Rosevear and Pine Creek, which are located in the Edson/Whitecourt area, about 200 km west of Edmonton.

The sale is expected to close in the middle of the second quarter and is subject to closing conditions and regulatory approvals typical of transactions of this nature.

As part of its strategic business alignment, Suncor plans to divest of a number of non-core assets. The proposed divestments include certain natural gas assets in Western Canada and the United States Rockies, all Trinidad and Tobago assets and certain non-core North Sea assets, including all assets in The Netherlands.

Suncor Energy Completes Maintenance at Oil Sands Upgrader

April 1, 2010 (Marketwire)

Calgary, Alberta - Suncor Energy Inc. reports today that it has completed maintenance work at its oil sands upgrading facilities and production has now returned to full rates.

The maintenance work involved repairs following a fire in February at one of two oil sands upgraders (U1) operated by Suncor near Fort McMurray, Alberta.

Oil sands production during the repair period in March averaged approximately 245,000 barrels per day (bpd). Year-to-date oil sands production at the end of March averaged approximately 202,000 bpd.

Production numbers include upgraded sweet and sour synthetic crude oil and diesel, as well as non-upgraded bitumen sold directly to the market, from all Suncor-operated facilities. Reported volumes do not include Suncor's proportionate production share from the Syncrude joint venture.

Suncor Energy Reports 2010 First Quarter Results

May 4, 2010 (Marketwire)

Calgary, Alberta - All financial figures are unaudited and in Canadian dollars unless noted otherwise. Certain financial measures referred to in this document are not prescribed by Canadian generally accepted accounting principles (GAAP). For a description of these measures, see Non-GAAP Financial Measures on pages 29 to 31 of our report to shareholders for the period ended March 31, 2010. This document makes reference to barrels of oil equivalent (boe). A boe conversion ratio of six thousand cubic feet of natural gas: one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Accordingly, boe measures may be misleading, particularly if used in isolation.

On August 1, 2009, Suncor Energy Inc. completed its merger with Petro-Canada. As such, the results for the three months ended March 31, 2010 reflect the results of the post-merger Suncor and the comparative figures for the three months ended March 31, 2009 reflect solely the results of legacy Suncor prior to the merger.

Suncor Energy Inc. today reported first quarter 2010 net earnings of $716 million ($0.46 per common share), compared to a net loss of $189 million ($0.20 per common share) for the first quarter of 2009. Operating earnings in the first quarter of 2010 were $287 million ($0.18 per common share), compared to $380 million ($0.41 per common share) in the first quarter of 2009.

The decreased operating earnings were primarily due to reduced production volumes at our oil sands operations, as the company recovered from the impact of two upgrader fires. This was partially offset by additional upstream production, as a result of the merger with Petro-Canada. The company also benefited from higher benchmark crude oil prices in the quarter, partially offset by the stronger Canadian dollar relative to the U.S. dollar.

Cash flow from operations was $1.124 billion ($0.72 per common share) in the first quarter of 2010, compared to $801 million ($0.86 per common share) in the first quarter of 2009.

Endret 18.12.2010 21:53 av OldNick
21:54 18.12.2010

The increase in cash flow from operations was primarily due to the increased volumes added as a result of the merger.

Suncor's total upstream production during the first quarter of 2010 averaged 564,600 barrels of oil equivalent (boe) per day, compared to 314,500 boe per day during the first quarter of 2009. The first quarter of 2010 reflects the results of additional upstream production volumes related to the merger with Petro-Canada, which were not included in the volumes for the first quarter of 2009.

Oil Sands production (excluding proportionate production share from the Syncrude joint venture) contributed an average 202,300 barrels per day (bpd) in the first quarter of 2010, compared to first quarter 2009 production of 278,000 bpd. Production was negatively impacted during the first quarter of 2010, due to unplanned maintenance activities following fires at upgraders in December 2009 and February 2010. Repairs were completed and oil sands upgrading facilities have since returned to full rates.

"While we were slower out of the gate than we'd hoped for this year due to upsets at our oil sands operations, the balance of the business performed well and oil sands production is firmly back on track," said Rick George, president and chief executive officer. "With both upgraders back to full production, we achieved an average oil sands production of approximately 333,000 barrels per day in April - our strongest month on record."

Cash operating costs for our oil sands operations (excluding Syncrude) increased to $54.85 per barrel in the first quarter of 2010, compared to $33.70 per barrel during the first quarter of 2009. The increase in cash operating costs per barrel was primarily a reflection of lower production levels.

Suncor's proportionate production share from the Syncrude joint venture contributed an average of 32,300 bpd of production during the first quarter of 2010.

Natural Gas production averaged 733 million cubic feet equivalent (mmcfe) per day in the first quarter of 2010, compared to 219 mmcfe per day during the first quarter of 2009, primarily due to the addition of Petro-Canada natural gas assets.

International and Offshore production contributed an average 207,800 boe per day during the first quarter of 2010. While production was negatively affected by minor unplanned outages at the company's North Sea operations, and by limitations on production quotas in Libya, all of the East Coast Canada assets exceeded management's production expectations during this quarter.

Total sales of refined petroleum products from Refining and Marketing averaged 82,200 cubic metres per day during the first quarter of 2010 compared to 31,400 cubic metres per day from the legacy Suncor business during the first quarter of 2009, reflecting the merger with Petro-Canada. Operating earnings increased over the same period last year due primarily to increased volumes as a result of the merger, despite a general decline in refining margins.

Growth and Operational Update

Construction was completed ahead of schedule and within budget on the $1.2 billion Ebla gas development in central Syria. Production from the Ebla gas project was introduced into the Syrian gas network in March 2010 and first commercial gas was delivered on April 19, 2010, following the successful completion of the performance testing period. The facility has a planned production capacity of 80 mmcf per day of natural gas in addition to related liquefied petroleum gas and condensate volumes.

Construction continued on the Firebag Stage 3 in-situ oil sands project. The planned $3.6 billion expansion is expected to achieve first production during the second quarter of 2011, with volumes ramping up over an estimated 18-month period toward a planned production capacity of approximately 62,500 bpd of bitumen per day.

In March, the Alberta Energy Resources Conservation Board approved Suncor's application to develop three additional stages of its Firebag project.

Endret 18.12.2010 21:54 av OldNick
21:55 18.12.2010

Firebag Stages 4, 5 and 6 each have a planned production capacity of approximately 62,500 bpd. Engineering and planning activities related to Firebag Stage 4 continued during the first quarter to support a target of first bitumen production in the fourth quarter of 2012.

"Regulatory approval for Firebag Stages 4 to 6 provides additional depth to an already substantial portfolio of growth projects," said George. "We'll continue to review that portfolio and expect to outline the next stages of our growth strategy by the end of the year."

In addition to work on expansion of the Firebag project, work is also underway on an extension to the East Coast Canada White Rose field (of which Suncor has a 26.125% interest); expansion of the company's St. Clair ethanol plant; and construction of a naphtha unit, designed to increase the value of the company's Oil Sands product mix.

"We have confirmed our capital synergy target of $1 billion per year through improved sequencing and timing of our projects, a larger pool of high-quality projects to pick from, and capital savings realized as a result of our two companies coming together," said George.

As part of its strategic business alignment, Suncor continued with plans to divest of a number of non-core assets. To date, Suncor has disposed of, or reached agreements to dispose of, assets for aggregate consideration of approximately $1.5 billion.

* On March 1, 2010, Suncor completed the sale of substantially all of its U.S. Rockies upstream assets for net proceeds of US$481 million. Remaining U.S. Rockies upstream assets were sold shortly thereafter.

* On March 31, 2010, the company completed the sale of other non-core natural gas properties, located in northeast British Columbia, called Jedney/Blueberry, for net proceeds of $383 million.

