Suncor’s 2020 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 2020 Report on Sustainability include references to: expectations that responding and recovering from the effects of the pandemic and fostering resiliency will require cooperation and collaboration among all stakeholders; beliefs with respect to managing and reducing our environmental footprint, including finding ways to reduce absolute emissions; that we expect we will continue work to lower absolute emissions to meet the targets in the Paris agreement including more ambitious approaches to sustainability beyond our 2030 commitments; the expectation that the $1.4 billion investment in a new cogeneration facility at our Oil Sands Base will reduce GHG emissions from out base plant by approximately 25%, and the expected timeline of the project; the belief that the Forty Mile Wind Power Project, once in commercial service, will generate double digit economic returns through zero carbon generation, and that Suncor will retain the carbon credits to offset costs elsewhere in Suncor’s business and the expected timeline of the project; the expectation that when we look back years from now, our collective action of working together to build a better future will stand out; the expectation of a 50-70% potential GHG reduction and lower water use through solvent-based processes; that expectation that Suncor will continually monitor and assess the impacts and benefits of our business, and effectively share these efforts; 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; the belief that Suncor will work toward its goal to decrease overall GHG emissions and the intensity of its production of oil and petroleum products by 30% by 2030 and will move Suncor toward ultimately bending the curve on the company's absolute GHG emissions; Suncor's belief that a 'zero incident' workplace is achievable; the expectation that the Water Technology Development Centre will be beneficial once it is operational; the belief that Suncor will continue to strengthen our relationships and build greater trust with Indigenous communities, to listen and learn from communities and find mutually beneficial ways that they can become more involved in energy development; to encourage our industry peers and suppliers to consider all elements of sustainability and to expect them to also raise the bar; the expectation that our new cogeneration facility that will help green Alberta’s electrical grid and avoid the equivalent emissions of 550,000 passenger vehicles per year; the expectation that the Forty Mile Wind Project will provide the equivalent of 100,000 homes’ electricity use per year; the belief that once the Forty Mile Wind and cogeneration facility projects come online, we'll have even more examples of how we are reducing greenhouse gas emissions; the expectation that there will be continuing demand around the world for many years to come; the belief that as an integrated energy company, we're well poised to be part of the transformation to future energy sources because we know all sources of energy are required; that belief that Suncor is driving to achieve significant reductions sooner than 2050, and we would like to be net zero by 2050; the expectation that we are committed to change the way we think and act as an organization and build greater mutual trust and respect with the Indigenous Peoples of Canada through a goal that outlines four areas to focus on through 2025 and beyond where we can work together to advance greater participation of Indigenous Peoples and communities in energy development; the expectation that Suncor extend our commitment to water stewardship by setting a new long-term water goal and site-specific water targets; the expectation that we move toward the UN sustainability goals about gender equality, water sanitation, modern and sustainable energy, sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all resilient infrastructure, promote inclusive and sustainable industrialization, sustainable consumption and production patterns and urgent action to combat climate change and its impacts; that we plan to create economic opportunities for Indigenous groups through both service provision and equity partnership opportunities; the belief that Suncor is well positioned to succeed due to the company’s advantages: financial strength, capital discipline, a highly efficient, tightly integrated suite of assets, an industry-leading long-life, low-decline oil sands reserves base, a sophisticated infrastructure and logistics network, strategic refineries and retail network, and our investment in sustainability, technology and innovation; the belief that Canada has a significant strategic resource in the oil sands that will continue to play an important role in the global energy system for the foreseeable future; the expectation that achieving high-level sustainability performance will demand effective collaboration and humility to learn with and from our partners in a way that spurs disruptive innovation and embeds sustainability throughout our extended ecosystem; the expectation that Suncor continues to evaluate the needs of our people to support them in focusing on their overall well-being and mental health; the belief that Suncor will further strengthen our process safety performance and culture, and is committed to investigating safety events so that we can take corrective actions to mitigate barriers and apply learnings across the enterprise; the belief that Suncor show its commitment to building inclusion and belonging through raising awareness, listening, creating conversations, striving for fair treatment and building skills because we believe this will positively contribute to strong employee engagement and ultimately our business performance; that Suncor endeavors to become a world class sustainable energy