Suncor Strategy and Operations

Located in northeast Alberta, our oil sands business is the bread and butter of our current operations and cornerstone for growth, with vast resources of 6.1 billion barrels of reserves and 17.8 billion barrels of contingent resources.*

Our oil sands operations recover bitumen through mining and in situ development and upgrade it into refinery feedstock, diesel fuel and by-products. What makes Suncor unique is the combination of our long-term growth strategy and our commitment to responsible development. While we continue to expand our operations, we work to minimize our environmental footprint and contribute to the well-being of the communities in which we operate.

We support our core oil sands business with conventional natural gas production which offsets energy consumption at our oil sands operations, and international and offshore assets that we anticipate will provide stable, low-cost cash flow to fund future oil sands growth.

In addition, we own and operate four refineries (with a combined capacity of 455,000 barrels per day) a lubricants plant, and a large network of retail businesses (1,500+) which connect our core oil sands business with a growing North American energy market.

Our investments in renewable wind energy and biofuel play a key part of Suncor's climate change action plan. In 2010, Suncor marked an industry milestone by becoming the first oil sands company to complete surface reclamation of a tailings pond, a key step in returning the site back to nature. The company also received approval to implement new tailings management technology — called TROTM — across its existing operations. We expect to invest more than $1 billion to implement the technology, potentially reducing tailings reclamation time by decades and speeding the return of oil sands mining sites to natural habitat.

For more information, please contact Suncor Energy’s Investor Relations team:

* Reserves and contingent resource information presented herein is presented as Suncor’s working interest (operating and non-operating) before deduction of royalties, and without including any royalty interests of Suncor, and is as at Dec. 31, 2010. For more information please see Suncor’s current Annual Information Form dated March 3, 2011 available at Effective Dec. 31, 2010, Suncor’s best estimates of contingent resources for its mining and in situ operations in Alberta are set out in the table below.

Best Estimate Contingent Resources as at December 31, 2010(1)(2)(3)






Canadian Mining Operations (Alberta)

6 050

Canadian In Situ Operations (Alberta)

6 412

5 291

Total Canada

12 462

5 291

Total Best Estimate Contingent Resources

12 462

5 291

  1. Numbers in the above table are rounded to the nearest million barrels (MMbbls) and may not add due to rounding.
  2. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is no certainty that it will be commercially viable to produce any part of the contingent resources.
  3. Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. The best estimate of potentially recoverable volumes is generally prepared independent of the risks associated with achieving commercial production.

Estimates of contingent resources have not been adjusted for risk based on the chance of development. There is no certainty as to the timing of such development. The economic viability of the contingent resources is dependent upon pricing and economic conditions. There is no certainty that all or any portion of the contingent resources will be commercially viable to produce. For movement of resources to reserves categories, all projects must have an economic depletion plan and may require, among other things: (i) additional delineation drilling and/or new technology for unrisked contingent resources; (ii) regulatory approvals; and (iii) company approvals to proceed with development. Significant factors which may change the contingent resource estimates include further delineation drilling, which could change the estimates either positively or negatively, and future technology improvements, which would positively affect the estimates. Also, we have assumed that all mining and some in situ contingent resources will be upgraded and sold as sweet crude oil (SCO). To the extent that these volumes are not upgraded, but rather sold as bitumen, contingent resources volumes reported would be lower for SCO and higher for bitumen and total contingent resource volumes would be higher because of the yield factor applied to bitumen volumes when upgraded into SCO.

The contingencies which currently prevent the classification of the contingent resources as reserves include: the need for higher density corehole drilling to improve the certainty of in situ resources; the need for further facility design and the associated uncertainty in development costs and timelines; the preparation of firm development plans and regulatory applications (including associated reservoir studies and delineation drilling); regulatory approvals; and corporate approvals to proceed with development.

The additional facility design work, development plans, reservoir studies and delineation drilling are often completed in the course of preparing the company’s application for regulatory approvals. Once all regulatory and corporate approvals are received and any other contingencies are removed, the resources may then be reclassified as reserves.

Certain statements contained on this website, including those contained in webcasts and investor presentations, constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward looking statements”). All forward looking statements are based on the company’s current expectations, estimates, projections, beliefs and assumptions based on information available at the time the statement was made and in light of the company’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserve and resource estimates; commodity prices and interest and foreign exchange rates; capital efficiencies and cost-savings; applicable royalty rates and tax laws; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory and third party approvals.

Some of the forward looking statements may be identified by words like “expects”, “anticipates”, “estimates”, “plans”, “scheduled”, “intends”, “may”, “believes”, “projects”, “indicates”, “could”, “focus”, “vision”, “goal”, “proposed”, “target”, “objective”, “continue” and similar expressions. Forward looking statements include references to: business strategies and goals, including our plan to expand our oil sands production capacity by 10 to 12% per year until 2020 and continuing to develop renewable energy sources; future investment decisions, including our expectation to invest more than $1 billion to implement our new TROTM technology; future capital, exploration and other expenditures; future cash flows; future resource purchases and sales; anticipated construction and repair activities; anticipated turnarounds at upgraders, refineries and other facilities; anticipated refining margins; future oil and natural gas production levels, including anticipated field lives, and the sources of their growth; project development and expansion schedules and results; future exploration activities and results, and dates by which certain areas may be developed or come on-stream; anticipated retail throughputs; anticipated pre-production and operating costs; reserves and resources estimates; future royalties and taxes payable; production life-of-field estimates; natural gas export capacity; future financing and capital activities; contingent liabilities; the impact and cost of compliance with existing and potential environmental regulations; future regulatory approvals; and expected rates of return. Forward looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Our actual results may differ materially from those expressed or implied by our forward looking statements, and readers are cautioned not to place undue reliance on them.

Suncor’s most recently filed Earnings Release, Quarterly Report and Management’s Discussion & Analysis and its most recently filed Annual Information Form/Form 40-F, Annual Report to Shareholders and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3Y7, by calling 1 (800) 558-9071, by email request or by referring to the company’s profile on SEDAR or EDGAR. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.