* On March 24, 2010, the company reached an agreement to sell certain natural gas assets located in central Alberta known as Rosevear and Pine Creek. The sale, for proceeds of $235 million, is expected to close in the second quarter of 2010.

* On February 25, 2010, the company reached an agreement to sell all of its assets in Trinidad and Tobago. The sale, for proceeds of US$380 million, is expected to close during the second quarter of 2010.

Remaining proposed divestments include certain natural gas assets in Western Canada and non-core North Sea assets, including all assets in The Netherlands. While the timeline for the divestment of assets remains flexible, Suncor expects most of the remaining sales to occur during 2010. The proceeds of these, and previous sales, are planned to go towards reducing the company's debt.

"From refocusing our asset base and reducing debt, to realizing synergies and aligning processes and platforms across the company - merger integration is on plan and proceeding well," said George.


Suncor's outlook provides management's targets for 2010 in certain key areas of the company's business. Users of this forward-looking information are cautioned that actual results may vary materially from the targets disclosed. Readers are cautioned against placing undue reliance on this outlook.

The following operational outlook has been revised from the operational outlook, previously issued by management on February 2, 2010. The revisions are principally as follows:

* the Oil Sands production outlook has been adjusted to 280,000 bpd (+/−5%) from 300,000 bpd (+/−5%) primarily as a result of the two fires at the upgrading facilities in December 2009 and February 2010, which has also had an impact on the product sales mix, price realizations and cash operating costs;

* the Natural Gas production outlook before remaining targeted divestitures has been adjusted to 580 mmcfe per day (+/−5%) from 680 mmcfe per day (+/−5%) as a result of completed dispositions relating to assets in the U.S.

Endret 18.12.2010 21:55 av OldNick
21:56 18.12.2010

Rockies and northeast British Columbia during the first quarter of 2010; this has also reduced the production outlook relating to targeted divestures;

* the East Coast Canada production outlook has been adjusted to 60,000 bpd (+/−5%) from 55,000 bpd (+/−5%) primarily as a result of observed performance to date;

* the International production outlook has been adjusted to 133,000 boe per day (+/−5%) from 138,000 boe per day (+/−5%) as a result of observed performance to date; and

* the International business production relating to targeted divestures outlook has been revised from 25,000 boe per day to 40,000 boe per day (+/−5%) primarily as a result of a decision in the first quarter of 2010 to sell additional North Sea assets.

The foregoing changes have also had a corresponding impact on the total production outlook which has been adjusted to 608,000 boe per day (+/−5%) from 644,000 boe per day (+/−5%) and total production related to remaining targeted divestures, which has been adjusted to 70,000 boe per day from 75,000 boe per day.

CIBC World Markets

June 10, 2010 Oil & Gas - Large Cap/Integrateds

Suncor Energy Inc.

Stock Rating: Sector Outperformer

High Growth & High Free Cash Flow Should Lead To Multiple Expansion

- As of June 10, we are initiating coverage of Suncor Energy with a Sector Outperformer rating and a 12- to 18-month price target of $44, which is based on a risked NAV analysis and translates to 16x 2011E P/E and 8.75x 2011E EV/DACF.

- We believe that Suncor's valuation is poised to re-rate upwards as the company completes its asset sales and again starts to deliver reliable oil sands operations. The valuation re-rating, combined with above-average growth, should lead to outperformance vs. domestic and global peers.

- We believe that Suncor is capable of delivering 8% oil-weighted production growth through 2015 at least, by spending only 65% of cash flow -- a rare combination of growth and free cash flow.

- Following the $3 billion-$4 billion of asset sales, we expect Suncor's debt to be in the $9.5 billion-$10.5 billion range by the end of 2010, at which point the company will be well situated to begin to utilize the substantial free cash in 2011/2012 to increase debt or buy back shares.

Suncor Energy Expects 10 Percent Annual Growth: CEO

Gennine Kelly, Web Producer, CNBC.com
Sept. 16, 2010

Suncor Energy's merger with Petro-Canada will soon begin reaping results for the company and shareholders, the firm's chief executive told CNBC's "The Strategy Session" on Thursday.

"Where thirteen months after the merger with Petro-Canada. It's not unusual for a company that's gone through a large merger to kind of be in the penalty box for a while. We're getting ready to get out of the penalty box," said Rick George, Suncor's president and CEO.

For quite a while, Suncor, North America's fifth-largest energy company, was creating an enormous amount of value for its shareholders. More recently, that has not been the case.

"In our primary business, which is oil sands, we expect to grow in the 10 to 12 percent per year over the next decade. If you think about that-in an oil patch where most big oil companies are struggling-replacing reserves and getting production rates (up), this is going to look very good on our overall basis," George said.

He added, "Later this fall we will announce the sequence of projects-most of which we have regulatory and environmental approval for."

The purchase of Petro-Canada for $22.2 billion last year was done, according to the Suncor [SU: 32.10] CEO, "to create $400 million of expense savings per-year and a billion dollars on capital savings."

"The ability to cut costs and at the same time get prepared to grow the company is all there," George said, adding, "where on the right track."

Endret 18.12.2010 21:56 av OldNick
21:57 18.12.2010

7 min intervju på CNBC 16/9.


Charles Maxwell, "The Deans of Oil Analysts", om Peak Oil, og hvorfor Suncor Energy er en god investering......

Bracing For Peak Oil Production By Decade's End

Wallace Forbes, Forbes.com

Global oil production will max out in the next 5 to 10 years. Weeden & Co.'s Charles Maxwell lays out the investment impact.

Charles Maxwell is senior energy analyst at Weeden & Co. Maxwell discusses where oil's production peak is and how that affects investments.

Charles Maxwell: The use of petroleum in the world is now up to about 30 billion barrels per year. The rate at which we have found new supplies of petroleum over the last 10 years has fallen to an average, of only about 10 billion barrels per year.

We're obviously in an unsustainable situation. We are now using up a greater number of barrels that we have found in the recent past and that we have reserved in the ground. We are now beginning to use it up relatively quickly--with scary consequences for the future.

The peak of production usually comes sometime between 30 and 50 years after the peak of finding oil. "The peak of discovery," as they call it. For instance, in the North Sea, the peak of discovery was in the late 1960s, and the peak of production was in the late 1990s. So it was around 30 years between the peak of finding oil and the peak production of that oil.

Wallace Forbes: From those sources in the North Sea?

Maxwell: Yes. In the United States, the actual peak of discovery was 1931, quite a bit earlier. We were the first country to actually peak in the world of oil production. Our peak of production came in late in 1970. So that was a 39-year transition from the peak of finding the oil to the peak of producing it.

Now the question remains in front of us, has the world peaked in its level of discovery and if so, how long will it take the world, if it has peaked, to reach the peak of oil output? I believe that the peak of discovery fell in the five-year interval between 1965 and 1970. So if you took it at, say, 1968, and then you added 50 years, you would get to 2018.

Endret 18.12.2010 21:57 av OldNick
21:58 18.12.2010


Forbes: Against that kind of challenging, even scary background, what investments are you recommending to "take advantage" of this? Or what are your thoughts on selling, with this anticipated outlook?

Maxwell: Well, let me follow down a logical path and say that those oil companies that have the widest and the deepest reserve bases, particularly relative to the size of their stock market value, are really the ones that should do the best. We are entering a world in which the value of oil, both above ground and underground, is going to be lifted rather more quickly than anything we've seen since some of the early days of the energy crises we have endured already. And this will be on a continuing basis instead of on a temporary basis.

