Blunting the peak –oil sands supply and peak oil
Mike AsharExecutive Vice PresidentSuncor Energy
Association for the Study of Peak Oil and GasDenver World Oil ConferenceNovember 10, 2005Denver, CO
2
Suncor Energy at a Glance Integrated energy company with more than
4,500 employees Crude oil production capacity of 260,000
barrels/day Refining capacity of 160,000 barrels/day Conventional natural gas Renewable energy
3
0
50
100
150
200
250
300
SaudiArabia
Canada Iran Iraq Kuwait Abu Dhabi Venezuela Russia
Billions of barrels of oil
Source: Oil & Gas Journal
Global Crude Reserves
4
5
Competitive advantage No exploration costs High recovery rates Competitive fiscal regimes Secure connection to
North American markets
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Projected Oil Sands ProductionMillions of barrels per day
Source:CAPP, RIWG, Alberta Chamber of Resources
0
1
2
3
4
5
2004 2006 2010 2015 2020 2030
5 million +
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Challenges Controlling operating costs Controlling capital costs Environmental impacts Connecting to consumers
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Operating Costs Industry average about US$20 for upgraded
product Constant cost pressure Natural gas a major cost risk Technology being used to drive down costs,
drive up energy efficiency
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Capital Costs US$35 billion planned in next five years Industry working together Huge scale Huge demands…materials, services,
infrastructure and workforce
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Environmental Issues Must manage impacts to air, land and water Technology – again – is key Progress is being made
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Connecting to Consumers Connected to more than 70 refining operations New pipeline extensions to provide new
markets Modifications to refinery capabilities
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Unparalleled Success
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Conclusion – Three C’s “Challenge” the conventional wisdom “Conserve” energy “Collaborate” on new ideas
Blunting the peak –oil sands supply and peak oil
Mike AsharExecutive Vice PresidentSuncor Energy
Association for the Study of Peak Oil and GasDenver World Oil ConferenceNovember 10, 2005Denver, CO
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