Company:Suncor Energy

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Short description: Canadian energy company
Suncor Energy Inc.
TypePublic
IndustryOil and gas
PredecessorSun Oil Company, Great Canadian Oil Sands
Founded22 August 1979 (1979-08-22)
HeadquartersCalgary, Alberta, Canada
Key people
Michael Wilson, (Chairman of the Board)
ProductsPetroleum, natural gas, petrochemicals and others
RevenueIncrease $41.133 billion CAN (2021)[1]
Increase 4.119 billion CAN (2021)[1]
Total assetsCAN$83.739 billion (2021)[2]
Total equityCAN $36.614 billion (2021)[2]
Number of employees
16,922 (2021)[3]
Websitesuncor.com

Suncor Energy (French: Suncor Énergie) is a Canadian integrated energy company based in Calgary, Alberta. It specializes in production of synthetic crude from oil sands. In the 2020 Forbes Global 2000, Suncor Energy was ranked as the 48th-largest public company in the world.[4]

Suncor was created by Sun Oil in 1979 by the merger of its Canadian conventional and heavy oil companies, the Sun Oil Company and Great Canadian Oil Sands. Until 2010, Suncor marketed products and services to retail customers in Ontario through a downstream network of 780 company-owned, and 700 customer-operated retail and Diesel fuel sites, primarily in Ontario under the Sunoco brand (owing to Suncor having originally been established as a subsidiary of Sunoco). In 2009, Suncor acquired the former Crown corporation Petro-Canada, which replaced the Sunoco brand across its existing outlets. Suncor also markets through a retail network of Shell and ExxonMobil branded outlets in the United States.[5]

Predecessor companies

Sun Company of Canada

The Sun Oil Company began operations in Canada in 1919 when it formed the Sun Company of Canada. The company opened offices in Montreal and began importing American products to Canada for sale. On 31 March 1923, Sun incorporated a Canadian subsidiary, the Sun Oil Company Limited. In 1932, the company transferred its headquarters from Montreal to Toronto. In 1950 the Sun Oil Company drilled its first successful Canadian oil well in Alberta. In 1953 it opened a new refinery in Sarnia.

Great Canadian Oil Sands

Great Canadian Oil Sands was incorporated on 29 December 1953, however, the company originated in several previous ventures dating back to 1920. In 1962, GCOS received a permit from the Government of Alberta to build a plant in the Athabasca Oil Sands. The following year, Sun purchased a majority stake in GCOS. The GCOS plant went online in 1967.

History

In 1979, Sun formed Suncor by merging its Canadian refining and retailing interests; Great Canadian Oil Sands (a majority-owned subsidiary, which constructed and operated the first commercial plant to develop Canada's Athabasca oil sands and went on production in 1967); and its conventional oil and gas interests. In 1981, the Government of Ontario purchased a 25% stake in the company; it divested in 1993.[6] In 1995 Sun Oil also divested its interest in the company, although Suncor maintained the Sunoco retail brand in Canada. With these two divestitures, Suncor become an independent, widely held public company.

In 2003, Suncor acquired a refinery and associated Phillips 66 gas stations in Commerce City, Colorado from ConocoPhillips.[7] In 2005, Suncor acquired a second Commerce City refinery from Valero Energy.[8] Suncor moved its retail brand from Phillips 66 to Shell from 2009 to 2013.[9] Suncor added the Exxon and Mobil brands in Colorado and Wyoming in 2015.[10]

On March 23, 2009, Suncor announced its intent to acquire Petro-Canada.[11][12] This merger created a company with a combined market capitalization of C$43.3 billion. On June 4, 2009, a 98% approval rate was reached by Suncor's shareholders for the acquisition of Petro-Canada and the Competition Bureau approved the merger on June 21, 2009.[13][14] The merger with Canada's 11th largest company was completed on August 1, 2009[15] in a $21 billion deal to form the second-largest company in Canada (after Royal Bank of Canada) in terms of market capitalization. In December 2009, as a condition of the merger, Suncor sold 98 gas stations in Ontario to Husky Energy, consisting of 68 Sunoco-branded locations and 30 Petro-Canada-branded locations.[16]

In 2015 Suncor courted Canadian Oil Sands, the largest owner of the Syncrude project with 37% ownership (compared with Suncor's 12%), with proposals for acquisition and hostile takeover.[17] In January 2016 they reached an agreement with Suncor acquiring COS for C$6.6 billion, raising its Syncrude ownership to 49%.[18]