Companies like Suncor Energy (SU) and Cenovus Energy (CVE), that are located, for the most part, on the great Athabasca oil sands up in the north of Canada, in the Province of Alberta. This is the second largest single reserve base in the world, second to the Orinoco in Venezuela, in oil sands terms. And it also has reserves that are really the equal of the Saudi reserves. And the Saudi reserves are perhaps half produced. But the oil sands of Canada are probably about 1% produced. So, we have an awful lot more oil to produce up there.

I have selected these companies after working with them over many years. For more conservative investors, the more attractive would be Suncor which is the second largest company in Canada and the largest oil company in Canada. Some 55% of their total assets are in the oil sands of Northern Alberta.

As those reserves become critical to the future availability of new oil supplies and as prices rise, SU and CVE will receive a huge lift in their future profits. Owning a piece of them will give you a piece of the largest reserves left in the world that you and I, as private citizens, can buy. We can't buy into the Saudi reserves. We can't buy into the Orinoco reserves in Venezuela because of Chavez. But we can buy into the Canadian reserves, and that's one thing that many portfolio managers I think will wish to do.

Forbes: So Suncor is spotlighted by the kinds of problems and limitations that are coming pretty quickly over the horizon?

Maxwell: Yes.

The other name is a smaller company, Cenovus. It is also attractive and well run and is equal to Suncor in quality. It's a new name, but it's a split-off from a company called Encana, that has always been a well-known Canadian oil and gas company. Cenovus is listed on the New York Stock Exchange, as is Suncor. Because it is a smaller company, it can grow a bit faster than Suncor, but is does not have as much institutional liquidity in the market.

Forbes: Well, it sounds like two very good ideas coming against the background you've outlined. Do oil sands have a more prolonged or similar kind of time frame over which to bring oil to market from them?

Maxwell: Well, it's a good point The average oil company, producing conventional oil in the way that we normally do, by drilling and pumping it out, will peak around the mid-to-late teens, along with the rest of the world, But the oil sands companies average about 2035 to 2045 for their ability to continue producing incremental barrels. So, they keep going for many, many years after the peak has been reached here in the teens by all the other conventional producing companies.

Forbes: I see. So they've got both a shorter-term set of circumstances in their favor and they're going to in fact benefit by bringing product to market down the line while building capacity?

Maxwell: That's correct. And they should become very much more valued by the market, because they will be relatively alone in their ability to bring new barrels to market.

Endret 18.12.2010 21:58 av OldNick
22:00 18.12.2010

Forbes: Well, Charley, I thank you very much, once again. It is, tremendously helpful and also educational to get this background, and to see what are the circumstances we're facing rather sooner than later and to learn of a couple of sound companies in a position to take advantage of these changing circumstances.

Suncor unveils first reclaimed tailings ponds

Sep. 23, 2010 (ctv.ca)

Suncor shows off it first completed surface reclamation of a tailings pond in Canada.

Suncor has unveiled the first completed surface reclaimed tailings pond in the country north of Fort McMurray. The company calling it an industry milestone, showed off 225 hectares of land in front of a crowd of industry and government officials, including the premier.

More than 600,000 trees were planted, and the land shows off a fresh water pond.

"It's not only good for the company but it's good for oilsands development, good for the region, good for the province and most importantly for the country of Canada," said Suncor's CEO Rick George.

Suncor says the 225-hectare site was the company's first tailings pond dating back to 1967. It was closed nearly four years ago to begin the reclamation process.

"It's just absolutely incredible for us in terms of actually demonstrating that our commitment to get this back to a natural state...this is just one pond this is one step," said George.

But tailings ponds have been the target of widespread criticism. Less than three years ago, 1,600 ducks were killed on a Syncrude pond nearby.

And while critics feel Suncor's move is a step in the right direction, some say the sustainability of the areas are still questionable.

"We have more tailings today than we did last year. There are more toxins pouring onto Alberta's once pristine landscape everyday and this toxic stew of carcinogens and heavy metals continue to leech into the ground, poisoning our rivers and downstream communities," said Mike Hudema with Greenpeace.

Suncor has admitted this is just a first step and hopes new dry tailings technology will help reclaim all of its toxic ponds in the next few decades.

"I hope this will set the stage for future reclamation," said Chief Jim Boucher with the Fort McKay First Nation.

The premier hailed the reclamation as an historic achievement. But admits existing tailings ponds will continue to be a challenge for Alberta,

"Albertans are excellent innovators and I'm confident that one day tailings ponds as we know them will no longer exist," said Premier Ed Stelmach.

Recently, three influential U.S. senators wrapped up a tour of Alberta's oilsands. The premier flew to Fort McMurray with the trio of senators who are all part of a senate committee with a stake in Alberta oil.

South Carolina Senator Lindsey Graham, Georgia Senator Saxby Chambliss and North Carolina Senator Kay Hagan participated in the event, which included visits to Syncrude's oilsands facility, and Nexen's Long Lake in situ project and upgrader.

Stelmach also hopes to meet with Hollywood director James Cameron who has expressed an interest in touring the oilsands.

With files from Scott Roberts

[Det er en 2 min nyhets-video på linken]

Endret 18.12.2010 21:59 av OldNick
22:00 18.12.2010

Suncor Energy reports waterfowl landing at oil sands site

Oct. 26, 2010

Calgary, Alberta - Suncor Energy reported waterfowl landings at the company's oil sands site today. Increased waterfowl activity was observed shortly after reports of freezing rain in the area last night. At this time, the company has recovered a small number of oiled birds, which were euthanized on direction from Sustainable Resources Development, Fish and Wildlife.

The company's deterrent systems were fully operational at the time of this incident and, in light of severe weather conditions, additional personnel were deployed to all Suncor ponds with air horns as an additional measure to keep waterfowl away.

Suncor Press Release: Suncor Energy unveils ten-year growth strategy

2011 capital spending plans, strategic partnership with Total support oil sands expansion

Dec. 17, 2010

(All financial figures are approximate and in Canadian dollars unless otherwise noted.)

Calgary, Alberta - Suncor Energy Inc. announced today its plans to increase production to more than one million barrels of oil equivalent per day by 2020, beginning with the company's 2011 capital spending plans. Over the next ten years, Suncor is targeting oil sands production growth of approximately 10% per year and company-wide production growth of approximately 8% per year.

"Our existing assets provide Suncor with a tremendous suite of growth opportunities for the next decade and beyond," said Rick George, president and chief executive officer. "Today, we're announcing what we believe is the optimal plan for steady and manageable growth through 2020."

Key components of the plan include continued development of Stages 3 through 6 of the company's Firebag in situ project, development of a second stage of the MacKay River in situ project and investments and ongoing production in international and offshore operations. In addition, Suncor has entered into a strategic partnership with Total E&P Canada Ltd., setting the terms for the two companies to jointly develop the Fort Hills and Joslyn oil sands mining projects and restart construction of the Voyageur upgrader at Suncor's oil sands operations north of Fort McMurray, Alberta. The transaction is subject to certain regulatory and other approvals, with closing targeted late in the first quarter of 2011.

"The agreement with Total is an important element of Suncor's plans to more than double our oil sands production," said George. "The deal brings a strong partner to the table, helping us to accelerate development of our growth portfolio and share in the capital investment in a third upgrader and development of new mining projects."

"We see several strategic advantages in the partnership with Total. They will be able to access our technological expertise and 43 years of oil sands knowledge, while we will benefit from Total's global operating experience. Together, we will be able to pool our manpower and capital resources and bring our collective strengths to bear to manage these projects using best-in-class operating practices."

"With Total, we not only have a partner with capability and resources that complement our own, but one that shares our vision of responsible energy development through a commitment to a triple bottom line of economic, social and environmental performance." George continued.

Suncor plans to continue investments in renewable energy projects, environmental impact mitigation, environment-focused research and development, collaborative industry initiatives designed to improve technology and community investment initiatives to support the regions in which the company operates.

