The Canadian Oil Sands Suncor’s Experience
The Canadian Oil Sands – Suncor’s Experience
Topics
Overview of Oil Sands Operations : how water and energy are used in the operations
Growing a Sustainable Energy Company – Suncor’s Experience
Water Governance in Alberta
Overview of Oil Sands Operations
The Canadian Oil Sands – Suncor’s Experience
Suncor Operating Areas
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The Canadian Oil Sands – Suncor’s Experience
Oil Sands - the Resource
Thick, sticky mixture of sand, water and bitumen
Currently 35% of Canada’s 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.
The Canadian Oil Sands – Suncor’s Experience
Oil Sands -High Quality Leases
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The Canadian Oil Sands – Suncor’s Experience
Oil Sands - Mining
The Canadian Oil Sands – Suncor’s Experience
Steam flows tointerface andcondenses
SteamChamber
Bitumen &Water
SAGDIn-situprocess
Heated bitumenflows to well
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
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%
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
Energy Efficiency
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
InputsBitumen
Natural gas
Electricity
OutputsCrude Products
Electricity
By-products (Coke, Sulphur)
~ 80% conversion
Growing a Sustainable Energy Company – Suncor’s Experience
The Canadian Oil Sands – Suncor’s Experience
Sustainable Development - concept
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
Suncor’s vision of sustainability
“Suncor’s 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.”
The Canadian Oil Sands – Suncor’s Experience
Putting Suncor’s vision to workStrategic framework
Sustainable Energy CompanySustainable Energy Company
Environmental Quality
Environmental Quality
EconomicProsperityEconomicProsperity
SocialWell-Being
SocialWell-Being
OperationalExcellenceOperationalExcellence
Products &Services for the Future
Products &Services for the Future
Issues Management
Issues Management
ImprovedDecisionMaking
ImprovedDecisionMaking
Stakeholder Relations
Stakeholder Relations
OrganizationalCapability &Commitment
OrganizationalCapability &Commitment
Stakeholder ExpectationsStakeholder Expectations
•Customers•Shareholders•Employees
•Customers•Shareholders•Employees
•Communities•Governments•General public
•Communities•Governments•General public
Water Governance
The Canadian Oil Sands – Suncor’s Experience
Water for Life: Alberta’s 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
The Canadian Oil Sands – Suncor’s Experience
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)
The Canadian Oil Sands – Suncor’s Experience
Watershed Management - Partnerships
Water Council
Watershed Planning and Advisory Councils
4 Basin Management Plans in development 11 councils to be formed
Watershed Stewardship Groups
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
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
The Canadian Oil Sands – Suncor’s Experience
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