3 Oil Demand How do oil sands fit in the picture Multiple credible sources have indicated oil demand growing through 2040 Oil use will continue beyond 2040 for lubricants, petrochemicals, long-distance travel and agriculture Oil sands…
4 Vast oil sands resource Canada has the third-largest potentially 3rd recoverable oil resource in the world Accounts for 10% of worlds gross oil resource Billion barrels of oil sands that can be potentially 165 recovered…
5 Oil sands Oil sands are a mixture of sand, water, clay and bitumen Bitumen is too viscous to be transported through pipeline without being diluted Oil sands reserves recoverable Oil sands reserves recoverable 20% through mining*…
6 Common oil sands extraction methods Steaming methods (in situ) Mining Cyclic Steam Stimulation (CSS) Steam Assisted Gravity Drainage (SAGD) High pressure steam injection into and Low pressure steam injection into upper well Oil…
7 Oil sands - mining and extraction 1 Mining Oil sands scooped out of mine and deposited into 400 ton trucks Surge bin 2 Ore preparation plant Bitumen-rich sand is ground in an ore preparation plant before being sent by…
8 Advancing extraction technology Bitumen froth (NFT and PFT feedstock) is typically 60% bitumen, 30% water and 10% fine solids Napthenic Froth Treatment (NFT) Paraffinic Froth Treatment (PFT) Solvents containing primarily…
9 Oil sands Upgrading The process of removing sediments and increasing the products hydrogen to carbon ratio Two Hydro-cracking Addition of hydrogen in presence of catalyst (adding hydrogen) upgrading processes Thermal-cracking…
10 Oil sands mining a manufacturing business Oil sands mining - Not an exploration business, focused on continued system optimization and cost reduction Manufacturing - Optimal way of transforming material into goods by integration…
11 SAGD extraction & process Firebag example Central Processing Facility (CPF) Emulsion production Bitumen Well pad Bitumen & water separation Upgrader and/or Process water refinery Wells pad Steam injection Steam Treated…
12 SAGD cost reduction history and enhanced future designs Structural cost reductions Next generation well pad design New Central Processing Facility As the extraction technique matures, continuous optimization of the SAGD…
13 Market access for oil sands production Pipeline Current and forecasted gross pipeline capacity1 Feeder lines Rail 750 TMPL 300 mbpd capacity1 Fort McMurray TMEP (Proposed) Edmonton +590 mbpd capacity2 Express, Platte…
14 Western Canadian L/H1 differential WTI-WCS differential a factor of both quality and location Royalty paid on bitumen Exposure Exposure production mitigated unmitigated Upgrading Sweet Influenced by Hardisty Oil sands…
15 Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual funds flow profiles2 capital rate costs cost risk factor Mining High Very low Low Medium Very low…
16 The next phase of oil sands value drivers Fort Hills Joslyn P Syncrude Synergies Capturing regional synergies through C Firebag In Situ MacKay River Syncrude In Situ C U Base Mine optimizing current…
17 Regional synergies for existing assets Suncor example 100% WI Fort Joint ownership Hills Regional synergy opportunities1 P Upgrader feedstock optionality Syncrude Turnaround planning optimization Joslyn C Unplanned…
18 Oil sands mining overcoming challenges 1960 1967 GCOS (Suncor) Beginning of oil sands mining in the 70s & 80s First oil sands mine production Unclear industry would survive Draglines & Bucket wheels adapted from mining…
19 In situ beginning of the technology wave1 Only 15 years of commercial SAGD Technology is the future of SAGD 1980 1984 SAGD process pilot at Increasing extraction temperature MacKay River UTF (underground test facility)…
20 Next generation in situ extraction Nsolv - Vaporized solvent gravity drainage EASE - Electromagnetically Assisted Solvent Extraction Vaporized solvent injected (injector well), heating and mobilizing bitumen Electrical energy…
21 Industry collaboration and innovation Suncor Energy Inc. Syncrude Nexen Canada Ltd. Alliance of 10 producers representing 90% of oil Imperial Oil 936 distinct technologies Teck Resources sands production Limited…
22 The oil sands advantage Long-life, low-decline resource Low operating and sustaining costs Increasingly carbon competitive Socially responsible Track record of innovation
23 Slide Notes Slide 12------------------------------------------------------------- Slide 19------------------------------------------------------------- (1) Expected benefits based on design specifications. (1) Represents possible…
Investor Relations contacts Steve Douglas David Burdziuk Valerie Roberts Ever Motis Vice President IR Director IR Senior Analyst IR Associate IR sdouglassuncor.com dburdziuksuncor.com vrobertssuncor.com emotissuncor.com Visit us…
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