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Released August 16, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Like other oil producers, Suncor Energy Incorporated's (NYSE:SU) (Calgary, Alberta) second-quarter 2023 net profit was down from the prior year due to lower commodities prices. The decline comes despite higher production than in the prior-year quarter. In the company's refining segment, crude oil throughput also was up.
Suncor reported second-quarter net earnings of C$1.88 billion (US$1.39 billion), compared with C$4.0 billion (US$2.97 billion) in second-quarter 2022. Industrial Info is tracking more than US$21.3 billion worth of active Suncor projects as the company strives to maintain its output and increase efficiencies across its upstream, midstream and downstream operations.
Suncor, the second-largest oil producer in Canada, reported that its upstream production increased 3% from the prior year to 741,900 barrels of oil equivalent per day. At its Mildred Lake oil sands mine near Fort McMurry, Alberta, Suncor is underway with a project to maintain production at the site, which is expected to be depleted in the near future. At the 7,500-ton-per-hour mining operation, Suncor is establishing two open-pit mines, MLX-West and MLX-East, to sustain bitumen production levels and extend the mine's life by 14 years.
Work on the MLX-West portion kicked off in 2021 and is expected to be completed in 2025. If this portion proves itself economically, Suncor will begin work on MLX-East, putting it on track for completion in 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project reports on MLX-West and MLX-East.
Other projects at Suncor's oil sands facilities include the addition of a natural gas-fired cogeneration unit at its Fort McMurry base. Three outdated coke-fired boilers will be replaced, and two gas-fired turbine generators will be installed. The project will lower operating costs as well as emissions, reducing sulfur-dioxide emissions by 45%, emissions of oxides of nitrogen by 15% and particulate matter by 66%, as well as requiring less water. The 800-megawatt unit will provide power to the 350,000-barrel-per-day (BBL/d) mining operation. Construction began in 2019 and is expected to wrap up toward the end of next year. Subscribers can click here for more details.
Suncor is making other moves to reduce operational expenses. In the just-passed quarter, Suncor took a C$275 million (US$204.1 million) restructuring charge related to its plan to cut 1,500 jobs this year. Suncor also is looking to new equipment to help save costs by deploying a fleet of autonomous vehicles at its three main Alberta sites, which is expected to not only reduce operational costs by US$1 billion, but also enhance safety. Subscribers can click here for more information.
Despite lifting its total upstream production by an average of more than 20,000 barrels oil equivalent per day, lower oil prices brought a year-over-year decline in Suncor's profit. The company also raised its refinery throughput to 394,400 BBL/d from 389,300 in the prior-year quarter. Next year, Suncor hopes to help maintain operational efficiencies at its Fort McMurry upgrader by replacing four delayed coker drums that were built in 1967 and are approaching the end of their operational life. The project will replace half of the eight drums. The remaining four delayed coker drums are set to be replaced in subsequent years. Subscribers to Industrial Info's Refining Project Database can learn more by viewing the reports on Phase I and Phase II of the project.
In its midstream segment, Suncor is gearing up to begin a project to increase flows on its Rocky Mountain Pipeline, which carries crude oil from Wyoming to a Suncor refinery in Colorado. Working in segments of 10-15 miles, Suncor will replace the 10-inch-diameter line with 16-inch pipe to transport up to 33,900 BBL/d of crude oil. Work is expected to begin later this year, putting the project on track for completion in 2024. Subscribers to Industrial Info's Pipeline Project Database can learn more about the project by viewing the project reports for the Wyoming and Colorado portions.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Suncor reported second-quarter net earnings of C$1.88 billion (US$1.39 billion), compared with C$4.0 billion (US$2.97 billion) in second-quarter 2022. Industrial Info is tracking more than US$21.3 billion worth of active Suncor projects as the company strives to maintain its output and increase efficiencies across its upstream, midstream and downstream operations.
Suncor, the second-largest oil producer in Canada, reported that its upstream production increased 3% from the prior year to 741,900 barrels of oil equivalent per day. At its Mildred Lake oil sands mine near Fort McMurry, Alberta, Suncor is underway with a project to maintain production at the site, which is expected to be depleted in the near future. At the 7,500-ton-per-hour mining operation, Suncor is establishing two open-pit mines, MLX-West and MLX-East, to sustain bitumen production levels and extend the mine's life by 14 years.
Work on the MLX-West portion kicked off in 2021 and is expected to be completed in 2025. If this portion proves itself economically, Suncor will begin work on MLX-East, putting it on track for completion in 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project reports on MLX-West and MLX-East.
Other projects at Suncor's oil sands facilities include the addition of a natural gas-fired cogeneration unit at its Fort McMurry base. Three outdated coke-fired boilers will be replaced, and two gas-fired turbine generators will be installed. The project will lower operating costs as well as emissions, reducing sulfur-dioxide emissions by 45%, emissions of oxides of nitrogen by 15% and particulate matter by 66%, as well as requiring less water. The 800-megawatt unit will provide power to the 350,000-barrel-per-day (BBL/d) mining operation. Construction began in 2019 and is expected to wrap up toward the end of next year. Subscribers can click here for more details.
Suncor is making other moves to reduce operational expenses. In the just-passed quarter, Suncor took a C$275 million (US$204.1 million) restructuring charge related to its plan to cut 1,500 jobs this year. Suncor also is looking to new equipment to help save costs by deploying a fleet of autonomous vehicles at its three main Alberta sites, which is expected to not only reduce operational costs by US$1 billion, but also enhance safety. Subscribers can click here for more information.
Despite lifting its total upstream production by an average of more than 20,000 barrels oil equivalent per day, lower oil prices brought a year-over-year decline in Suncor's profit. The company also raised its refinery throughput to 394,400 BBL/d from 389,300 in the prior-year quarter. Next year, Suncor hopes to help maintain operational efficiencies at its Fort McMurry upgrader by replacing four delayed coker drums that were built in 1967 and are approaching the end of their operational life. The project will replace half of the eight drums. The remaining four delayed coker drums are set to be replaced in subsequent years. Subscribers to Industrial Info's Refining Project Database can learn more by viewing the reports on Phase I and Phase II of the project.
In its midstream segment, Suncor is gearing up to begin a project to increase flows on its Rocky Mountain Pipeline, which carries crude oil from Wyoming to a Suncor refinery in Colorado. Working in segments of 10-15 miles, Suncor will replace the 10-inch-diameter line with 16-inch pipe to transport up to 33,900 BBL/d of crude oil. Work is expected to begin later this year, putting the project on track for completion in 2024. Subscribers to Industrial Info's Pipeline Project Database can learn more about the project by viewing the project reports for the Wyoming and Colorado portions.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