supplier while maintaining and improving air quality near all of our operations, and that Suncor participates in programs to progress our air monitoring capability and understanding with the goal of reducing our air emission intensities over time; that selective catalytic reduction technology will be implemented as part of Suncor’s Oil Sands Base Plant Coke Boiler Replacement Project to achieve higher NOx emissions reductions; the belief that water is a shared and precious resource that must be managed wisely using a balanced, integrated and sustained approach, and that it is important to find ways to continuously improved our water use efficiency (including limited water withdrawals and maximizing recycling and safe return) across our business units; Suncor's intention to create a new long-term water goal and site-specific water targets, and the expectation that the new goal will reflect our exiting and future water requirements and the need to maintain healthy, clean watersheds for future generations; that we are working towards a cultural shift and behavioural changes within the organization to increase the participation of Indigenous Peoples in energy development; 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 expectations 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 expectation that Suncor continue to work toward the 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 a price on carbon can be a key market mechanism to lower emissions; the expectation that GHG intensity will decline further at Fort Hills 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.; the expectations 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; the belief that there will be further opportunities for advancing energy efficiency involving Syncrude; expectations for fleet emissions and internal combustion engines in the future; expectations relating to hybrid, plug-in hybrid and electric vehicles; 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 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;the expectation that Suncor's facilities are resilient to extreme weather events, including temperature extremes, hurricanes and icebergs and precipitation, droughts and wildfires; the estimated impact of our carbon price outlook; the belief that another tailings pond will be removed from Base plant operations in the next few years because of PASS technology; the belief that the Lake Miwasin PASS project will be monitored and adaptively managed for the next 15 years;the plan to incorporate stakeholder feedback into engagement plans for tailings treatment and enhancing how information about tailing is shared; that Suncor is working to decrease the inventory of fluid tailings ponds; that Suncor is working to reduce the number of active tailings ponds and that three are advancing to closure; that Suncor is working towards our strategic priority of continuing to manage our tailings across their life cycle in a strategic and environmentally responsible way; the expectation that coke capping technology will produce benefits; that expectation that opportunistic wetlands will be incorporated into Suncor’s reclamation tracking and monitoring programs; the expectation that community investment and the SEF and the benefits Suncor expects community investment and the SEF to deliver; expectations about Suncor’s partnership with CFC and its expansion of their pilot project work; the expectation that Suncor continues to invest in performance improvements and be part of energy system transformation as these are critical to business resiliency and long-term shareholder and stakeholder value creation; the expectation that Suncor will reduce total GHG emissions intensity from the production of our oil and petroleum products by 30% by 2030; the belief that all energy sources, including Canada’s oil sands industry, will have a role to play in contributing to a low-carbon future; the expectation that Suncor will continue to develop secure and stable sources of energy with strong oversight and governance to manage carbon risk; the expectation that Suncor will continue to significantly invest in technology development and deployment, and digital technologies to optimize current assets and develop next-generation facilities; the expectation that, over the next year, Suncor expects to continue engagement with investors, including the Climate Action 100+ initiative; the expectation that Suncor will embed sustainable practices in our supply chain, create opportunities for cross-value chain strategic supplier engagement and enable supply chain contributions to innovation; the belief that Suncor’s transition strategy is to steadily reduce the cost and carbon footprint of our base business while investing in new lower carbon forms of energy, consumer products and services; the belief that, as a new decade begins with focused attention on pandemic-recovery efforts, business plans of leading companies must consider evolving trends and consumer preferences in order to be capable of thriving in a range of possible scenarios, both in the near-term (0-10 years) and longer term (10-25+ years); the expectation that Suncor will continue to invest in strategic initiatives and technologies that support continuous improvement across our operations at both our Base Plant operations and Fort Hills such as value chain optimization and automation of mining and upgrading through autonomous haul systems (AHS); the belief that, for our in situ operations, Suncor is advancing opportunities and investments to reduce the energy intensity of the extraction process for our existing and future assets; the plan to replace coke-fired boilers with cogeneration units at our Oil Sands Base Plant which is expected to reduce GHG emissions intensity at our Oil Sands base plant by approximately 25% by replacing coke, a