DOCSLIB.ORG

Suncor Energy – Annual Report 2018

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Suncor Energy – Annual Report 2018 ANNUAL REPORT 2018 Suncor Energy Inc. CONTENTS 2 The Suncor Advantage 4 Message to Shareholders from the Chief Executive Offcer 8 Message to Shareholders from the President and Chief Operating Offcer 12 2019 Corporate Guidance 13 Advisories 17 Management’s Discussion and Analysis 79 Management’s Statement of Responsibility for Financial Reporting 80 Management’s Report on Internal Control over Financial Reporting 81 Independent Auditor’s Report 83 Audited Consolidated Financial Statements and Notes 130 Supplemental Financial and Operating Information 154 Share Trading Information 155 Leadership and Board Members WE CREATE ENERGY FOR A BETTER WORLD 2 2018 ANNUAL REPORT Suncor Energy Inc. 2018 HIGHLIGHTS 732K BARRELS $10.2 BILLION of oil equivalent per day funds from operations Production Funds Flow (mboe/d) ($ millions) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 800 12 000 100 10 000 80 600 8 000 60 400 6 000 40 4 000 200 20 2 000 Exploration and Production 113.0 114.4 117.9 121.6 103.4 Discretionary free funds flow 4 5542 5561 7974 056 3 862 Oil Sands 421.9 463.4 504.9 563.7 628.6 Sustaining capital and dividends 4 5044 2504 1915 083 6 310 Total production 534.9 577.8 622.8 685.3 732.0 Total funds from operations 9 0586 8065 9889 139 10 172 WTI ($US/bbl) 93.0048.75 43.3550.95 64.80 $4.3 BILLION 8.2% RETURN operating earnings on Capital Employed Earnings Return on Capital Employed ($ millions) (%) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 6 000 10 8 4 000 6 2 000 4 0 2 Operating earnings (loss) 4 6201 465 (83)3 188 4 312 ROCE 7.5 0.5 0.4 6.7 8.0 Net earnings (loss) 2 699(1 995) 4454 458 3 293 ROCE excluding 8.6 0.6 0.5 8.6 8.2 major projects in progress This Annual Report contains forward-looking statements based on Suncor’s current expectations, estimates, projections and assumptions, as well as certain fnancial measures, namely operating earnings (loss), funds from operations, return on capital employed (ROCE), Oil Sands operations cash operating costs, Fort Hills cash operating costs, Syncrude cash operating costs, free funds fow and discretionary free funds fow, that are not prescribed by generally accepted accounting principles (GAAP). Refer to the Advisories sections of this Annual Report and Suncor’s Management’s Discussion and Analysis dated February 28, 2019 (MD&A). 2018 ANNUAL REPORT Suncor Energy Inc. 1 THE SUNCOR ADVANTAGE THE SUNCOR ADVANTAGE Suncor’s long-life, low-decline asset base, strong balance sheet and integrated model set us apart from our peers. These advantages are complemented by our approach to sustainability, technology and innovation, which will help us achieve our social goals, a 30% reduction in carbon emission intensity by 2030 and grow the cash fow from our business. Capitalizing on these differentiators has contributed to our industry-leading position and provides the foundation for increasing long-term returns to shareholders. A PROVEN INTEGRATED MODEL From the ground to the gas station, we optimize profts through each link in the value chain. Our fexible model allows us to capture the shift in value between operating segments during periods of market volatility and limits Suncor’s exposure to crude differentials, with a signifcant portion of bitumen production being upgraded to higher priced light oil and refned products. The company’s midstream assets and pipeline commitments, strategically acquired with the future in mind, provide operational fexibility through secured market access, including to the U.S. Gulf Coast and other international markets. From the ground to the Oil Sands gas station, we optimize profts through each link in the value chain Fort McMurray upgrading Exploration facilities and Production Reÿning network Retail Wholesale RESERVES BASE Our focus on operational excellence allows us 7.6 BILLION BOE to unlock the full value of our resources. + YEARS proved + probable For more information on our reserves base, 28 4.7 BILLION BOE refer to our Annual Information Form dated proved + probable reserves life proved February 28, 2019. 