The Canadian Oil Sands Suncor

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The Canadian Oil Sands Suncors Experience
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Topics

• Overview of Oil Sands Operations how water and
  energy are used in the operations
• Growing a Sustainable Energy Company Suncors
  Experience
• Water Governance in Alberta

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Overview of Oil Sands Operations
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Suncor Operating Areas
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Oil Sands - the Resource

• Thick, sticky mixture of sand, water and bitumen
• Currently 35 of Canadas oil production growth
  projection to 68 by 2010
• Suncor leases cover 1,800 square kilometers or
  1,118 square miles
• Reserves and resources in place to produce a
  potential 14 billion barrels of crude oil

Suncor data includes proved plus probable
reserves and recoverable resources, as of
December 31, 2005 which is not comparable to most
competitors.
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Oil Sands -
High Quality Leases
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Oil Sands - Mining
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Steam flows tointerface andcondenses
SAGDIn-situprocess
Steam Chamber
Bitumen Water
Heated bitumenflows to well
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Water An Essential Resource

• Water is used to convert oil sands into useable
  oil products
• Hot water separation process
• Transportation medium
• Thermal transfer (heating and cooling)
• Void replacement in reservoir
• Potable and sewage systems
• High degree of recycle, in excess of 75 for
  mines, 95 for in-situ
• long term retention through water capture in the
  void space and deep-well disposal of waste waters
• Surface mining uses 3-4 m3 water /m3 oil product,
  predominantly from Athabasca River
• Closer to 2 m3/m3 for mature plants
• In-situ less than 1 m3/m3 for mature
  operations, largely groundwater

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Water Regional Concerns

• Water Quantity
• Cumulative withdrawal from surface water bodies
• In stream flow needs low flow during winter
  period
• Water Quality
• Discharge from reclaimed landscape
• Regional Groundwater information not complete
• Potable aquifers
• Deep well disposal

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Current Net Licensed Water Allocation in the
Athabasca Basin
User of mean annual flow
Existing non-oil sands 0.7
Existing Approved Oil Sands 1.6
Planned Oil Sands 1.3
TOTAL 3.6
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Energy Inputs in the development of Oil Sands

• Development is energy intensive
• Natural gas heating, steam generation, power
  generation
• Electricity lighting, pumps, motors, buildings
• Diesel mobile fleet
• Coke by-product is also used as fuel supply
• Co-generation is natural fit Suncor is net
  exporter of electricity
• Mobile fleet fuels generated on site

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Energy Efficiency
Outputs Crude Products Electricity By-products
(Coke, Sulphur)
Inputs Bitumen Natural gas Electricity
80 conversion

• Energy efficiency technology, heat integration
  key levers to improving performance, reducing
  emissions
• Intensity measured as energy use per unit of
  production is decreasing
• 1996 9.9 (gigajoules/m3 production)
• 2000 8.7
• 2004 7.8

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Growing a Sustainable Energy Company Suncors
Experience
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Sustainable Development - concept
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Strategic drivers for sustainable development

• stakeholder expectations(economic,
  environmental, social)
• shareholder activism
• increased investor interest
• need for integrated view of business strategy
• earning societal consent to operate/grow business
• competitive advantage

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Suncors vision of sustainability

• Suncors vision is to be a unique and
  sustainable energy company, dedicated to vigorous
  growth by meeting the changing expectations of
  our current and future stakeholders.

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Putting Suncors vision to workStrategic
framework
Sustainable Energy Company
Environmental Quality
Economic Prosperity
Social Well-Being
Stakeholder Expectations

• Customers
• Shareholders
• Employees

• Communities
• Governments
• General public

Operational Excellence
Products Services for the Future
Issues Management
Improved Decision Making
Stakeholder Relations
Organizational Capability Commitment
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Water Governance
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Water for Life Albertas Strategy for
Sustainability

• Finalized in 2003 after extensive public
  consultation
• Reaffirmed 3 goals and outcomes for Alberta
• safe, secure drinking water
• healthy aquatic ecosystems
• reliable, quality water supplies for sustainable
  economy
• 3 key directions identified
• knowledge and research
• partnerships
• water conservation

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Strategic Changes in Water for Life Strategy

• From water management to watershed management
• From traditional regulator to shared
  governance/shared responsibility
• Water Conservation goal 30 improvement by 2015
  (baseline 2005)

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Watershed Management - Partnerships

• Water Council
• Watershed Planning and Advisory Councils
• 4 Basin Management Plans in development
• 11 councils to be formed
• Watershed Stewardship Groups

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Multistakeholder Engagement specific to Oil Sands
Region

• Cumulative Environment Management Association
  (CEMA)
• multi-stakeholder organization responsible for
  researching and making recommendations on the
  cumulative environmental impact of development in
  the Wood Buffalo Region.
• Water quantity and quality Watershed integrity
• Reclamation, end-pit-lakes, wetlands
• Regional Aquatic Monitoring Program (RAMP)
• joint environmental monitoring program that
  assesses the health of rivers and lakes in the
  Oil Sands Region of northeastern Alberta

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Multistakeholder Engagement specific to Oil Sands
Region

• Wood Buffalo Environment Association (WBEA)
• The mission of the Wood Buffalo Environmental
  Association is to monitor and provide accurate,
  credible, transparent and understandable
  information on environmental quality in the Wood
  Buffalo Region
• Operates network of air-monitoring stations
• Terrestrial effects monitoring

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Additional information from

• www.suncor.com
• www.cemaonline.ca
• www.wbea.org
• www.ramp-alberta.org
• www.centreforenergy.com
• www.capp.ca
• www.eub.gov.ab.ca
• www.gov.ab.ca