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The economic benefits of our success extend well beyond the returns we provide to shareholders. In 2015, we contributed a combined $1.3 billion in royalties and taxes for governments — revenues that were then available to help fund public sector programs including education, health care and vital infrastructure.
We also generate economic growth and prosperity through our purchase of goods and services. In 2015 our supply chain teams worked with approximately 7,400 suppliers representing over $12.8 billion in combined spending on goods and services.
Royalties and taxes
In 2015, royalties totalled over $381 million, including $114 million directed to the oil sands royalties. As well, income taxes totalled approximately $892 million to governments in Canada and internationally.*
* Does not include excise taxes collected and remitted by Suncor.
Capital and exploration expenditures totalled $6.2 billion in 2015, compared to $6.5 billion in 2014.
Goods and services
We have a defined process to segment spend by categories and to develop supply strategies by category. This process identifies those suppliers that are high volume, those that provide critical materials and/or services and those that are non-substitutable.
A look at our supply chain spending shows we had more than 5,400 Canadian vendors spanning all 10 provinces as well as the Northwest Territories the Yukon and Nunavut. The United States was our next biggest supplier (more than 1,400 vendors), and we also purchased from 40-plus other countries.
We have 7 major category groups that are further segmented into sub-categories. The taxonomy used to define and create these categories and sub-categories is the United Nations Standard Products and Services Code (UNSPC) that is used globally to classify products and services. The range of goods and services is extensive and includes:
- aviation services
- chemicals, gases and fluids
- civil works
- construction services
- drilling machinery and accessories
- drilling and completion services
- engineering services and tech support
- facility materials
- freight and transportation
- ground transportation
- instrumentation and controls
- IS hardware, software and services
- maintenance and support services
- mining equipment
- offshore services
- rotating machinery
- services (EHS, professional, marketing and sales)
- static equipment
The typical split of materials versus services depends on the type of worksite, such as the following:
- operating facilities, where the spend is typically 60% services and 40% materials
- major greenfield construction sites, where the spend is typically 70% services and 30% materials
In 2015, we spent $599 million on direct purchases from Aboriginal businesses. Since 1999, Suncor has spent approximately $3.4 billion with Aboriginal businesses, nearly half of which was spent since 2011. We prefer to use local vendors whenever possible.