Suncor’s 2019 Report on Sustainability contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in Suncor’s 2019 Report on Sustainability include references to: that the integrated pillars of sustainability will continue to guide Suncor as it embarks on the next phase of its evolution and that Suncor will harness the possibilities of innovation, technology and digital to become better at what it does; that Suncor will be guided by its purpose, the expected requirements of doing so and that doing so will guide Suncor to deliver economic prosperity, improved social well-being and healthy environment for today and tomorrow; the belief Suncor must foster a workplace culture where everyone is inspired to be and give their best in order to unleash the full potential of Suncor's people and the steps Suncor will take to create such a workplace; the belief that through Suncor 4.0, Suncor will be able to stay ahead of the curve relating to the changing energy and business landscape; the belief that Suncor has an important role to play in the transformation of the energy system towards a low carbon economy and that innovation will be critical to its success; that Suncor will continue to innovate at an accelerated level to improve environmental performance and address complex social challenges; statements about Suncor's social goal, including the expectation that Suncor will continue to expand its efforts in support of the goal and the manners in which it will do so and the factors that will allow Suncor to achieve this goal; statements regarding Suncor's goal to decrease overall GHG emissions intensity of its production of oil and petroleum products by 30% by 2030, including that Suncor can see a realistic path to achieving such goal, the areas of focus to achieve this goal, the factors that will allow Suncor to meet this goal and that the goal will move Suncor toward ultimately bending the curve on the company's absolute GHG emissions; the potential impact of in situ technology on GHG emissions from operations and the timing of such technologies; that technological advances will help Canada earn the trust needed to be the progressive supplier of choice to the global community; the belief that Canadian energy is some of the most responsible energy on the planet and that the Canada oil and gas industry will remain part of the energy mix; Suncor's plan to remain resilient and thrive in a low carbon economy and the steps it will take to do so, including through investments in technology development and deployment; Suncor's belief that a 'zero incident' workplace is achievable; the expected benefits from the WTDC being operational; the impacts of properly managing, or failing to properly manage, our priorities (capital discipline, operational excellence, long-term profitable growth and safety) as well as environmental and/or social issues; the belief that Suncor's focus on operational excellence will help unlock the full value of its resources; that Suncor's flexible business model will allow it to capture the shift in value between operating segments during periods of market volatility and limit its exposure to crude differentials; that the company's midstream assets and pipeline commitments will provide operational flexibility to Suncor; that Suncor will be an energy supplier of choice for decades to come; that Suncor will become even better at scenario-planning and the expected benefits therefrom; that Suncor can continue to generate strong shareholder value while responsibly producing the energy the world needs; Suncor's intention to create a new long-term water goal; Suncor's support of the United Nations SDG's and the actions Suncor will take in connection therewith; expectations for renewable power development, including its potential to contribute to both Suncor's GHG and social goal, the manner and areas in which Suncor will proceed with such projects including the Forty Mile Wind Power Project, the effect technology will have in the renewables area and the impacts of such development; the potential impact of blending ethanol into gasoline on CO2 emissions; the expected benefits of OEMS; the impact our governance framework has on raising the bar on sustainable project development and the expected benefits of integrating sustainability into our process for developing physical assets; the anticipated benefits from communication with government officials and other stakeholders; the belief that a carbon price signal that incents the right behaviour is effective policy to address the Canadian oil and gas industry's GHG emissions; the requirements to achieve a unified Canadian energy vision for 2050; statements regarding current and future government regulations regarding GHG emissions and the expected impacts thereof; the belief that the major pipeline projects are critical and will bring responsibly developed Canadian crude oil to new and expanded markets; that construction on the Enbridge Line 3 replacement will commence and that the line will go into service in 2020; the expectation that Suncor will continue to work with stakeholders with respect to market access objectives; statements about Suncor's long-term goal with respect to inclusion and diversity, including the belief that breaking down barriers will help Suncor improve the way it works together to achieve goals and the belief that a feeling of inclusion will positively contribute to strong employee engagement and business performance; the belief that