Suncor Energy Inc. · TSX:SU
Suncor Energy — Technical Presentation (April 2018)
24 slides from Suncor Energy's technical presentation, Apr 4, 2018
Slide 1: Oil sands technical teach-in
Oil sands technical teach-in April 4, 2018
Slide 2: Advisories and Forward-looking statements
2 Advisories and Forward-looking statements This presentation contains certain be identified by words such as approvals; the availability and cost of “forward-looking statements” within “planned”, “estimated”, “target”, “goal”, labour and services; changes in the meaning of the United States “illust
Slide 3: Oil Demand? How do oil sands fit in the picture?
3 Oil Demand? How do oil sands fit in the picture? Multiple credible sources have indicated oil demand growing through 2040 Oil use will continue beyond 2040 for lubricants, petrochemicals, long-distance travel and agriculture Oil sands expected to be part of the baseload supply in all scenarios Bas
Slide 4: Vast oil sands resource
4 Vast oil sands resource Canada has the third-largest potentially 3rd recoverable oil resource in the world Accounts for ~10% of world’s gross oil resource Billion barrels of oil sands that can be potentially 165 recovered economically with today’s technology Million barrels per day of oil sands pr
Slide 5: Oil sands
5 Oil sands Oil sands are a mixture of sand, water, clay and bitumen Bitumen is too viscous to be transported through pipeline without being diluted Oil sands reserves recoverable Oil sands reserves recoverable 20% through mining* 80% through in situ* < 200m deep, recovery factor ~100% > 200m deep,
Slide 6: Common oil sands extraction methods
6 Common oil sands extraction methods Steaming methods (in situ) Mining Cyclic Steam Stimulation (CSS) Steam Assisted Gravity Drainage (SAGD) High pressure steam injection into and Low pressure steam injection into upper well Oil sands shallow enough to mine production from a single well with produc
Slide 7: Oil sands - mining and extraction
7 Oil sands - mining and extraction 1 – Mining Oil sands scooped out of mine and deposited into 400 ton trucks Surge bin 2 – Ore preparation plant Bitumen-rich sand is ground in an ore preparation plant before being sent by pipeline to the primary extraction plant Rotary wet screen Crusher 3 & 4 – I
Slide 8: Advancing extraction technology
8 Advancing extraction technology Bitumen froth (NFT and PFT feedstock) is typically ~60% bitumen, ~30% water and ~10% fine solids Napthenic Froth Treatment (NFT) Paraffinic Froth Treatment (PFT) Solvents containing primarily naphthenic hydrocarbons Solvents containing primarily paraffinic hydrocarb
Slide 9: Oil sands – Upgrading
9 Oil sands – Upgrading The process of removing sediments and increasing the products hydrogen to carbon ratio Two Hydro-cracking – Addition of hydrogen in presence of catalyst (adding hydrogen) upgrading processes Thermal-cracking – Rejection of carbon (removing carbon) Thermal-cracking example Hea
Slide 10: Oil sands mining – a manufacturing business
10 Oil sands mining – a manufacturing business Oil sands mining - Not an exploration business, focused on continued system optimization and cost reduction Manufacturing - Optimal way of transforming material into goods by integration of people, capital, processes, systems and enterprises to deliver
Slide 11: SAGD extraction & process – Firebag example
11 SAGD extraction & process – Firebag example Central Processing Facility (CPF) Emulsion production Bitumen Well pad Bitumen & water separation Upgrader and/or Process water refinery Wells pad Steam injection Steam Treated water Water Wells pad generation treatment CPF CPF Steam to pads Emulsion to
Slide 12: SAGD – cost reduction history and enhanced future designs
12 SAGD – cost reduction history and enhanced future designs Structural cost reductions Next generation well pad design New Central Processing Facility As the extraction technique matures, continuous optimization of the SAGD Simplified sustaining well pad design currently Complete redesign of CPF fo