On April 27, 2016, Suncor announced that it had reached a $937-million deal to acquire Murphy Oil's 5% stake in the Syncrude project, growing its interest in Syncrude to nearly 54%, making it the majority shareholder of the project.[19] In fall 2021, Suncor assumed operatorship of the Syncrude Joint Venture oil sands project in a bid to improve its performance. Suncor holds a majority stake in Syncrude with 58.74 per cent.[20]

In July 2022, president and CEO Mark Little resigned amid investor pressure and after a series of workplace deaths and safety incidents.[21] Executive vice-president for downstream Kris Smith was named as interim CEO.[22] On February 21, 2023, Suncor announced that former Imperial Oil Ltd. president and CEO Rich Kruger had been named its new chief executive officer after a months-long search.[23] Kruger replaced interim Suncor CEO Kris Smith on April 3, 2023.[24] Smith assumed the role of chief financial officer and executive vice-president of corporate development after Suncor's annual general meeting on May 9, 2023.[25]

June 2023 transactions with customers and suppliers were impaired due to a cyber attack. The company stated no customer information was stolen[26] but some of the companies services, such as digital payment, crashed.[27]

In October 2023, Suncor Energy acquired TotalEnergies' Canadian operations for C$1.47 billion($1.07 billion).[28]

Operations

In North America, Suncor develops and produces oil and natural gas in Western Canada, Colorado, and offshore drilling in eastern Canada. Its international efforts include offshore developments in the North Sea, and conventional, land-based efforts in Libya, Syria, and Trinidad and Tobago.

Suncor operates refineries in Edmonton, Alberta; Sarnia, Ontario; Montreal, Quebec and Commerce City, Colorado. These refineries supply industrial, retail and commercial consumers. The company is also one of the largest Canadian retailers of petroleum products.[29]:22

Bitumen, oil and natural gas production

Suncor is the world's largest producer of bitumen, and owns and operates an oil sands upgrading plant near Fort McMurray, Alberta, Canada. Originally developed by Great Canadian Oil Sands, a majority-owned subsidiary of Sun Oil, it is now wholly owned by the independent Suncor. It was the first commercial development on the Athabasca oil sands, although small, earlier projects like that at Bitumount also played a role in development. The company held a 36.75% interest in the Joslyn north oil sands project which was shelved pending an economic review by operator Total S.A. in May 2014. The Joslyn project was sold to CNRL in September 2018.[30] The company also produces conventional oil, heavy crude oil, and natural gas.[29]:22

Refining

Suncor Energy's refinery in Commerce City, Colorado.

In Canada, Suncor operates refineries in Alberta, Ontario and Quebec. The company's 135,000-barrel-per-day Strathcona, refinery runs entirely on oil sands-based feedstocks and produces a high-yield of light oils. A 137,000-barrel-per-day Montreal Refinery produces gasoline, distillates, asphalts, heavy fuel oil, petrochemicals, solvents and feedstock for lubricants. An 85,000-barrel-per-day refinery in Sarnia, Ontario produces gasoline, kerosene, jet and diesel fuels. A 98,000-barrel-per-day refinery in Commerce City, Colorado produces gasoline, diesel fuel and paving-grade asphalt.[29]:22

Retail

Suncor's main downstream brand in Canada is Petro-Canada. Suncor previously operated and franchised retail locations under the Sunoco brand, but post-acquisition, nearly all remaining Sunoco stations were converted to Petro-Canada. In addition, the company terminated all of its independent Sunoco franchises, as it planned to implement Petro-Canada's model of requiring franchisees to operate multiple locations. Presently, at least one Sunoco branded station exists, and is located in Port Colborne, Ontario. A group of affected franchisees filed a class-action lawsuit over the matter, claiming that Suncor had violated Ontario's Arthur Wishart Act. However, the case was blocked by an Ontario court.[31][32]

In the United States, it operates retail outlets in Colorado under the Shell and Phillips 66 brands.[33]

On April 13, 2012, Suncor paid a $500,000 fine after being found guilty of price-fixing in Ontario.[34]

Aircraft fleet

One of Suncor's Bombardier CRJs in 2008

Suncor Energy owned and operated three Bombardier CRJ900ER aircraft[35] but sold them in late 2016 and now uses Westjet to shuttle Suncor employees to the oilsands.[36]

As of February 2023, Suncor Energy owns a Bombardier Global Express (BD-700) and operate as ICAO airline designator JSN, and telephony JETSUN.[37][38]

Environmental record

According to a Pollution Watch fact sheet, in 2007 Suncor Energy's oil sands operations had the sixth highest greenhouse gas emissions in Canada.[39][40] While Suncor has reduced the greenhouse gas emissions intensity of its oil sands operations by more than 50% since 1990, total greenhouse gas emissions from the company's operations have increased because of growing oil sands production.

