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Suncor's Energy Development Opportunities

The document discusses three opportunities for Suncor: 1) Developing alternative energy sources such as wind, ethanol, biofuels, and solar energy to diversify their product portfolio. 2) Increasing their investment in natural gas as demand is rising in North America and liquefied natural gas exports are expected to increase. 3) Focusing on improving in-situ production methods for extracting bitumen from oil sands as most are too deep for traditional mining, in order to reduce costs and environmental impact while increasing supply.

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10 views1 page

Suncor's Energy Development Opportunities

The document discusses three opportunities for Suncor: 1) Developing alternative energy sources such as wind, ethanol, biofuels, and solar energy to diversify their product portfolio. 2) Increasing their investment in natural gas as demand is rising in North America and liquefied natural gas exports are expected to increase. 3) Focusing on improving in-situ production methods for extracting bitumen from oil sands as most are too deep for traditional mining, in order to reduce costs and environmental impact while increasing supply.

Uploaded by

Alen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Opportunities

1. Development of alternate energy sources


Unconventional energy resources such as oil sands, wind energy, and ethanol are the main
areas where Suncor should work more as conventional energy resources i.e. oil and gas
reserves are depleting and there is a substantial need for developing energy resources
alternative to oil and gas. Though Suncor has worked on developing wind energy resources and
using ethanol as an alternative fuel but still there is scope of expansion in these areas within
North America as so far Suncor has only developed six wind facilities within Canada. Similarly,
ethanol usage as fuel is also in initial development stage and needs to be focused. Another
similar area of interest could be development of bio fuel and its applications such as bio diesel
and bio mass. Moreover, solar energy can also be explored. These alternate energy resources
will complement Sucors oil sands business. They will diversify existing product portfolio and
also add new source of revenue for Suncor.

2. Increasing demand for Natural Gas in Canada


Natural gas is considered to be the most important energy source for the future in Canada
owing to its abundance, cheapness along with multiple applications and environmental
soundness. Consumption of natural gas has already increased in North America due to its
usage in electric power sector and industrial sector. Moreover, its production is expected to rise
in response to forecasted price increases and increases in liquefied natural gas (LNG) exports
which makes it a very realistic opportunity for Suncor to invest further.

3. Oil sands segment


Oil sands area is considered to be Suncors core business. More than 80% of the Canadas oil
sands are very deep which makes it almost impossible to use traditional mining techniques.
Hence in-situ production technique needs to be deployed. As currently available in-situ methods
are not cost effective, therefore, Suncor focus should be in developing better in-situ production
methodologies that can reduce its production cost and ultimately increase bitumen supply to the
market while reducing costs and an impact on the environment. If Suncor can develop such
technologies, it will help them reduce their operational cost and hence increase net profit. It will
make them very competitive even in current market conditions. Currently, Suncor has in-situ
operations in following two areas.
I. MacKay River
II. Firebag

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