Endret 18.12.2010 22:00 av OldNick
22:02 18.12.2010

"Our goal is to responsibly develop this great Canadian resource. That means continuous performance improvement in parallel with research and investment in alternative and renewable energy sources," said George. "While much of our work is long term in focus, we have also established nearer-term goals to accelerate land reclamation, reduce absolute air emissions and water use, and improve energy efficiency by 2015. These efforts are expected to continue through - and beyond - this major development phase and will include several new technology approaches to reduce environmental impacts."

2011 capital spending plans

Supporting the first stages of the company's long-term growth strategy, Suncor's Board of Directors approved a $6.7 billion capital spending plan for 2011. Approximately $2.8 billion will be directed toward growth project funding, primarily at the company's oil sands operations, while $3.9 billion in spending is targeted to sustaining existing operations, including significant planned maintenance to support reliability and further deployment of new tailings reclamation technology. Approximately 40% of planned sustaining capital is targeted to spending that is not expected to recur on an annual basis.

"Planned capital investment in 2011 will continue to lay the foundation for our long-term growth strategy through 2020" said George. "We believe this plan strikes the right balance between well-managed growth and investments to support safe, steady and reliable production from our existing operations."

The majority of growth spending will be directed toward expansion of Suncor's Firebag in-situ oil sands facilities. Firebag Stage 3 is targeted to begin production late in the second quarter of 2011, ramping up toward capacity of 62,500 barrels per day (bpd) of bitumen over approximately 24 months. Construction at the company's in situ facilities will then shift fully to Firebag Stage 4 to support a planned completion target in early 2013. Stage 4 also has a planned capacity of 62,500 bpd.

The company is also directing 2011 growth spending toward the Fort Hills oil sands mining project and resuming construction of the Voyageur upgrader, two key elements in the company's longer-term growth strategy.

While Suncor's primary growth focus remains on its large oil sands resource base, 2011 growth spending is also planned for operations in international and offshore operations and renewable energy projects.

"Investment in our international and offshore assets supports our long-term plans by maintaining a relatively low-cost, high cash flow source of production as we move into a period of more concentrated spending in the oil sands," said George. "At the same time, continued expansion of renewable energy projects will help us maintain our position as one of Canada's leading investors in this growing energy sector."

Sustaining capital in the upstream portion of the business for 2011 includes $670 million for deployment of Suncor's TRO tailings reclamation technology, as well as additional funds for maintenance at Oil Sands, Natural Gas and International and Offshore facilities. In downstream operations, spending is primarily focused on planned maintenance and investments to improve environmental performance.

Capital Expenditures ($millions) 2011 full year outlook
Oil Sands total: 4,180
......Firebag 3: 405
......Firebag 4: 875
......Fort Hills: 100
......Voyageur Upgrader: 260
......MacKay River 2: 70
......Millennium Naptha Unit: 220
......Upgrader 2 Turnaround: 350
......TRO: 670
......Other: 980
......Syncrude: 250
Natural Gas: 170
International & Offshore: 1,100
Refining & Marketing: 630
Renewable Energy: 90
Corporate: 530

Total: 6,700

"Our 2011 spending profile is consistent with the key priorities we've outlined: staged capital growth, cost reduction and continuous improvement in environmental performance," said George.

Endret 18.12.2010 22:01 av OldNick
22:02 18.12.2010

Suncor's 2011 capital spending plan is expected to be financed through internal cash flow, proceeds from the agreement with Total, and other potential asset divestitures.

2011 Production Outlook

"Strong, steady and reliable is the focus in 2011," said George. "Despite undertaking a major turnaround at our oil sands operations, we're targeting an increase of about five per cent at the mid-point of guidance over our 2010 production. Completing that maintenance work, coupled with production from Firebag stage 3 as it ramps up, should set us on the path for a strong second half to the year and solid production growth in 2012 and beyond."

With targeted oil sands production increases in the second half of the year and planned divestitures of natural gas assets, Suncor expects production to be weighted more than 90% toward crude oil price-benchmarked production at year-end 2011.

Suncor's outlook provides management's targets for 2011 in certain key areas of the company's business. Users of this forward-looking information are cautioned that actual results may vary materially from the targets disclosed. Readers are cautioned against placing undue reliance on this outlook.

Production (barrels of oil equivalent per day) 2011 full year outlook
Suncor Oil Sands: 280,000 to 310,000
Syncrude production share: 35,000 to 37,000
Natural Gas: 62,000 to 68,000
East Coast Canada: 58,000 to 65,000
International: 110,000 to 120,000

Total production before targeted divestitures: 550,000 to 600,000
Targeted divestitures: 37,000

For more detail on Suncor's 2011 production outlook, please see

Assumptions and Risk Factors Affecting Performance

Assumptions for the Oil Sands 2011 Full Year Outlook include reliability and operational efficiency initiatives which we expect to minimize unplanned maintenance in 2011. Assumptions for the Natural Gas, East Coast Canada and International 2011 Full Year Outlook include reservoir performance, drilling results, facility reliability, changes in production quotas and successful execution of planned maintenance turnarounds. Factors that could potentially impact Suncor's 2011 Full Year Outlook include, but are not limited to:

Bitumen supply. Ore grade quality, unplanned mine equipment and extraction plant maintenance, tailings storage and in situ reservoir performance could impact 2011 production targets.

Performance of recently commissioned facilities. Production rates while new equipment is being lined out are difficult to predict and can be negatively impacted by unplanned maintenance.

Unplanned maintenance. Production estimates could be negatively impacted if unplanned work is required at any of our mining, production, upgrading, refining, pipeline or offshore assets.

Planned maintenance. Production estimates could be negatively impacted if planned turnarounds are not effectively executed.

Planned divestitures. Our ability to execute and timing of planned divestitures could impact production outlook.
Commodity prices. Significant declines in natural gas commodity prices could result in the shut-in of some of our natural gas production.

Foreign operations. Suncor's foreign operations and related assets are subject to a number of political, economic and socio-economic risks. Suncor's operations in Libya may be constrained by production quotas.

Logistics. Our ability to get our products to market may be constrained due to planned and unplanned outages from third-party service providers.

Endret 18.12.2010 22:02 av OldNick
22:03 18.12.2010

Background and Further Information

Suncor's ten-year growth plan includes the following major components, listed chronologically by targeted operational dates:

Firebag 3: 2011 (Q2)
Firebag stage 4: 2013 (Q1)
Fort Hills mine*: 2016
Voyageur upgrader*: 2016
MacKay River stage 2*: 2016
Joslyn mine**: 2017/2018
Firebag stage 5*: 2018
Firebag stage 6*: 2019

International and Offshore
Golden Eagle (UK North Sea)**: 2014/2015
Hebron (East Coast Canada)**: 2017

* Subject to project sanction.
** Subject to regulatory approval and project sanction.

In addition to the projects noted above, Suncor expects to continue to leverage existing assets and pursue exploration opportunities in Norway, Syria and Libya.

Key terms of the agreement between Suncor and Total include:

Total will acquire a 49% interest in Suncor's planned third upgrader. Upon completion, the planned 200,000 barrel per day facility will be operated by Suncor.

Total will also acquire a portion of Suncor's interest in the Fort Hills oil sands project, resulting in Suncor holding a 40.8% interest, Total holding 39.2%, and Teck Resources Ltd. holding 20%. Currently, Suncor holds a 60% interest, with Total and Teck each holding 20%.

Suncor will acquire a 36.75% working interest in the Total-operated Joslyn joint venture with Total holding a 38.25%, Occidental Petroleum holding 15% and Inpex Canada Ltd. holding 10%. Currently, Total holds a 75% interest, Occidental Petroleum a 15% interest and Inpex Canada Ltd. A 10% interest.
Suncor will receive cash consideration totaling approximately $1.75 billion from the transaction.