On April 2, 2009, Suncor was fined $675,000 for failing to install pollution control equipment at its Firebag operation near Fort McMurray, Alberta in July 2006. On the same day, Suncor was fined $175,000[41] for dumping untreated wastewater from a company work camp near Fort McMurray into the Athabasca River in 2007.[42][43]

In the United States, Suncor has also been fined by the Colorado Department of Public Health and Environment. In April 2012, a fine of $2.2 million was assessed for air pollution. Suncor failed to monitor and control emissions a number of times throughout 2009 and 2010, and numerous emissions exceeded regulations.[44] Suncor was also cited for "failure to conduct equipment inspections, train employees, and fully develop standard procedures for operating equipment".[45] Additionally, a benzene leak into Sand Creek was discovered in the fall of 2011. Employees at Suncor and the nearby Metro Wastewater Reclamation District Plant were exposed to benzene through the air and through drinking water.[46][47] In April 2018, Suncor and ExxonMobil were sued by the city and county of Boulder, and the county of San Miguel over allegations that they were responsible for climate change in the state. The lawsuit was unique as it was one of the first to be based on these effects on a landlocked area, as opposed to those citing Sea level rise as a factor.[48] In 2020, Suncor reached a US$9 million settlement agreement with authorities in Colorado for more than 100 air pollution violations from its Commerce City refinery.[49]

By 2009, Suncor was working to reduce the amount of bitumen entering tailings ponds. In 2009, under the auspices of the Natural Sciences and Engineering Research Council of Canada (NSERC), Suncor teamed with the University of Alberta and Matrikon, an Edmonton-based software company, to develop separation-cell technology to potentially reduce the amount of bitumen entering tailings ponds by 50 per cent.[50]

By 2009, Suncor operated four wind farms. These wind farms provided 147 megawatts of power, providing an annual CO
2 offset of 284,000 tonnes compared to coal-generated electricity.[citation needed][when?] Suncor operates an ethanol facility in St. Clair Township, Ontario. The facility is the largest corn ethanol producer in Canada.

Governance

Chairman of the Board President

Michael M. Koerner, 1982–1984
William R. Loar, 1984–1986
Michael M. Koerner, 1986–1990
Thomas H. Thomson, 1990–1993
Richard L. George, 1993–1994
Robert H. Campbell, 1994–1995
W. Robert Wyman, 1995–2001
James R. Shaw, 2001–2007
John T. Ferguson, 2007–2014
James W. Simpson, 2014–2017
Michael M. Wilson, 2017–

Ross A. Hennigar, 1979–1983 †
William R. Loar, 1983–1985
Thomas H. Thomson, 1985–1991
Richard L. George, 1991–2012
Steven W. Williams, 2012–2018
Mark S. Little, 2018–2022
Kristopher P. Smith (interim), 2022–2023
Richard M. Kruger, 2023–

† Hennigar was killed in a plane crash on 11 January 1983

See also

  • History of the petroleum industry in Canada (oil sands and heavy oil)
  • History of the petroleum industry in Canada
  • Syncrude
  • Canadian petroleum companies
  • List of articles about Canadian oil sands

