Systems That Directly Impact the
Manufacturing Process and How
to Co-Exist In That Environment
C.C. (Cliff) Pedersen
Manager, Product Production Processes
Suncor Energy Inc.
Standards
Certification
Education & Training Manufacturing IT Forum
Publishing
Conferences & Exhibits
Cleveland Ohio
20-21 May 2008
Agenda
8000 Safety Moment
7000
$7,107
World Oil Resources
6000 Manufacturing Oil
5000 Suncor Energy
4000
Operational Excellence
3000
Wealth Generation
Conflict with IT
2000
$406 The Big Gap
1000
InterOperability
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Collaboration
Suncor Energy S&P 500 Questions
Based on $100 CDN invested March 18, 1992 when Suncor became publicly traded
* assumes reinvestment of dividends
Safety Moment – Dehydration increases RISK
The primary trigger of daytime fatigue and poor
performance is Dehydration:
Your body is 60% water
Your brain is 85% water, and has a narrow
tolerance of dehydration to stay at its peak
Your bodily functions lose ~8-10 cups/64-80
ounces of water/day (without exercise)
How much water should you drink ?
Divide your body weight in half
Add 12 to that number = # ounces per day
Example: 150 pound person = 150/2 = 75 + 12 = 87 oz
Beverages that leach water from the body (e.g. coffee, beer,
wine, etc.) do Not Count...!!
World Conventional Oil Reserves ~ 1 Trillion Barrels
1 Trillion Used; 1 (1.7?) Trillion Available; 1 Trillion (?) to be Found
1%
2%
3% Middle East
6% 4% Latin America
6% Africa
Former Soviet Bloc
12%
Asia & Australia
66% United States
Western Europe
Canada
But......., Replacement Rate = 1 barrel per 13 barrels consumed!!
World Total Oil Reserves ~ 5.5 Trillion Barrels
Including Heavy Oil & Bitumen
1%
2%
2%
Canada
3%
13% Latin America
41% Middle East
Former Soviet Bloc
United States
14%
Asia & Australia
24% Africa
Western Europe
However, the World is consuming ~80 Mbpd NOW; Soon >100 Mbpd
The New ‘Black Gold’
Alberta Oil Sands – A Vast Resource
Fort McMurray
Alberta area oil sands & heavy oil
Athabasca deposits contain 2.5 Trillion
barrels - 41% of world’s known
Peace River petroleum reserves (greater than
combined Middle East, United
States, Soviet Bloc, Western
Cold Europe, Australia, Asia, & Africa)
Lake
Edmonton
Alberta deposits cover 77,000 sq km
(~30,000 sq mi)
Calgary
Athabasca Deposit > 42,000 km2
890 Billion barrels in place
20% within 250 ft. of surface
30 B Mineable; 142 B In-situ
Global Crude Reserves - Recoverable
Billions of barrels of oil
300
250
200
150
100
50
0
Saudi Canada Iran Iraq Kuwait Venezuela Russia U.S.A.
Arabia
Source: Oil & Gas Journal Dec. 2007
Suncor Energy at a Glance
(Canadian, No majority shareholder)
• Integrated energy company – upstream, refining and
marketing, pipelines and wind power
• Market capitalization about $45 billion
Operating Areas
• Original and single largest investor in the
Athabasca oil sands – 40 years experience
• Best growth rate in the oil sands industry:
– current production capacity of 260,000 bpd
– increase capacity by 35% to 350,000 bpd in 2008
– increase capacity by 57% to 550,000 bpd in 2012
• More than 6,500 employees
• Sustainability: benefiting all stakeholders
“To be a unique and sustainable
energy company, dedicated to
vigorous growth in worldwide
markets through meeting or
exceeding the changing
expectations of our current and
future stakeholders”
Oil Sands, The Resource
- Bitumen - Easy to Find, Tough to Get Out!!
• Thick, sticky mixture of sand,
clay, water and bitumen: 8-9oAPI
• Suncor leases cover close to
2,000 square kilometers or about
1,200 square miles
• Remaining recoverable
resources in place to produce a
potential 15 billion* barrels of
crude oil
– Mining leases 6 billion barrels
– In-situ leases 9 billion barrels
* Suncor data includes proved plus probable reserves and contingent resources, as of December 31, 2006 which is not comparable to most competitors.
Suncor’s Athabasca Operations
- Land Position
Area extent: 460 sq mi
Independent estimate:
~ 7.5B barrels
10
Oil Sands - Mining
Oil Sands - Mobile Crushing
• Currently have one unit
up and running at 5,000
tonnes per hour
• Requires 24 months to
construct and three
months to implement
each new unit
• Capital is about $170
Million per unit
• Expect to have three units
up and running within
three years – about 50%
of mine feed
Suncor Mine – Move 1M Tons of ‘Dirt’/day
Oil Sands - Extraction
Oil Sands - In-situ
SAGD
Steam
Chamber Steam
Steam heats Assisted
oil sands Gravity
Drainage
Bitumen &
Water
Heated bitumen
flows to well
Suncor’s Firebag Site – Stages 1 & 2 producing
- Stage 3 in 2009
- Stages 4,5,6 in 2010-2012
Resource / Reserve Life Index
years
80
70
60
50
40
30
20
10
0
Suncor RDShell Chevron Exxon Mobil TOTAL BP
Resources / 2012 production capacity Proved reserves / 2006 production
All company data, except for Suncor is based on UBS Warburg data and represents crude oil reserves only.
Suncor data represents resources, which is not directly comparable.