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Released February 17, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Suncor Energy Incorporated (NYSE:SU) (Calgary, Alberta) enjoyed record bitumen production in 2022, driven in part by strong demand for synthetic crude oil (SCO), helping to offset the effects of softening commodity prices late in the year. The results followed completion of significant turnaround activities at Suncor's Oil Sands Base plant and Syncrude upgraders in Alberta, leading to 480,000 barrels per day (BBL/d) of SCO produced in 2022, the second-highest in the company's history. Industrial Info is tracking more than US$16 billion worth of active projects from Suncor.
Click on the image at right for a graph detailing Suncor's active projects, by project type.
Suncor expects 2023 capital expenditures to total between C$5.4 million and C$5.8 million (US$4.02 million and US$4.32 million), about 45% of which will go toward upstream projects. Suncor expects to focus its 2023 capital spending on "high-return projects and investments that are expected to enhance value within the company's existing assets base and accelerate the company's progress toward its net-zero [greenhouse-gas] objective," according to a quarterly earnings-related press release.
Among Suncor's capital-spending priorities in 2023 is the replacement of coke-fired boilers with a US$1.06 billion cogeneration facility at its Oil Sands Base in Fort McMurray, Alberta, which began construction in late 2019 and is expected to be in service in fourth-quarter 2024. Suncor expects the 800-megawatt (MW) natural gas-fired, combined-cycle (NGCC) cogeneration unit to substantially reduce carbon output at the 350,000-BBL/d bitumen-mining operation, furthering its net-zero objective. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Suncor's Fort McMurray properties also are undergoing a US$349.7 million truck fleet addition, which will add 150 autonomous heavy-hauler trucks to its Base, North Steepbank and Fort Hills facilities over a six-year period. The project is set to be completed in the spring of 2024. Subscribers can learn more from a detailed project report.
Suncor also is proposing the Base Mine Extension project to sustain its supply of bitumen to its Oil Sands Base, once resources in the existing mines are depleted in 2030. Still in its early permitting phase, where plenty of factors could change, delay or eliminate any proposed investment, the project would involve constructing a 225,000-BBL/d open-pit mine with a 25-year life. Subscribers can learn more from a detailed project report.
"Our baseline end-of-mine-life is in the mid-2030s, so we're working through various options for replacement of that bitumen supply," said Kris Smith, the chief executive officer of Suncor, in a quarterly earnings-related conference call. "We do have the Base mine-extension application in place. We're continuing with that application, but it is not our only alternative or option."
Other capital-spending priorities include the US$1.5 billion Mildred Lake West Extension project, north of Fort McMurray, which began in early 2021 and is expected to be brought online in mid-to-late 2025. The company is developing another open-pit mining area at its existing, 7,500-ton-per-hour Mildred Lake North complex, where reserves are set to be depleted by the end of 2023. Mildred Lake West is expected to sustain bitumen production levels and extend the mine's life by 14 years. Subscribers can learn more from Industrial Info's project report.
If economic conditions are favorable, Suncor hopes to continue with the proposed US$1.4 billion Mildred Lake East Extension to sustain bitumen levels further. Subscribers can learn more from Industrial Info's project report.
Suncor also holds a 38.6% stake in Cenovus Energy Incorporated's (NYSE:CVE) (Calgary) US$3.2 billion West White Rose offshore drilling project in the Atlantic, which is expected to see its first oil produced in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) to produce 52,500 BBL/d, with a daily peak of 75,000 BBL/d. Subscribers can learn more from a detailed project report.
For full-year 2022, Suncor reported net earnings of C$9.08 billion (US$6.76 billion), more than double the C$4.12 billion (US$3.07 billion) for 2021. The company attributed much of the growth from stronger output at its Oil Sands assets, and stronger crude oil prices throughout most of the year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Suncor.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Suncor's active projects, by project type.Suncor expects 2023 capital expenditures to total between C$5.4 million and C$5.8 million (US$4.02 million and US$4.32 million), about 45% of which will go toward upstream projects. Suncor expects to focus its 2023 capital spending on "high-return projects and investments that are expected to enhance value within the company's existing assets base and accelerate the company's progress toward its net-zero [greenhouse-gas] objective," according to a quarterly earnings-related press release.
Among Suncor's capital-spending priorities in 2023 is the replacement of coke-fired boilers with a US$1.06 billion cogeneration facility at its Oil Sands Base in Fort McMurray, Alberta, which began construction in late 2019 and is expected to be in service in fourth-quarter 2024. Suncor expects the 800-megawatt (MW) natural gas-fired, combined-cycle (NGCC) cogeneration unit to substantially reduce carbon output at the 350,000-BBL/d bitumen-mining operation, furthering its net-zero objective. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
Suncor's Fort McMurray properties also are undergoing a US$349.7 million truck fleet addition, which will add 150 autonomous heavy-hauler trucks to its Base, North Steepbank and Fort Hills facilities over a six-year period. The project is set to be completed in the spring of 2024. Subscribers can learn more from a detailed project report.
Suncor also is proposing the Base Mine Extension project to sustain its supply of bitumen to its Oil Sands Base, once resources in the existing mines are depleted in 2030. Still in its early permitting phase, where plenty of factors could change, delay or eliminate any proposed investment, the project would involve constructing a 225,000-BBL/d open-pit mine with a 25-year life. Subscribers can learn more from a detailed project report.
"Our baseline end-of-mine-life is in the mid-2030s, so we're working through various options for replacement of that bitumen supply," said Kris Smith, the chief executive officer of Suncor, in a quarterly earnings-related conference call. "We do have the Base mine-extension application in place. We're continuing with that application, but it is not our only alternative or option."
Other capital-spending priorities include the US$1.5 billion Mildred Lake West Extension project, north of Fort McMurray, which began in early 2021 and is expected to be brought online in mid-to-late 2025. The company is developing another open-pit mining area at its existing, 7,500-ton-per-hour Mildred Lake North complex, where reserves are set to be depleted by the end of 2023. Mildred Lake West is expected to sustain bitumen production levels and extend the mine's life by 14 years. Subscribers can learn more from Industrial Info's project report.
If economic conditions are favorable, Suncor hopes to continue with the proposed US$1.4 billion Mildred Lake East Extension to sustain bitumen levels further. Subscribers can learn more from Industrial Info's project report.
Suncor also holds a 38.6% stake in Cenovus Energy Incorporated's (NYSE:CVE) (Calgary) US$3.2 billion West White Rose offshore drilling project in the Atlantic, which is expected to see its first oil produced in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) to produce 52,500 BBL/d, with a daily peak of 75,000 BBL/d. Subscribers can learn more from a detailed project report.
For full-year 2022, Suncor reported net earnings of C$9.08 billion (US$6.76 billion), more than double the C$4.12 billion (US$3.07 billion) for 2021. The company attributed much of the growth from stronger output at its Oil Sands assets, and stronger crude oil prices throughout most of the year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Suncor.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