Suncor and Total have agreed to develop the Fort Hills mine and Voyageur upgrader in parallel, so that both come on stream in 2016.

Execution of the Fort Hills and Joslyn projects, as well as the continued construction of the Voyageur upgrader, is subject to sanction by the partners in these ventures and requires approval by Suncor's Board of Directors.

Kommentar fra Globe and Mail:

Suncor, Total in $1.8-billion oil sands deal

Nathan Vanderklippe, Calgary, Globe and Mail
Dec. 17, 2010

Suncor Energy Inc. (SU.T, SU.N) and Total S.A. (TOT.N) will jointly embark on a massive oil sands growth strategy, with a new partnership that will see the two companies spend the next seven years spending tens of billions to build two huge new mines and a bitumen upgrader.

Under the terms of a partnership, announced Friday morning, Suncor and Total plan to resume construction of the stalled Voyageur upgrader and build both the Fort Hills and Joslyn mines.

The partnership is a major shift in the way the oil sands are developed, giving Total access to Suncor's 43 years of oil sands experience, and giving Suncor access to Total's deep pockets and undeveloped property. It is also the most substantial indication to date that the global energy industry has completely regained its confidence in the oil sands, setting the stage for a huge return of work to the area - and further raising concern that the next few years will see another substantial Fort McMurray boom.

Suncor chief executive officer Rick George said the company is embarking on "some unparalleled growth projects and a growth plan that is second to none in our industry."

Though the companies declined to give actual cost estimates, Suncor said it expects to pay around $60,000 per flowing barrel for the new mines, and just over $30,000 per flowing barrel for its upgrader. With 160,000 barrels of production expected at Fort Hills, 100,000 at Joslyn and 200,000 at Voyageur, that works out to spending roughly $15.6-billion for the mines, and $6-billion for the upgrader.

Endret 18.12.2010 22:03 av OldNick
22:04 18.12.2010

That spending has yet to be sanctioned by the boards of the companies involved. An upgrader is a kind of pre-refinery that transforms thick bitumen into a lighter oil that can flow through pipelines and be further refined into end products like gasoline and jet fuel.

Total alone says it plans to have spent $20-billion in Alberta by 2020, a figure that includes several existing acquisitions and spending on its Surmont project, which it co-owns with ConocoPhillips Co.

"This is a major investment position in the province," said Jean-Michel Gires, the president of Total E&P Canada Ltd., in an interview Friday morning.

Under the terms of the deal, Suncor will sell Total a further 19.2 per cent interest in Fort Hills, bringing the French company's stake up to 39.2 per cent and Suncor's down to 40.8 per cent from 60. Suncor will also cede a 49 per cent interest in its partially-built Voyageur upgrader, which has been on hold for several years.

In exchange, Total will pay Suncor $1.75-billion and give the company a 36.75 per cent interest in its Joslyn mine, bringing Total's stake in that project down from 75 per cent to 38.25 per cent.

Though the deal hands Suncor substantial cash and an additional 160-million barrels of crude reserves, it also gives Total the benefit of the money Suncor has already spent on Voyageur, which is 15 per cent built.

"We think altogether it's a very balanced deal and a very synergistic deal," Mr. Gires said. The two companies will pool expertise, human resources and technical capacity. As part of the deal, Total will abandon an upgrader it had proposed to build on its own. It will instead use Voyageur to upgrade its share of the bitumen from the two new mines.

"I think we are going to have a fantastic alliance moving forward in order to promote these three assets," Mr. Gires said.

There is little doubt, however, that the immense volume of activity propelled by this deal will add to labour and cost pressures in the oil sands. The past few months have seen a large spate of projects move forward from companies like Husky Energy Inc., Canadian Natural Resources Ltd., Athabasca Oil Sands Corp. and others. The Suncor-Total announcement comes amid warnings that have already been sounded by engineering and construction firms about a looming labour crunch.

Mr. George acknowledged this will be an issue.

"One of the biggest challenges to bringing on large-scale projects like this is managing costs," he said.

Going forward, Suncor expects to have a maximum of 4,000 construction workers per site - down from the 7,000 it has reached in the past - and will use several other measures to attempt to limit inflation.

"We plan to keep our construction contracts to a manageable size, optimize module work that can be done offsite and award contracts that include a portion of risk-sharing," Mr. George said.

Together, the new projects will give Suncor a planned 10 per cent annual growth for the next decade, as it works to grow its overall output to 1-million barrels a day by 2020. The next few years will be the most dramatic. From now to 2014, Suncor will see 20 per cent compounded annual growth in oil sands capacity. Between 2012 and 2014, its capital spending will reach between $8-billion and $9.5-billion a year.

That's far above its $6.7-billion projection for 2011, a figure that includes $2.8-billion in growth spending.

"We currently anticipate that we can fund all this growth from internally-generated cash flow at roughly $80 to $85 (U.S. a barrel) oil," Mr. George said.

The third phase of Suncor's Firebag project, which uses oil wells rather than a mine to extract bitumen, will enter production by mid-2011, the company said, adding 62,500 barrels per day of output capacity. Suncor will begin work on Firebag's fourth phase next year, and says that project should add a further 62,500 barrels per day of capacity by 2013.

Endret 18.12.2010 22:04 av OldNick
22:05 18.12.2010

In 2011, it will spend $405-million (Cdn.) on Firebag 3, $875-million on Firebag 4, $100-million on Fort Hills and $260-million on Voyageur.

Energy giants team up on blockbuster deal

Suncor-Total partnership seen as 'vote of confidence' in resource; billions to be spent on new mines, upgrader

Dec. 18, 2010
Nathan Vanderklippe, Globe and Mail

Calgary -- A new partnership between oil sands giants will pour tens of billions of dollars into new projects over the next decade, as the world's biggest energy companies increasingly train their attention on northern Alberta's massive reserves.

In a deal that reshapes the ownership of the oil sands and raises new worries about a looming Fort McMurray labour crunch, Suncor Energy Inc. and Total SA have agreed to jointly build two new bitumen mines and an upgrader that will convert the tar-like substance into crude oil.

"The oil sands is the second-largest oil base in the world and we're the premier developer in that. So this, I think, is a vote of confidence," said Suncor chief executive officer Rick George in an interview.

Though actual construction has yet to be sanctioned by either company, the partnership heralds the most significant return to the oil sands since the economic crash brought numerous projects to their knees. Together, Suncor and Total will work to reinvigorate two of the most high-profile of those projects.

Both the Fort Hills oil sands mine and the Voyageur upgrader were stopped when costs began to spiral. Now, Total is boosting its stake in both projects, and the two companies say they should be built by 2016. In exchange, Total is giving Suncor $1.75-billion and a stake in its Joslyn mine.

Though the companies did not reveal specific costs, they disclosed ballpark figures that show they are contemplating a massive expenditure. The two mines will cost roughly $15.6-billion, while it will cost another $6-billion or so to complete Voyageur.

Combined with what it has already spent to acquire an oil sands stake, that means Total alone will spend $20-billion on Canadian projects by 2020. The French oil giant will spend the next few years boosting its Alberta work force from its current 250 to 1,400.

"This is a major investment position in the province," said Jean-Michel Gires, the president of Total E&P Canada Ltd., who expects the company will produce 200,000 barrels per day in Canada by the end of 2020.

"I think it's all good news for the province about its capacity to promote the development of its resource," he said.

At the same time, Suncor expects strong oil sands growth to propel an 8-per-cent annual increase in oil output for the next decade, bringing it to a million barrels per day by 2020. It plans to spend between $8-billion and $9.5-billion between 2012 and 2014 as it builds new projects.

Yet even those most optimistic about the new partnership concede there could be problems realizing such ambitious spending plans.