additional disclosure about the resilience of our business strategy benefits shareholders and stakeholders; that Suncor will continue to be an active partner as the world works together to solve the energy and climate dilemma and that Suncor will play an important role investing in technology and innovation to reduce GHG emissions and continue to collaborate with others to help us all move toward a low carbon future, the belief that Suncor and Canada are uniquely positioned to continue to deliver the energy the world needs, the expectation that all types of energy will be needed and no single solution or pathway will meet the challenge and the reasons for such beliefs; the belief that the amount of energy the world will require will continue to increase and in order to avoid the worst impacts of climate change, collectively the world will have to tackle the emissions challenge associated with that growth by taking urgent action; expectations regarding demand for energy, oil, natural gas, distillates, gasoline, biofuels, diesel and other energy sources as well as the reasons for such expectations; the belief that the number of companies reporting on climate risk will continue growing; that Suncor will continue to take steps to develop a 2°C scenario that looks beyond 2040 to include in its business strategy review and will report on this process next year; the expected requirements to achieve the aims and objectives of the Paris Agreement; the belief that technology and energy innovation has the potential to move emissions reduction from incremental to step change improvement; the belief that Suncor will continue to meet the demand for liquid fuels while reducing carbon intensity and the reason for such belief; the belief that Suncor plans effectively for potential future business environments; expectations relating to increasing low carbon power generation capacity and that it will support our own needs while reducing the carbon intensity of Alberta's power grid; the belief that a broad-based price on carbon can be a key market mechanism to lower emissions; statements about the TCFD, including the expected benefits from disclosure of climate-related financial information and that global context is required to provide a complete picture of operational performance, strategic planning and risk management; statements about Fort Hills, including the expectation that GHG intensity will decline further as the facility operates at steady state design capacity and that the less carbon intensive paraffinic froth treatment will result in a GHG intensity of production roughly on par with the average crude refined in the U.S.; estimates of Suncor’s future GHG emissions and emissions intensity; statements about the potential opportunity to develop a utility-scale photovoltaic facility in Alberta; expectations relating to technology and the expected impacts and benefits therefrom, including, amongst others, technology being designed, developed or tested by Suncor and its partners such as in situ extraction technologies, SAGD, Solvent+, EASE, ESEISHTM, ES-SAGD, non-aqueous extraction, thermal-solvent technologies, solvent-only technologies, steam-solvent technologies, high temperature reverse osmosis produced water treatment, mild thermal cracker technology, well-bore technologies, novel subsurface technologies, alternative gas co-injection, froth treatment tails, drone technology, in situ demonstration facility, SAGD LITE, wellbore enhancements, permanent aquatic storage solution, demonstration pit lake, paraffinic froth treatment, autonomous haulage systems, Nikanotee Fen and wastewater treatment membrane ultrafiltration; the belief that the solution to lowering the carbon intensity of producing bitumen and improve cost competitiveness will be a hybrid of the technologies we're progressing and that some of these technologies could be applied to existing facilities or new growth facilities which would, if successful, significantly reduce our GHG emissions intensity; Suncor's base case energy outlook, including the trends that are incorporated therein; long-term energy future scenarios used to test Suncor’s business and growth strategy, the trends that shape them and the expected impact of the scenarios on the energy markets generally and Suncor specifically; opportunities for advancing energy efficiency involving Syncrude; the expectation that oil sands facilities, once operating, will last 40 plus years with a steady output and can continue to operate with low operating costs and sustaining capital requirements and provides a unique opportunity to advance technologies to reduce emissions; expectations for fleet emissions and internal combustion engines in the future; expectations relating to hybrid, plug-in hybrid and electric vehicles; statements regarding the construction and operation of a coast-to-coast electric vehicle fast-charging network, including that it will enable us to learn more about this emerging market while continuing to evaluate options and respond to the evolving needs of customers, the timing of the project and the speed in which charges will be able to be delivered; that opportunities are created due to the requirement for steam at crude oil extraction and processing facilities; the impact of scale on renewable power and the belief that equipping wind and solar sites with battery storage could further improve effectiveness; statements about the replacement of coke-fired boilers with cogeneration