We are committed to a mission, vision and values that guide our business decisions.
Strong economic performance, along with social responsibility and environmental stewardship, is part of being a sustainable energy company. Our investment in energy production, upgrading, refining and marketing benefits the economy by:
- creating well-paying jobs
- promoting economic growth
- providing governments and suppliers with revenues
contributed in royalties and taxes for governments in 2017
total capital spending in 2017
spent with Aboriginal businesses since 1999
Development of our core assets also allows us to invest in our renewable energy business and in new technologies to improve company-wide operational efficiency and environmental performance. Our strong economic performance allows us to invest in profitable growth and continuous improvements in our existing operations, despite an uncertain oil price environment. The ripple effects of that investment are felt across the North American economy and well beyond.
In all of these ways, we continue to create value for our shareholders and society at large.
Royalties and taxes
In 2017, royalties totalled $931 million, including $355 million directed to oil sands royalties. As well, income taxes totalled $1.2 billion* to governments in Canada and internationally (*does not include excise taxes collected and remitted by Suncor).
Capital and exploration expenditures totalled $5.8 billion in 2017, not including capitalized interest, compared to $6.0 billion in 2016.
Goods and services
A look at our supply chain spending shows we had close to 5,000 Canadian vendors spanning all 10 provinces as well as the Northwest Territories and the Yukon. The United States was our next biggest supplier (more than 1,300 vendors), and we also purchased from nearly 40 other countries.
We have seven major category groups that are further segmented into categories and subcategories. The taxonomy used to define and create these categories and subcategories is the United Nations Standard Products and Services Code 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
- environment health and safety services or consulting
- engineering and consulting services
- facility services or materials
- fleet and fleet parts
- freight and transportation
- ground transportation
- health and wellness
- instrumentation and controls
- information services (hardware, services, applications and infrastructure)
- maintenance services
- marketing and sales
- materials (consumables and structural steel/PVF)
- mining equipment
- offshore equipment and services
- professional services
- static equipment
- support services
- tailings on-pond assets
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
We also have specific practices in place related to local supplier selection. Regional development clauses are in place with suppliers and in contracts across all businesses, and sourcing documents often have criteria that evaluate suppliers on Aboriginal or local representation.
In addition, our common practice is to post local contract and supplier opportunities on regional organizations’ websites such as Regional Economic Development (REDlink) and Northeastern Alberta Aboriginal Business Association (NAABA). This is to ensure local businesses and suppliers are aware of opportunities in their region.
In 2017, we spent $521 million on direct purchases from Aboriginal businesses. Since 1999, Suncor has spent just over $4.0 billion with Aboriginal businesses (as direct contractors and subcontractors), nearly half of which was spent since 2013.