Money has come flooding back into the oil sands, with major projects either under construction or soon to begin from companies such as Imperial Oil Ltd., Husky Energy Inc., BP PLC, Syncrude Canada Ltd. and Canadian Natural Resources Ltd. Major engineering and construction firms have warned that the next few years could bring another labour crunch, and Mr. George acknowledged that "the biggest risk, the biggest challenge, is to get enough manpower on these projects."

Suncor has made changes to lessen that burden. It has structured each project to need no more than 4,000 workers at a time - down from the 7,000 it has used in the past. It has begun building a greater share of components off-site, and asked contractors to shoulder part of the inflation risk.

Endret 18.12.2010 22:05 av OldNick
22:06 18.12.2010

Mr. George admitted that Suncor is "adding to" a slate of projects that may result in cost pressures. But, he said, now that it has merged with Petro-Canada and partnered with Total, Suncor has far more power over how much work is done, and when.

"You have to remember, we're the biggest player and we'll have a lot of direct influence," he said. "We're not going to be at peak construction rates at all three projects at the same time. We'll have some control of what labour we're using - like when you're going through a peak on electricians, or pipefitters, or boilermakers, or instrumentation people."

Others, however, say Suncor and Total may be boosting their spending at a difficult time. Work on Voyageur, for example, will begin next year, while full sanctioning decisions on all three projects are expected by the end of 2012. At the same time, labour experts are forecasting potential labour shortages for 2012 and 2013.

"It's going to be a mess again, no doubt," said Phil Skolnick, managing director of equity research for Canaccord Genuity.

"The biggest issue is everyone is talking about joint ventures to accelerate or bring forward value. Not everybody can do that. You can't accelerate in the oil sands business. We know that. We've seen it before."

Suncor Energy (SU)
Close: $36.30, down 18

Total SA (TOT)
Close: $52.74 (U.S.), down 21




Proposed oil sands mine, with 100,000 barrels per day of production
First oil: 2017
Cost: roughly $6-billion
Status: has yet to receive full regulatory approval


Before the deal
Total SA: 75%
Occidental Petroleum: 15%
Inpex Canada Ltd.: 10%

After the deal
Total SA: 38.25%
Occidental Petroleum: 15%
Inpex Canada Ltd.: 10%
Suncor: 36.75%



Partially built oil sands upgrader, with proposed 200,000 barrels per day throughout
Startup: 2016
Remaining cost: roughly $6-billion


Before the deal
Suncor: 100%

After the deal
Suncor: 51%
Total SA 49%


Proposed oil sands mine, with 160,000 barrels per day of production
First oil: 2016
Cost: roughly $9.6-billion


Before the deal
Suncor: 60%
Total SA: 20%
Teck Resources: 20%

After the deal
Suncor: 40.8%
Total SA: 39.2%
Teck Resources: 20%

Endret 18.12.2010 22:07 av OldNick
18:07 15.08.2013

Lite skrevet om Suncor Energy, Oil Sands major "de luxe" - her på berget.

På tross av at driften av selskapet og utviklingen av de nesten 30 mrd fat reserver+ressurser de sitter på (for øyeblikket) går utmerket, har aksjen lag'et resten av markedet, både NYSE, TSX og oljeindekser.


- Mye negativ fokus på den såkalte "skitne tjæresanden" de utvinner fra, dessuten
- usikkerheten om den lange rørledningen fra Hardisty, Alberta (utenfor Edmonton) til Houston, Texas, kalt Keystone XL. Dette har ført til sterkt redusert salgpris på tungoljen (bitumen) de produserer direkte fra feltene, mens Suncor konverterer det meste til syntetisk råolje, som selges for en premium vs. WTI.

I går rapporterte Bloomberg at i Berkshire Hataway's siste rapport til SEC viste dert seg at det US$280mrd selskapet (til W.Buffet) hadde gått til snakaffelse av nesten 18 mill aksjer i Suncor Energy, en post tilsvarende ca. 1.2% av selskapet, verdsatt til over US$500m.

Det har fått fart på aksjen, opp nesten 4% på 2 dager. Og mer blir det, tror jeg.

Mange analytikere har 12 mnd. kursmål rundt C$45/aksje. Idag er kursen ca. C$34.

Warren Buffett reveals hefty stake in Suncor Energy Inc

Noah Buhayar, Bloomberg News

Berkshire Hathaway Inc. reported a stake in Suncor Energy Inc. and added to a holding in General Motors Co. as billionaire Chairman Warren Buffett and his deputies spent the most on stocks in a quarter since 2011.

Buffett's firm owned 17.8 million Suncor shares on June 30, a stake valued at more than US$500 million in the Calgary-based heavy-oil producer, Berkshire said Thursday in a regulatory filing. The company also added to its holdings in U.S. Bancorp and Wells Fargo & Co. The filing omitted some data that was reported confidentially to regulators.

Mer på link
18:45 16.08.2013

Warren Buffett effekten er påtakelig, aksjen har løftet seg med enn 6% de siste 2 dagene.

Dette er en stor tillitserklæring for oil sands industrien, og det påstås å være Buffetts første investering i et Canadisk selskap overhodet.

Buffett er dog nokså involvert i oil sands/shale oil produksjonen allerede, siden Berkshire's datterselskap Burlington Northern Santa Fe (BNSF) jernbaneselskap er en av de som frakter mest olje på jernbane innenlands USA, og derfor kan Suncor-investeringen også sees på som en hedge for ham.

Om Obama godkjenner Keystone XL-rørledningen gjennom USA, vil Suncor antakeligvis tjene vavittig på det, mens hans BNSF kan lide, om Keystone ikke blir godkjent, kan Suncor lide, mens hans BNSF tjene stort på ytterligere utvidelse av jernbane kapasiteten, da mer oil sands vil måtte fraktes med jernbane, ihvertfall på mellomlang sikt.

Warren Buffett's Suncor stake may be 'turning point' for oil sands stocks

Yadullah Hussain, Financial Post

Warren Buffett's massive stake in Suncor Energy Inc. could spark investor interest in the battered stocks of Canadian oil sands' companies, according to analysts.

Analysts believe Mr. Buffett's foray into the Alberta oil sands may prove to be a major fillip for the wider industry.

"This may be a turning point, possibly," said Peter Tertzakian, chief energy economist at Arc Financial Corp. "Mr. Buffett is obviously recognized as a value investor, and the oil sands sector represents significant value."

Oil sands operators have been ramping up production over the years, but lower Canadian crude price and concerns regarding market access have deflated investor sentiment.

"The market returns have been flat for two years, but in the meantime we have seen significant improvements - the whole area is attracting $20-billion a year in investment," Mr, Tertzakian said.


The pipeline uncertainty has soured investor sentiment. An RBC Capital Markets analyst recently reported that Wall Street and other major U.S. investors have been lukewarm on Canadian oil companies for quite some time.

"No question that the underperformance of Canadian large cap energy has weighed upon the morale of these investors," Greg Pardy, RBC Dominion Securities Inc. analyst, said in a July note after meeting six clients including five hedge fund managers in New York.

Robert Bedin, director of energy research at ITG Investment Research, also noticed that investors evinced little interest in oil sands during his trip to New York two weeks ago.

"So, clearly an alarm clock went off as Warren Buffett took a position like that," Mr. Bedin said.


The company is trading at some of the lowest cash flow multiples and has one of the longest reserve life of 80 years in its peer group.

"Even on other typical metrics, it's at kind of an all-time low," Mr. Dunn said.

Mr. Buffett's history of taking a long-term macroeconomic and sector view also bodes well for the wider industry.

"We think it is a positive for the sector," Mr Bedin said. "Suncor is probably a pretty good proxy for Canadian oil price and if Mr. Buffett is bullish on the oil price, it's good across-the-board for Canadian names."


