Suncor Energy takes a shine to the cold of Canada. That country's largest energy company explores for, processes, and markets oil and natural gas. In 2011 it reported net proved and probable reserves of 3.9 billion barrels of synthetic oil, 1.1 billion barrels of bitumen, 539 million barrels of oil, and 1.4 trillion cu. ft. of natural gas. Suncor Energy was first company to produce commercial crude oil from Canada's Athabasca oil sands. It also holds 12% of Syncrude. Its Sunoco unit refines crude oil and processes and distributes fuels, petrochemicals, and heating oils, and invests in renewable energy. Suncor Energy also operates a nationwide network of gas stations, primarily under the Petro-Canada brand.
While Suncor Energy's core long term business is its oil sands operations (6.1 billion barrels of estimated reserves, and 23% of 2011 revenues), it also has conventional natural gas assets as well as international and offshore oil exploration and production assets. The company has four refineries (in Alberta, Ontario, Quebec, and Colorado -- 455,000 barrels of combined capacity per day) and a network of 1,500 Petro-Canada retail gas stations.
To meet clean air regulations the company is also investing in green energy. It has six wind power projects (355 MW) and operates Canada's largest biofuel plant (400 million liters of ethanol per day) at St.Clair, Ontario.
In addition to its production, refining, and marketing operations across Canada (and in Colorado) the company has exploration assets in Libya, Norway, Syria, and the UK. (In 2011 Suncor Energy announced it would exit Syria in light of international sanctions imposed against that country).
Acquisitions and increased production from oil sands properties and higher commodity prices helped to lift Suncor Energy's revenues by 7.5% in 2011, despite a poor gas asset performance due to low natural gas prices. The revenue growth (coupled with lower expenses than in 2010 when the company carried significant losses on asset disposals) helped to lift net income in 2011 by 18%.
Suncor Energy is one of Canada's largest oil sands producers. Oil sands, which hold deposits of heavy bitumen, make up nearly a third of Canada's oil production. To further develop its oil sands assets, in 2010 the company formed a strategic alliance with TOTAL. As part of the deal, France-based TOTAL paid Suncor Energy about $1.7 billion to acquire 19% of Suncor Energy's 60% interest in the Fort Hills mining project and a 49% stake in the Voyageur Upgrader project near Fort McMurray. Suncor Energy acquired about 37% of TOTAL's stake in the Joslyn project. In 2011 Suncor Energy announced plans to produce 1 million barrels per day of oil equivalent from its oil sands holdings by 2020.
Boosting its profile as an integrated energy company, in 2009 the company acquired Petro-Canada in a $15 billion deal. The acquisition created an energy behemoth with extensive holdings in oil sands, solid conventional exploration and production assets, and a major refining and retailing network. Following the Petro-Canada deal the company divested about $1.5 billion of non-core assets in Western Canada, the US, Trinidad and Tobago, and the North Sea. In 2010 Suncor Energy sold its North Sea exploration assets (of Petro Canada Netherlands) to Dana Petroleum for $393 million. Later that year it sold a pair of natural gas properties in Alberta to a subsidiary of Abu Dhabi National Energy Company for $285 million. It also sold its Wildcat Hills assets, which produce some 80 million cu. ft. of natural gas per day, to Direct Energy for about $360 million.
▲ Show Less▼ Show Full Description