high carbon fuel source with lower carbon natural gas; the belief that Suncor has a strong portfolio of renewable power development sites across Canada that will further reduce reliance on higher carbon-intensive grids in regions like Alberta and Saskatchewan; the expectation that Suncor will continue to explore the opportunity to develop our first utility-scale solar photovoltaic facility in Alberta to complement our experience in developing, constructing and operating wind power projects; the belief that, as climate regulations are implemented across jurisdictions, renewable power will benefit from greater scale which can improve the technology, efficiency and economic viability; the expectation that Suncor will gradually recover from the COVID-19 pandemic as governments lift stay-at-home restrictions and induce economic recovery through stimulus spending; the expectation that we will continue to see a modest decline in demand for gasoline in North America over the next decade or so; the expectation that potential near-term demand destruction for distillates in Canada may occur as a result of the federal government’s Electric Vehicle Strategy and Clean Fuel Standard (CFS) which remains under development; the belief that long-term gasoline demand is expected to be moderated by efficiency improvements in internal combustion engines and increased uptake of biofuels, as well as hybrid and electric vehicles; the belief that our connection to a reliable source of crude oil combined with our investments in biofuels technology will allow us to continue to meet the demand for liquid fuels while at the same time reducing carbon intensity; the expectation that governments at all levels in Canada are seeking to diversify transportation fleets to use lower carbon intensity fuels and, as a result, the transportation fueling landscape is expected to change over time; the expectation that the cost of liquid petroleum fuels with its high energy density are forecasted to remain relatively low as a result of the high global inventories and forecasted low oil prices; the belief that, in the longer term, diesel will remain the predominant fuel in North America for heavy haulage, aviation, marine and rail, and we see demand growth with increasing economic activity as the world recovers from the COVID-19 pandemic; the belief that hybrid, plug-in hybrid and electric vehicles will remain cost-effective additions to the passenger vehicle fleet and will, along with fuel efficiency standards, contribute to moderating growth in long-term global gasoline demand; the expectation that heavy haul trucks, aviation and marine fuels of the future will require advanced biofuel blending; the expectation that new 2°C scenario beyond 2040 will continue informing Suncor’s long-term business planning and corporate strategy and allows us to understand what a pathway could entail to keep global temperatures from rising 2°C, or less, by 2100 compared with pre-industrial levels; the expectation that Suncor will continue to advocate for environmental policies and regulations that help us address climate change, including supporting a broad-based price on carbon; the belief that we are committed to continuously improving energy management and reducing GHG emissions as part of everyday operational excellence; the expectation that, over the next decade our goal will be driving operational, energy and fuel efficiency improvements, accelerating the development and implementation of new technologies and encouraging the evaluation of potential low-carbon business opportunities; the expectation that Suncor will continue to work to close the gap in our goal progress over the next decade, realizing the need to continue seeking opportunities to collaborate with solutions-oriented partners in reducing emissions in the energy system; the belief that, in today’s complex and rapidly changing world, it will take new technologies and innovative thinking to further reduce our environmental footprint, In some instances, the development and deployment of the technologies we’re pursuing will take us beyond 2030; the belief that our biofuels have the potential to significantly reduce GHG emissions and facilities that Suncor develops and operates in the future based on these investments, will also contribute to our GHG goal; and the expectation that LanzaJet will produce sustainable aviation fuel from ethanol from recycled pollution and waste products.
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; the current and potential adverse impacts of the novel coronavirus pandemic; 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 (including as a result of demand and supply effects resulting from the COVID-19 virus pandemic and the actions of OPEC and non-OPEC countries); 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 major 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, and other government-imposed compliance costs; 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 Suncor has material relationships to perform their obligations to the company; 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 marketing and logistics 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 2020 dated May 5, 2020 and its Annual Information Form, Form 40-F and Annual Report to Shareholders, each dated February 26, 2020, 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 email@example.com 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, 2019, this non-GAAP measure is defined and reconciled in Suncor’s Annual Report to Shareholders for dated February 26, 2020. 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.
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 2020 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 2020 Report on Sustainability does not necessarily mean a partnership in the legal context.