Another strategic piece of the puzzle is Mr. Buffett's ownership of Burlington Northern Santa Fe Railway company, which has been one of the biggest beneficiaries of the crude-by-rail phenomenon.

The Oracle of Omaha also has a stake in Union Tank Car, which is among the few companies in North American building oil tank cars.

With the Suncor stake, Mr. Buffett wins if Keystone XL is approved, and he may still be on to a winner if his railway company fills in Keystone's void.

Mer på link

Endret 16.08.2013 18:46 av OldNick
18:46 16.08.2013

Buffett bets on Suncor and oil sands

Tim Shufelt, Globe and Mail
Last updated Friday, Aug. 16 2013

Warren Buffett has finally deployed a sliver of his immense wealth into Canada, registering a vote of confidence in the future of the resource sector.

The head of Berkshire Hathaway Inc. and one of the world's foremost investors, Mr. Buffett revealed in a U.S. regulatory filing that he has accumulated a stake of 17.8-million shares in Suncor Energy Inc., Canada's biggest oil and gas producer. His investment is worth $620-million at the current share price.

"It demonstrates some faith in the future of the oil sands in the American mind," says Michael Smedley, chief investment officer at Morgan Meighen & Associates in Toronto.

Buffett watchers could not recall the Oracle of Omaha having ever invested in a Canadian corporation before. "If it's not the first time, it's definitely the largest stake he's ever taken in a Canadian company," said Barry Schwartz, a vice-president at Baskin Financial Services.

The famously patient investing guru first hinted at his interest in the Canadian energy sector five years ago, when he and fellow tycoon Bill Gates made a stealth visit to Canadian Natural Resources Ltd.'s Horizon project near Fort McMurray, Alta.

The mere whiff of Mr. Buffett's presence lifted hopes for the oil patch, then besieged by environmental criticism after 500 ducks died on a Syncrude Canada Ltd. tailings pond, and a mutated fish with two jaws was found in Lake Athabasca. But Mr. Buffett was cagey about the purpose of his visit. "I go to the movies, but I don't buy movie companies," he said a few days later on CNBC, explaining his visit was for educational purposes. "If I understand the tar sands today . I've got that filed away and I can use it at some later date."

Suncor is of obvious appeal to those hunting for cheap energy stocks. It is cheaper than most of its peers in terms of its share price to cash flow and book value.

"Suncor is one of the most heavily undervalued Canadian integrated oil producers," said David McColl, a Morningstar equity analyst. "It is no surprise that a value investor like Berkshire Hathaway would view it as a phenomenal investment opportunity."


"He looks to buy companies that generate enormous free cash flow and start returning that to shareholders," Mr. Schwartz said. "This company is just printing money."

Mer på link

Gates, Buffett Visit Canadian Oil Sands Project

By Ron Haruni, own blog
Aug 21, 2008

Gates, Buffett Visit Canadian Oil Sands ProjectWarren Buffett and Bill Gates toured this week the Canadian Natural Resources Ltd's Horizon oil sands project. The $8.7 billion development involves the extraction of oil sands reserves 70 km north of Fort McMurray, Province of Alberta.

The men, according to Reuters - were given details on the Canadian oil industry by the Canadian Association of Petroleum Producers (CAPP). Greg Stringham, vice-president of markets and fiscal policy at the association said "they were asked to come up and do a short presentation".

The Horizon Oil Sands Project indicates an estimated 16 billion barrels of bitumen in place, with approximately 6 - 8 billion recoverable barrels under existing mining technologies.

Canada, has more than 170 billion barrels of proved oil sands reserves, ranking only second behind Saudi Arabia in oil reserves. Not only has this particular industry a unique position in today's global energy market, but in terms of future reliable oil supplies - Canada's oil sands are important since they will likely account for a greater share of U.S. oil imports. Which is why major U.S. oil co's like Sunoco (SUN), Exxon/Mobil (XOM), Conoco Phillips (COP), and
07:18 24.09.2014

Suncor finner nye eksport-ruter for sin bitumen (ikke oppgradert) fra Alberta oil sands operasjoner.

Dette skjer nok hovedsaklig pga. at deres Montreal-raffineri er nede i 11 uker for tungt vedlikehold.

Suncor sends its first tanker of Western Canada heavy crude to Europe

Nia Williams, Reuters
Sept. 23, 2014

Calgary, Alberta - Canada's largest oil and gas producer, Suncor Energy Inc, is shipping its first ever tanker of Western Canadian heavy crude from Canada's East Coast to Europe, a company spokeswoman said on Tuesday.

Suncor spokeswoman Sneh Seetal confirmed Reuters shipping data that shows the aframax tanker Minerva Gloria was set to pick up a cargo of crude oil from the port of Sorel-Tracy on the St. Lawrence River in Quebec.

Seetal declined to comment on where in Europe the crude cargo is going, citing commercial confidentiality. According to Reuters data it will be discharged in the Mediterranean.

The crude was delivered by rail to a storage facility in Sorel-Tracy that is owned by Kildair Service Ltd.

Barclays analyst Michael Cohen said he did not know of any other instances of a cargo of Western Canadian crude making its way to Europe via rail and tanker from Canada's East Coast.

For years producers in the oil sands in the landlocked province of Alberta in Western Canada have been desperately seeking ways to get their crude to tidewater and higher-priced international markets.

The emergence of this new and largely unnoticed export route is likely to incense environmentalists who are seeking to block any avenue for shipping crude from the Alberta oil sands, where production entails high greenhouse-gas emissions, to refiners.

But it shows that despite environmentalists' efforts for the past six years to stall the Keystone XL pipeline from Alberta to the U.S. Gulf Coast, companies facing growing production of oil sands crude, and deepening discounts, are seeking other means, including rail, to get their crude to markets.

The shipment also shows how Canada's heavy crude is starting to compete with crude from producers such as Russia and Saudi Arabia for customers in Europe. Pipeline company Enbridge Inc shipped a first cargo of re-exported Canadian crude from the U.S. Gulf Coast to Europe earlier this year.

Seetal declined to say what grade of inland heavy crude is being exported, adding it is not necessarily oil sands crude and that Suncor shipped both its own crude and crude bought from other producers in Western Canada.

Limited space on oil export pipelines can to lead to bottlenecks in Alberta, where production is ramping up rapidly, forcing producers to accept deep discounts on their crude relative to U.S. domestic grades.

"Canada and the United States remain our key markets but it's important that we establish customers outside North America," Seetal said.

"The crude is inland crude, shipped by rail to the Kildair terminal, where it is loaded on to tankers. This is the first time Suncor has done that."

Since July 19 Suncor has been sending 30 rail cars per day from Western Canada to the Sorel-Tracy terminal, according to Kildair Chief Executive Officer Daniel Morin.

Suncor also regularly ships crude by rail to its 137,000 barrel-per-day Montreal refinery.

The Sorel-Tracy facility has a rail offloading terminal, 3.2 million barrels of crude oil and petroleum-product storage capacity, and a dock that can accommodate vessels up to 260 meters in length.

Kildair receives the rail cars from Suncor and offloads the crude into storage tanks before it is loaded on to a tanker, Morin said, adding that Suncor retained ownership of the crude throughout.

"They can export the product to locations overseas or alternatively decide to bring it back to Montreal," Morin said.

He declined to say how much storage capacity Suncor is leasing from Kildair.

Endret 24.09.2014 07:18 av OldNick
08:18 08.10.2015

Over et år siden siste innlegg.

Vel, det har vært et relativt turbulent år for oljesand-industrien, men Suncor fremstår som det klart sterkest selskapet av de "uavhengige", og særlig kanadisk baserte i sektoren.