units, including the expected amount of electricity which will be exported to the provincial grid and the timing associated with this project; the belief that integrating sustainability into our supply chain will act as a driver of change, and the processes that will be used to foster the integration; the expected impact of Canadian climate change regulations and the expectations about the actions and areas of focus of governments around the world as it relates to the transition to a lower carbon system; Suncor's facility resilience to extreme weather events, including temperature extremes, hurricanes and icebergs and precipitation, droughts and wildfires; the estimated impact of our carbon price outlook; that Suncor will continue to explore opportunities to further reduce water use; the expectation that the closed loop system at Lake Miwasin will allow water to be naturally released to the environment; statements about COSIA, including the expectation that COSIA will help reduce the regional, operational footprint and better protect natural water resources as well as improve tailings management, its goal of reducing its operational footprint intensity by 10% by 2022; that a high temperature membrane plant could reduce the energy required and infrastructure for the SAGD water treatment process; that another tailings pond will be removed from Base plant operations in the next few years because of PASS technology; the belief that our approach to tailings management will continue to evolve; statements about coke capping technology, including its expected benefits; the expectation that the ratio of land being disturbed by development will decline as reclamation continues to increase; the belief that the Boreal Habitat Conservation Initiative will ensure the larger boreal forest ecosystem will remain undisturbed and biodiversity will be preserved; statements about the SEF and the benefits Suncor expects SEF to deliver; the belief that digital technology will help improve the safety, productivity, reliability and environmental performance of our operations; the expectation that downstream emissions associated with refining product will be reduced; the expected benefits from ongoing and future construction phases of the wastewater treatment facility at Commerce City; statements about Suncor's downstream carbon reduction initiatives and their expected benefits; the anticipated benefits from digitization initiatives such as advanced analytics, remote sensing technologies and robotic process automation;
Some of the forward-looking statements and information may be identified by words like “expected”, “anticipated”, “will”, “estimates”, “plan”, “scheduled”, “intended”, “believes”, “projected”, “indicates”, “could”, “focus”, “vision”, “mission”, strategy”, “goal”, “outlook”, “proposed”, “target”, “objective”, “continue”, “should”, “may”, “aim”, “strives”, “would”, “potential”, “committed”, “opportunity” and similar expressions.
Forward-looking statements are based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves and resources estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; capital efficiencies and cost-savings; applicable laws and government policies, future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; the receipt, in a timely manner, of regulatory and third-party approvals; assumptions relating to demand for oil, natural gas, distillates, gasoline, diesel and other energy sources; the development and performance of technology; population growth and dynamics; assumptions relating to long-term energy future scenarios; and Suncor’s carbon price outlook. 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. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.
Risks, uncertainties and other factors that could influence the financial and operating performance of all of Suncor’s operating segments and activities include, but are not limited to, changes in general economic, market and business conditions, such as commodity prices, interest rates and currency exchange rates; fluctuations in supply and demand for Suncor’s products; the successful and timely implementation of capital projects, including growth projects and regulatory projects; risks associated with the development and execution of Suncor's projects and the commissioning and integration of new facilities; the possibility that completed maintenance activities may not improve operational performance or the output of related facilities; the risk that projects and initiatives intended to achieve cash flow growth and/or reductions in operating costs may not achieve the expected results in the time anticipated or at all; competitive actions of other companies, including increased competition from other oil and gas companies or from companies that provide alternative sources of energy; labour and material shortages; actions by government authorities, including the imposition or reassessment of, or changes to, taxes, fees, royalties, duties, tariffs, quotas and other government-imposed compliance costs and mandatory production curtailment orders and changes thereto; changes to laws and government policies that could impact the company's business, including environmental (including climate change), royalty and tax laws and policies; the ability and willingness of parties with whom we have material relationships to perform their obligations to us; the unavailability of, or outages to, third party infrastructure that could cause disruptions