PetroCanada/Suncor

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Type Public Limited Company
Traded as TMX:SU NYSE:SU
Founded 1919
Headquarters Calgary, Alberta
Key people John T. Ferguson (Chairman of the Board), Richard L. George (CEO)
Revenue CAD $39.33 billion (approx. US $39.88 billion), 2011.[1]
Net Income CAD $4.3 billion billion (approx. US $4.36 billion), 2011.[2]
% change on previous year +12.4%
Total assets CAD $74.78 billion (approx. US$75.83 billion), 2011.[3]
Employees 13,026 (end 2011)[4]
Website www.suncor.com

Global Snapshot

Suncor Energy became Canada's largest oil company and "flagship Canadian corporation", as described by Suncor's president and CEO Rick George, following a merger with Petro-Canada in 2009. As a result of the arrangement, Petro-Canada investors would receive a 40 percent share of the entity and Suncor shareholders would own the remaining 60 percent of the new firm. Management hoped that as a result of the move, the combination would become a more efficient player and would insulate both from potential foreign takeovers.[5]

Suncor has had a track record as an oil sands pioneer since the 1960s, when the Great Canadian Oil Sands project was established in Fort McMurray.[6] The company is one of Canada's largest oil sands producers, and Suncor was pumping out 228,000 barrels of oil per day (bpd) from properties in Alberta in 2009.[7]

Oil sands aside Suncor Energy, together with is subsidiaries, is involved in the acquisition, exploration, development, production and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products, primarily in Canada. The company's international and offshore segment is active in offshore Newfoundland and Labrador, in the North Sea, as well as in Libya and Syria.[8]

Company Report Highlights

Suncor Energy's Annual Report for 2010 reported that net income for 2010 had risen an impressive 211% on 2009 figures, reaching a level of $3.571 billion CAD and surpassing results for the previous four years. Production figures for oil sands 2009-2010 remained steady, however the production level for Natural Gas/International and Offshore operations saw a rise of 98.86% to 296.9 thousand barrels of oil equivalent (boe) per day.

2010 marked a pivotal year for Suncor, in that the successful merger with Petro-Canada was implemented and the companies began to realize the resulting synergies and savings. The company also launched a new decade-long growth plan, expected to boost total production to more than 1 million boe per day by 2020.[9]

The Second Quarter results released for 2011 revealed that the Exploration and Production business segment contributed 182,700 boe per day of production over this period, compared to 299,500 boe per day over the same period of 2010. This decrease primarily reflected the divestiture of non-core assets, the shut-in of production in Libya and operational issues at Terra Nova and Buzzard. This did not appear to impact significantly on the bottom line however, as Second Quarter net earnings were $562 million CAD, compared to $540 million CAD in the Second Quarter of 2010.[10]

Global Snapshot

EITI Supporter Status

Suncor is not a supporter company of the EITI. The company commented, as part of a Sustainability Assessment, that 'Suncor supports public accountability by governments and the transparency of revenues as a means to promoting political and economic stability in the regions in which we operate. We acknowledge the work that the Extractive Industries Transparency Initiative does in this regard and, while we have not formally endorsed the initiative, if requested, we will support host countries seeking to implement greater transparency'.[11]

UN Global Compact

Suncor Energy has been a participant in the UN Global Compact since 2001.[12]

CSR Review

Suncor's Sustainability Report claims that the company continues to remain true to their long-standing vision of a 'triple bottom line' ie. the management of the business in ways that enhance social and economic benefits, while striving the minimize the environmental impacts associated with energy development. Suncor's Report on Sustainability 2011[13] highlights the following milestones:

  • The frequency of employee lost time injuries and recordable injuries continued to decline as employees and contractors embraced their Journey to Zero safety culture.
  • Suncor continued to implement a new tailings management approach that is expected to dramatically accelerate the reclamation of tailings ponds and mined lands and reduce the need for future tailings ponds. They also became the first oil sands company to achieve surface reclamation of a decommissioned tailings pond.
  • Suncor achieved a greenhouse gas (GHG) emissions intensity reduction at its Refining and Marketing operations. They also continued to actively participate in public policy and stakeholder discussions on energy and the environment, in particular advancing proposals for a national energy strategy for Canada.
  • Suncor continued to invest in the regions where they operate by supporting community, educational and environmental programs as well as the charitable giving and volunteer efforts of employees and retirees. Many programs were aimed at advancing opportunities for aboriginal peoples through education, training and cultural awareness initiatives.
  • As part of the Oil Sands Leadership Initiative (OSLI), Suncor worked closely with four like-minded companies to make tangible improvements to environmental, social and economic performance in the oil sands industry. In 2010, OSLI investigated new technologies to improve industry-wide reuse of tailings wastewater and to make oil recovery more energy-efficient.

External Coverage

  • In 2009 Suncor was fined a combined $850,000 in two separate environmental cases. The first penalty was $675,000 for failing to install pollution control equipment at its Firebag facility near Fort McMurray and failing to tell Alberta Environment about it. The company was also fined $175,000 in connection with the dumping of undertreated wastewater from a company-owned work camp near Fort McMurray into the Athabasca River.[14]

Global Operations by Country

Libya

Main article: PetroCanada/Suncor Operations in Libya

Syria

Main article: PetroCanada/Suncor Operations in Syria

References

  1. 2011 Annual Report”. Suncor Energy, 2012.
  2. 2011 Annual Report”. Suncor Energy, 2012.
  3. 2011 Annual Report”. Suncor Energy, 2012.
  4. 2011 Annual Report”. Suncor Energy, 2012.
  5. Suncor, Petro-Canada announce merger”. CBC News, 23 March 2009.
  6. History”. Suncor, retrieved 11 October 2011.
  7. Suncor, Petro-Canada announce merger”. CBC News, 23 March 2009.
  8. Suncor Energy Inc.”. Yahoo Finance, retrieved 11 October 2011.
  9. 2011 Annual Report”. Suncor Energy, retrieved 11 October 2011.
  10. 2011 Suncor Energy reports 2011 second quarter results”. Suncor Energy, 28 July 2011.
  11. Suncore Energy Inc”. SAM Research Corporate Sustainability Assessment Questionnaire, retrieved 11 October 2011.
  12. Participant Information: Suncore Energy Inc”. UN Global Compact, retrieved 11 October 2011.
  13. 2011 Summary Report on Sustainability”. Suncor Energy, retrieved 11 October 2011.
  14. Suncor fined $850,000 for environmental violations”. CBC News, 2 April 2009.