Slide 13: Market access for oil sands production
13 Market access for oil sands production Pipeline Current and forecasted gross pipeline capacity1 Feeder lines Rail ~750 TMPL 300 mbpd capacity1 Fort McMurray TMEP (Proposed) Edmonton +590 mbpd capacity2 Express, Platte and Rocky Hardisty Regina Mountain Vancouver 280 mbpd capacity1 TransCanada Key
Slide 14: Oil sands bitumen production
14 Western Canadian L/H1 differential WTI-WCS differential a factor of both quality and location Royalty paid on bitumen Exposure Exposure production mitigated unmitigated Upgrading Sweet Influenced by Hardisty Oil sands bitumen production Sour heavy pricing In Situ (CSS & SAGD) Refining Shipped by
Slide 15: Typical attributes of North American oil plays
15 Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual funds flow profiles2 capital rate costs cost risk factor Mining High Very low Low Medium Very low Very high SAGD Medium Low Low Low Low High Offshore High Medium Medium Very
Slide 16: The next phase of oil sands value drivers
16 The next phase of oil sands value drivers Fort Hills Joslyn P Syncrude Synergies Capturing regional synergies through C Firebag In Situ MacKay River Syncrude In Situ C U Base Mine optimizing current infrastructure Fort McMurray Sustainability Cost and carbon Mining & Upgrading competitiveness Fur
Slide 17: Regional synergies for existing assets – Suncor example
17 Regional synergies for existing assets – Suncor example 100% WI Fort Joint ownership Hills Regional synergy opportunities1 P Upgrader feedstock optionality Syncrude Turnaround planning optimization Joslyn C Unplanned outage impact mitigations Firebag In Situ Process and technology sharing MacKay
Slide 18: Oil sands mining – overcoming challenges
18 Oil sands mining – overcoming challenges 1960 1967 GCOS (Suncor) Beginning of oil sands mining in the 70s & 80s First oil sands mine production • Unclear industry would survive • Draglines & Bucket wheels adapted from mining industry • Oil sands a very erosive material, mechanical availability at
Slide 19: In situ – beginning of the technology wave
19 In situ – beginning of the technology wave1 Only 15 years of commercial SAGD Technology is the future of SAGD 1980 1984 SAGD process pilot at Increasing extraction temperature MacKay River UTF (underground test facility) 1990 AOSTRA 2000 2000 First solvent pilots 2002 First commercial SAGD oil 20
Slide 20: Next generation in situ extraction
20 Next generation in situ extraction Nsolv - Vaporized solvent gravity drainage EASE - Electromagnetically Assisted Solvent Extraction • Vaporized solvent injected (injector well), heating and mobilizing bitumen • Electrical energy converted to radio frequency energy at surface • Bitumen-solvent mi
Slide 21: Industry collaboration and innovation
21 Industry collaboration and innovation Suncor Energy Inc. Syncrude Nexen Canada Ltd. Alliance of 10 producers representing >90% of oil Imperial Oil 936 distinct technologies Teck Resources sands production Limited developed Focused on accelerating the Devon pace of improvement in environmental per
Slide 22: The oil sands advantage
22 The oil sands advantage • Long-life, low-decline resource • Low operating and sustaining costs • Increasingly carbon competitive • Socially responsible • Track record of innovation
Slide 23: Slide Notes
23 Slide Notes Slide 12------------------------------------------------------------- Slide 19------------------------------------------------------------- (1) Expected benefits based on design specifications. (1) Represents possible future opportunities currently Actual performance may differ materi
Slide 24: Investor Relations contacts
Investor Relations contacts Steve Douglas David Burdziuk Valerie Roberts Ever Motis Vice President IR Director IR Senior Analyst IR Associate IR sdouglas@suncor.com dburdziuk@suncor.com vroberts@suncor.com emotis@suncor.com Visit us at the Investor Centre on suncor.com 1-800-558-9071 invest@suncor.c