to production or prevent the company from being able to transport its products; the occurrence of a protracted operational outage, a major safety or environmental incident, or unexpected events such as fires (including forest fires), equipment failures and other similar events affecting Suncor or other parties whose operations or assets directly or indirectly affect Suncor; the potential for security breaches of Suncor’s information technology and infrastructure by malicious persons or entities, and the unavailability or failure of such systems to perform as anticipated as a result of such breaches; security threats and terrorist or activist activities; the risk that competing business objectives may exceed Suncor's capacity to adopt and implement change; risks and uncertainties associated with obtaining regulatory, third-party and stakeholder approvals outside of Suncor's control for the company's operations, projects, initiatives and exploration and development activities and the satisfaction of any conditions to approvals; the potential for disruptions to operations and construction projects as a result of Suncor's relationships with labour unions that represent employees at the company's facilities; our ability to find new oil and gas reserves that can be developed economically; the accuracy of Suncor’s reserves, resources and future production estimates; market instability affecting Suncor’s ability to borrow in the capital debt markets at acceptable rates or to issue other securities at acceptable prices; maintaining an optimal debt to cash flow ratio; the success of the company’s risk management activities using derivatives and other financial instruments; the cost of compliance with current and future environmental laws, including climate change laws; risks relating to increased activism and public opposition to fossil fuels and oil sands; risks and uncertainties associated with closing a transaction for the purchase or sale of a business, asset or oil and gas property, including estimates of the final consideration to be paid or received, the ability of counterparties to comply with their obligations in a timely manner; risks associated with joint arrangements in which the company has an interest; risks associated with land claims and Aboriginal consultation requirements; the risk the company may be subject to litigation; the impact of technology and risks associated with developing and implementing new technologies; and the accuracy of cost estimates, some of which are provided at the conceptual or other preliminary stage of projects and prior to commencement or conception of the detailed engineering that is needed to reduce the margin of error and increase the level of accuracy. The foregoing important factors are not exhaustive.
Suncor's Management's Discussion and Analysis for the first quarter of 2019 dated May 1, 2019 and its Annual Information Form, Form 40-F and Annual Report to Shareholders, each dated February 28, 2019, 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 3E3, by calling 1-800-558-9071, or by email request to firstname.lastname@example.org or by referring to the company's profile on SEDAR at sedar.com or EDGAR at sec.gov. 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.
Oil Sands operations cash operating costs per barrel is not prescribed by Canadian generally accepted accounting principles (“GAAP”). For the year ended December 31, 2018, this non-GAAP measure is defined and reconciled in Suncor’s Annual Report to Shareholders for dated February 28, 2019. For the year ended December 31, 2011, this non-GAAP measure is defined and reconciled in Suncor’s Management Discussion and Analysis for the year ended December 31, 2013 dated February 24, 2014. This non-GAAP measure does not have any standardized meaning and therefore is unlikely to be comparable to similar measures presented by other companies. This non-GAAP measure is included because management uses the information to measure Oil Sands operating performance, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Land is considered permanently reclaimed when landform construction and contouring, clean material placement (as required), reclamation material placement and revegetation has taken place. Land cannot be listed under permanent reclamation until revegetation has occurred which is reflective of the approved Reclamation and Revegetation Plans. Suncor has reclaimed a cumulative total of 48.2 hectares of wetlands and lakes.
BOEs and Conversions
Certain natural gas volumes have been converted to barrels of oil equivalent (boe) on the basis of one barrel to six thousand cubic feet. Any figure presented in boe may be misleading, particularly if used in isolation. A conversion ratio of one barrel of crude oil or natural gas liquids to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Cubic metres of oil equivalent and are calculated on the basis of one boe to 0.159 standard cubic metres. As cubic metres of oil equivalent are based on a conversion involving boe, all values are subject to the same limitations as boe, noted above.
References to “Suncor”, “we”, “our” and “the company” in Suncor’s 2019 Report on Sustainability mean Suncor Energy Inc., its subsidiaries, partnerships and interests in associates and jointly controlled entities, unless the context otherwise requires.
The use of “partnership” throughout Suncor’s 2019 Report on Sustainability does not necessarily mean a partnership in the legal context.