References

  1. ↑ 1.0 1.1 "Market Activity - Income Statement". https://money.tmx.com/en/quote/SU/financials-filings. 
  2. ↑ 2.0 2.1 "Market Activity - Balance Sheet". https://money.tmx.com/en/quote/SU/financials-filings. 
  3. ↑ "Annual Information Form" (PDF). Suncor. p. 27. https://sustainability-prd-cdn.suncor.com/-/media/project/suncor/files/investor-centre/annual-report-2021/2021-aif-en.pdf?modified=20220322152336&_ga=2.268830131.35460348.1666299375-787749099.1666031349. 
  4. ↑ "Forbes Global 2000". https://www.forbes.com/companies/suncor-energy/?sh=4c9f89c238dc. 
  5. ↑ Bromels, John (2017-06-30). "3 Things You Didn't Know About Suncor Energy Inc." (in en). The Motley Fool. https://www.fool.com/investing/2017/06/30/3-things-you-didnt-know-about-suncor-energy-inc.aspx. 
  6. ↑ Vassiliou, Marius S. (2018). Historical Dictionary of the Petroleum Industry. Rowman & Littlefield. p. 454. ISBN 978-1-5381-1160-4. https://books.google.com/books?id=_YlZDwAAQBAJ. 
  7. ↑ "Suncor buys Denver refinery, stations". The Globe and Mail. https://www.theglobeandmail.com/report-on-business/suncor-buys-denver-refinery-stations/article1160267/. 
  8. ↑ "Suncor Acquires Second Valero Refinery". CSP Daily News. https://www.cspdailynews.com/fuels/suncor-acquires-second-valero-refinery. 
  9. ↑ "Suncor to Sell Shell Fuel in Colorado". CSP Daily News. https://www.cspdailynews.com/fuels/suncor-sell-shell-fuel-colorado. 
  10. ↑ "Suncor adds two new brands to their Colorado roster". Suncor Connections. https://connections.suncor.com/suncor-usa/december-2015/suncor-adds-two-new-brands. 
  11. ↑ "Suncor, Petro-Canada merge". Canoe. March 23, 2009. http://money.canoe.ca/News/Other/2009/03/22/8847781-cp.html. 
  12. ↑ "Suncor, Petro-Canada announce merger". CBC News. March 23, 2009. http://www.cbc.ca/money/story/2009/03/23/suncor-petro-canada-merge.html. 
  13. ↑ Suncor shareholders add support to Petrocan deal, CTV, June 4, 2009, http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20090604.wpetrocan0604/business/Business/businessBN/ctv-business 
  14. ↑ "Competition Bureau approves merger". Petro Canada. June 4, 2009. http://www.petro-canada.ca/en/media/1886.aspx?id=1020094. 
  15. ↑ "Suncor, Petro Canada complete merger". bizjournals. August 6, 2009. http://www.bizjournals.com/denver/stories/2009/08/03/daily65.html. 
  16. ↑ "Husky buys 98 stations from Suncor" (in en-US). CBC News. https://www.cbc.ca/news/business/husky-buys-98-stations-from-suncor-1.790315. 
  17. ↑ "Suncor Energy launches $4.3 billion hostile bid for Canadian Oil Sands". October 6, 2015. https://www.reuters.com/article/us-canadian-oil-m-a-suncor-energy-idUSKCN0RZ13O20151005. 
  18. ↑ Gayathri, Amrutha (2016-01-18). "Suncor reaches deal to buy Canadian Oil Sands with sweetened offer". https://www.reuters.com/article/us-canadian-oil-m-a-suncor-energy/suncor-reaches-deal-to-buy-canadian-oil-sands-with-sweetened-offer-idUSKCN0UW1V6. 
  19. ↑ "Suncor snags majority control of Syncrude with $937M Murphy Oil deal". April 27, 2016. http://www.ctvnews.ca/business/suncor-snags-majority-control-of-syncrude-with-937m-murphy-oil-deal-1.2878064. 
  20. ↑ "Suncor assumes operatorship of Syncrude joint venture in bid to improve performance". October 4, 2021. https://www.jwnenergy.com/article/2021/10/4/suncor-assumes-operatorship-of-syncrude-joint-vent/. 
  21. ↑ "Suncor announces energy industry veteran Rich Kruger as new CEO | Globalnews.ca" (in en-US). https://globalnews.ca/news/9500467/suncor-energy-rich-kruger-new-ceo/. 
  22. ↑ "Suncor taps former Exxon executive as CEO" (in en-ca). February 21, 2023. https://www.jwnenergy.com/article/2023/2/21/suncor-taps-former-exxon-executive-as-ceo/. 
  23. ↑ "Suncor announces energy industry veteran Rich Kruger as new CEO | Globalnews.ca" (in en-US). https://globalnews.ca/news/9500467/suncor-energy-rich-kruger-new-ceo/. 
  24. ↑ "Suncor announces energy industry veteran Rich Kruger as new CEO | Globalnews.ca" (in en-US). https://globalnews.ca/news/9500467/suncor-energy-rich-kruger-new-ceo/. 
  25. ↑ "Suncor announces energy industry veteran Rich Kruger as new CEO | Globalnews.ca" (in en-US). https://globalnews.ca/news/9500467/suncor-energy-rich-kruger-new-ceo/. 