Og det har nå gitt seg utslag i at de har stertet en prosess med sammenslåinger, som var spådd å komme pga. sektorens relative høye kostnader, ikke minst investeringer.

Mandag ble det røre i olje-sand industrien.

Suncor Energy (T:SU, N:SU) byr ca. C$6.6 mrd. for Canadian Oil Sands (T:COS) utestående aksjer (inkl. netto gjeld på ca. C$2.3 mrd).

COS's viktigste eiendel er 36.74% eierskap i JV-prosjektet Syncrude, som er oljesand-industriens nest største gruver og oppgraderingsanlegg med kapasitet til å produsere over 300k f/d (max. 350) med syntestisk råolje (SCO).

Siden Nexen, som har oljesand-prosjektet Long Lake ble kjøpt opp av kinesiske CNOOC for 2 år siden, så er det alment kjent at den Canadiske regjeringen ikke vil gi konsesjon til utenlandske oppkjøpere av sentrale, canadisk eid (og kontrollert) oljesand-operatører.

Men Suncor, som er Canadisk kontrollert og den største oljesand-operatøren, vil ikke ha slike restriksjoner.

Suncor vil gjøre overtagelsen kun med aksjebytte, og har bydd 0.25 SU-aksjer for hver COS-aksje utestående.

Suncor har ikke fått tilsagn fra noen eiere før budet gikk ut. Som de skriver, de har hatt samtaler med styre og ledelse av COS lenge, men har ikke kommet noen vei. Til en viss grad har både Syncrude og COS vært dårlig styrt og operert. Imperial Oil (25% eier) har operatøravtale med Syncrude JV, den kan nå Suncor, hvis de får tilslag får 48.74% JV-eierskap, kunne komme til å overta ved neste kontraktsutløp, om de får tilslag og blir største Syncrude-eier).

Det er altså betydelig besparelsespotensiel både for Syncrude og COS, som har hatt en betydelig stab selv for å styre et rent papirselskap.

Suncor Energy commences offer for outstanding shares of Canadian Oil Sands Limited

Oct. 5, 2015


For å beskytte seg selv, og aksje-eierne som de påstår, kom styret i COS ut med en ny "gift-pille - Poison Pill" (de hadde en i reglene, men i den nye forlenges perioden som et bud må stå fra 60 til 120 dager). En Shareholder Rights Plan ("gift-pille") er tillatt i Canada for å hindre fiendtlige bud som utnytter spesielle situasjoner for å overta selskap billig. Den nye regelen som sier at dersom det kommer et fiendtlig tilbud som ikke er godkjent av styret, så gir den styret rett til å tillate utstedelse av en ny aksje for hver aksje de andre eierne eier, andre enn den som gir det fiendlige tilbudet, dersom de oppnår aksept fra 20% av utestående aksjer eller mer. De nye aksjene vil bli solgt med en betydelig rabatt til tilbudsprisen. Slik sett vil derfor byder kunne bli sterkt utvannet dersom betingelsene oppfylles.

Canadian Oil Sands Acts to Protect Shareholders From Opportunistic Offer With New Shareholder Rights Plan

COS Pressemelding/Marketwired
Oct. 07, 2015


Noen videoer fra BNN.ca

Suncor CEO: Why COS should take our $4.3B offer, 05.10.2015

Suncor's bid for Canadian Oil Sands looks more like a proxy fight: McGlaughlin, 07.10.2015

Det ligger en rekke videoer fra siste 3 dager på link.
16:02 29.01.2018

Suncor Energy's siste store greenfield oljesand-prosjekt, Fort Hills har produsert sin første olje (bitumen).

Suncor Energy transitions to continuous operations at Fort Hills

Suncor PR7Marketwired
Jan. 29, 2018

Calgary, Alberta - Suncor today announced that the Fort Hills project is continuing its steady ramp up of production following the safe startup of secondary extraction on Jan. 27, 2018. Fort Hills, which is located approximately 90 kilometres north of Fort McMurray, has a capacity of approximately 194,000 barrels per day (bbls/d), approximately 103,000 bbls/d net to Suncor.

As expected, the first of three trains from secondary extraction is now online and production on this train will continue to ramp up through the first quarter.

"With operations at Fort Hills now in continuous production, we've brought one of the best long-term growth projects in our industry into service and we're now focused on the safe and steady ramp up through 2018," said Steve Williams, Suncor president and chief executive officer. "Thanks to the hard work and diligence of our employees, contractors and joint venture partners, we were able to accomplish this safely and efficiently. Fort Hills will provide energy and employment and generate returns for decades."

At peak construction, Fort Hills employed an average of 7,900 people. Now in operation, Fort Hills employs approximately 1,400 direct employees and the vast majority have been hired from Alberta.

The Fort Hills project was sanctioned by the Fort Hills partners in 2013. The project was designed in stages in order to level load resources through construction and development. This phased approach provided for a progressive turnover of assets to operations over time, avoiding a commissioning bottleneck in the final stages of the project, and enabling early testing of the Mine, Primary Extraction and Utilities facilities. The project has already completed five test runs of the plant, producing 1.4 million barrels of froth.

The second and third trains of secondary extraction are being insulated and expected to start up in the first half of 2018, as planned. Fort Hills remains on track to reach 90% capacity by the end of 2018, as per the Corporate Guidance issued in November 2017.

Fort Hills is operated by Suncor which holds a 53.06% interest in the project. The Fort Hills joint venture partners are Total E&P Canada Ltd. (26.05%) and Teck Resources Limited (20.89%). Fort Hills bitumen production is blended for shipment to market at the East Tank Farm Development, a joint venture between Fort McKay First Nation, Mikisew Cree First Nation and Suncor.
12:27 08.02.2018

Suncor Energy kom med Q4-2017 rapport i går.

Den var OK, men ikke ekstraordinær.

Men relativt god cashflow, de lave prisene tatt i betraktning.
Og økt utbytte, sammen med betydelig tilbakekjøp av aksjer, som de også planlegger i 2018.

Regner med dette gir god støtte til aksjekursen, som har falt noen % i markedsuroen som har vært.

- Cash flow fra drift var C$3.0 mrd. i Q4 (C$1.83/aksje).
- Netto overskudd C$1.38 mrd. i Q4 (C$1.83/aksje).
- Total produksjon i Q4-2017 var 0.736m f/d o.e., litt lavere enn Q4-2016. Over 0.6m f/d fra oljesand-felt.
- De har også en E&P-divisjon (hovedsakelig på den kanadiske østkysten, men har også eierandeler i Buzzard, UK og felt på NCS. Også noe on-shore Libya og noe som ikke produserer i Syria (alt amortisert). Denne produserte 118k f/d o.e.
- Cash cost i oljesand-divisjonen var på C$24.20/fat (C$32.55 i Syncrude JV).
- Nå er de i oppstartfasen av den siste greenfield-prosjektet Fort Hills i Alberta (se omtale i Oljesand-tråden, ref. OldNick #19797) som de visstnok mener skal kunne produsere opptil 195k f/d bitumen til markedet (SU har 53% i JV, dvs. rett på ca. 100k f/d av disse).

TSX:SU, Suncor Energy reports fourth quarter 2017 results

Company PR
Feb. 08, 2018

Endret 08.02.2018 12:31 av OldNick
13:46 27.07.2018

[Beklager! Nye innlegg er bare tilgjengelig for abonnenter! Allerede registrert? Logg inn eller Gå til registrering og kjøp abonnement!]
Varsling på tema     Varsling på stikkord

StockTalk er en tjeneste levert av Kreateam Consult AS. Orgnr. 911 839 806 MVA
Adresse: Postboks 39 Holmlia, 1201 Oslo. Email: st@stocktalk.no Tlf. 40 07 31 70
Kontakt oss | Hjelp | Regler | Sett som startside | Legg til favoritter