Canadian Energy Company Suncor Notches Multiple Q1 Records

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Suncor lowered its break-even price for crude oil and said it expected to increase production after setting refining, sales and production records.

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All-Time Quarterly Records

Canadian energy company Suncor said it saw banner performance during the first quarter, with product sales, refining throughput and upstream production all setting records.

The industry footprint for Suncor is wide. Industrial Info Resources data show the company is the parent of some 64 plants across North America and is associated with more than 300 separate projects.

On Monday, the company reported that its upstream production averaged 875,000 barrels per day (bpd) for the three-month period ending March 31, about 2.5% above year-ago levels. Refinery throughput increased 3.1% year-on-year to 498,000 bpd during the first quarter, while refined product sales climbed 12.5% to average 681,000 bpd.

"We delivered record first quarter upstream production and refining throughput in addition to an all-time quarterly record for refined product sales," Rich Kruger, Suncor's president and chief executive officer, said in a statement Monday.

The company's Edmonton Refinery in Fort McMurray, Alberta, can process some 129,500 bpd of crude oil. The facility is slated for a 45-day maintenance period in September, delayed from an initial scheduling for April.

Meanwhile, last month the company said the majority of its bitumen output by 2040 will be produced using steam-assisted extraction technology, an announcement that marked a sea change for the oil sands heavyweight.

About 30% of the company's oil sands operations involve steam-assisted gravity drainage (SAGD), with the rest coming from large-scale mining operations. Within 15 years, the company expects only 40% of its production will come from mining methods.

One of its largest SAGD programs is at the Firebag complex in Alberta. Industrial Info Resources data show the facility has a design capacity of 332,000 bpd. Staff at the facility were evacuated in 2024 during wildfire season in the Canadian Rockies.

Canada is a net crude oil exporter to the United States, though Prime Minister Mark Carney is working to expand trade options given the decline in bilateral relations. Federal data show total foreign deliveries up to December 2024 averaged 4.2 million bpd. Levels last year reached as high as 4.6 million bpd.

Canada Could Support Global Energy Security

In terms of production, the federal government said output could increase 18% or decline 12% by 2050, depending largely on crude oil prices. Canadian oil typically trades at a discount to other benchmarks because it's largely limited to North American markets, though geopolitical risk premium is driving the price of crude oil higher.

Signs of a potential truce in the Middle East conflict drove the price of crude oil sharply lower on Wednesday, with West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, shedding some 7% by mid-day to trade near $95 per barrel. Conflict in the Middle East has led to supply issues ranging from crude oil itself to refined products such as jet fuel.

Suncor debuted the production of jet fuel at its Montreal refinery last year. Canada produces approximately 47 million barrels of jet fuel annually.

Elsewhere, the company said it expects its break-even price will be around $38 per barrel for WTI and production could increase by another 100,000 bpd, both by 2028. Suncor added that it was expecting a 10% increase in refinery nameplate capacity from December guidance to reach 511,000 bpd this year.

Over the three-month period ending March 31, Suncor realized earnings before taxes of US$2.07 billion, compared to year ago-levels of US$1.7 billion. The bulk of the earnings came from its oil sands and refining segments.

By the Numbers

• US$2.07 billion in earnings before taxes
• 12.5% annual increase in refined product sales

Key Takeaways

• Suncor posted multiple records during the first quarter.
• Its break-even for WTI is well below current market levels.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).