  26. ↑ Inc, Suncor Energy. "Suncor Energy Responds to Cyber Security Incident" (in en). https://www.newsfilecorp.com/release/171281/Suncor-Energy-Responds-to-Cyber-Security-Incident. 
  27. ↑ "https://twitter.com/petrocanada/status/1673347604829315072" (in en). https://twitter.com/petrocanada/status/1673347604829315072. 
  28. ↑ "Suncor Energy to acquire TotalEnergies’ Canadian operations for $1.47-billion" (in en-CA). https://www.theglobeandmail.com/investing/markets/stocks/SU-T/pressreleases/20837901/. 
  29. ↑ 29.0 29.1 29.2 "2011 Annual report (SU)". Suncor. http://www.suncor.com/pdf/Suncor_annual_report_2011_en.pdf. 
  30. ↑ "Canadian Natural Resources Limited Announces Acquisition of 100% Working Interest in the Joslyn Oil Sands Project". https://www.cnrl.com/upload/media_element/1194/04/0831_joslyn-oil-sands-project.pdf. 
  31. ↑ "Gas retailers sue Suncor over Petro-Can merger" (in en-US). CBC News. January 19, 2010. https://www.cbc.ca/news/business/gas-retailers-sue-suncor-over-petro-can-merger-1.911739. 
  32. ↑ "Judge blocks $200M suit against Suncor" (in en-US). National Post. 2010-12-21. https://nationalpost.com/news/judge-blocks-200m-suit-against-suncor/wcm/c39b44d9-b015-4a1c-b15f-fbb9364d9a88. 
  33. ↑ "Shell and Phillips 66". Suncor. June 1, 2010. http://www.suncor.com/default.aspx?cid=75&lang=1. 
  34. ↑ "Suncor gas-price fixing reaps $500K fine". CBC News. April 13, 2012. http://www.cbc.ca/news/business/story/2012/04/13/suncor-price-xing.html. 
  35. ↑ "Global Airline Guide 2016 (Part One)". Airliner World (October 2016): 9. 
  36. ↑ Stephenson, Amanda (2016-09-21). "Suncor eliminates in-house aviation department, WestJet picks up contract". Calgary Herald. https://calgaryherald.com/business/local-business/suncor-eliminates-in-house-aviation-department-westjet-picks-up-contract. 
  37. ↑ Template:CanICAOD
  38. ↑ "Canadian Civil Aircraft Register: Quick Search Result for Suncor Energy". Transport Canada. August 28, 2013. https://wwwapps.tc.gc.ca/Saf-Sec-Sur/2/CCARCS-RIACC/ADet.aspx?id=533695&rfr=RchSimp.aspx. 
  39. ↑ "Becoming No. 1: Suncor's story". CBC News. March 23, 2009. http://www.cbc.ca/money/story/2009/03/23/f-suncor-faq.html. 
  40. ↑ "Pollution Watch Factsheet". http://www.pollutionwatch.org/pressroom/factSheetData/GHGFactSheetEng.pdf. 
  41. ↑ "Suncor fined $850,000 for environmental violations". CBC News. April 2, 2009. https://www.cbc.ca/news/canada/edmonton/suncor-fined-850-000-for-environmental-violations-1.800377. 
  42. ↑ "Suncor fined twice in one day". Calgaryherald.com. April 2, 2009. https://calgaryherald.com/business/fp/Suncor+fined+twice/1457244/story.html. 
  43. ↑ "Ninety charges against Suncor surface a year later". Greenpeace Canada. March 10, 2009. http://www.greenpeace.org/canada/en/campaigns/suncor-charges. 
  44. ↑ "Suncor fined $2.2 million for leaking cancer-causing chemical". KWGN. April 2, 2012. http://kwgn.com/2012/04/02/suncor-fined-2-2-million-for-leaking-cancer-causing-chemical/. 
  45. ↑ Finley, Bruce (April 2, 2012). "Suncor refinery in Commerce City will pay fine for air quality violations". The Denver Post. http://www.denverpost.com/breakingnews/ci_20308243/suncor-refinery-commerce-city-will-pay-fine-air. 
  46. ↑ Finley, Bruce (January 6, 2012). "Suncor refinery employees tested for benzene contamination". The Denver Post. http://www.denverpost.com/breakingnews/ci_19690855. 
  47. ↑ Crummy, K. E. (May 25, 2012). "Suncor spill clean-up at Sand Creek is months, years away". The Denver Post. http://www.denverpost.com/breakingnews/ci_20710927/suncor-spill-clean-up-months-years-away?source=pkg. 
  48. ↑ Lardieri, Alexa (2018-04-20). "Colorado counties sue Exxon, Suncor over climate change". CNBC. https://www.cnbc.com/2018/04/20/colorado-counties-sue-exxon-suncor-over-climate-change.html. 
  49. ↑ Weis, Kati (2020-03-06). "'Historic' $9 Million Fine Issued Against Suncor Energy Refinery In Commerce City". CBS Denver. https://denver.cbslocal.com/2020/03/06/historic-9-million-fine-against-suncor-energy-refinery-commerce-city/. 
  50. ↑ Brown, Michael B. (May 2, 2009). "Why be shy about green success story?". https://www.pressreader.com/canada/edmonton-journal/20090502/281719790530125. 

External links



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