2 2018 ANNUAL REPORT Suncor Energy Inc. FINANCIAL STRENGTH We aim to deliver competitive, sustainable and increasing returns to our shareholders, by focusing on capital discipline, operational Our continued pursuit of excellence, and long-term proftable growth. We have returned value to shareholders through consistent dividend growth, with operational excellence resulted 2018 marking the sixteenth consecutive year we increased our in over $10 billion in funds from annual dividend, while also signifcantly increasing our share operations for the year, marking repurchase program. This demonstrates confdence in our ability to generate cash fow across a wide range of business environments a new record for the company and commitment to returning it to shareholders. $5.4 BILLION $3.9 BILLION returned to shareholders in 2018 through in discretionary free funds fow demonstrates dividends and share repurchases our capital discipline and fexibility Shareholder Returns Funds from Operations ($ millions) ($ millions) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 6 000 8 12 000 5 000 10 000 6 4 000 8 000 3 000 4 6 000 2 000 4 000 2 1 000 2 000 Share repurchases 1 671 43 0 1 413 3 053 Capital expenditures 6 5306 220 6 582 5 822 5 250 Dividends 1 4901 6481 8772 124 2 333 Sustaining capital and dividends 4 5044 250 4 191 5 083 6 310 Dividend + buyback yield (%) 5 3 3 5 7 Funds from operations 9 0586 806 5 988 9 139 10 172 SUSTAINABILITY, TECHNOLOGY AND INNOVATION Sustainability is about seeing the big picture and working together to enhance social and economic benefts while minimizing the environmental impacts of resource development. We believe technology and innovative thinking are critical to ensuring our resilience in a lower carbon future. ENVIRONMENT We’re advancing reclamation with our new tailings treatment process, Permanent Aquatic Storage Structure (PASS). In 2018, PASS doubled our tailings treatment to 165% of total tailings produced that year, ultimately drawing down our inventory. $700 MILLION spent with Indigenous businesses in 2018 SOCIAL We sought early and ongoing engagement with Indigenous stakeholders to help shape our Demonstration Pit Lake (DPL) pilot. We continue to collaborate with local communities on TECHNOLOGY In 2018, we increased deployment of Autonomous research, implementation and monitoring. Haul Systems (AHS), advanced a number of greenhouse gas reduction pilots at our in situ sites, and jointly moved forward on GOVERNANCE Suncor’s climate-related disclosures are well- the Water Technology Development Centre (WTDC), expected to aligned with the Task Force on Climate-Related Disclosure (TCFD) be operational in the second quarter of 2019. recommendations, and we look forward to working with the task force to evolve climate risk disclosure so it meets the needs For more information on our sustainable development, refer to of both companies and investors. the 2018 Report on Sustainability. 2018 ANNUAL REPORT Suncor Energy Inc. 3 MESSAGE TO SHAREHOLDERS MESSAGE TO SHAREHOLDERS Steve Williams Chief Executive Offcer During my 17 years with Suncor – including the past seven as president and chief executive offcer – investors and other stakeholders have often heard me comment: “judge us on what we do, not just on what we say.” Making promises is easy – delivering results is much harder. Our laser focus on results “ and resilience was evident throughout 2018, a year that will help shape the future of our company for decades to come. This past September, Suncor celebrated the offcial grand opening Our integrated business model also continued to deliver of Fort Hills, a development that exemplifes “the new face of signifcant results in 2018 – minimizing Suncor’s exposure to the oil sands.” heavy and light crude differentials that dramatically widened over the course of the year. Fort Hills will use new technologies such as autonomous haul systems and paraffnic froth treatment, resulting in lower With the completion of Fort Hills and Hebron, a focus on operating costs and a greenhouse gas emissions intensity which operational excellence and the ongoing deployment of new is on par with the average refned barrel in North America – technology to improve our operations, we are positioned to a signifcant step forward for our industry. Fort Hills also refects deliver reliable cash fow growth for years. Suncor’s evolving relationship with Indigenous Peoples through Integral to our success, and our aspirations, is Suncor’s the equity partnership we formed with the Fort McKay and long-standing commitment to being a leader in sustainability. Mikisew Cree First Nations on the East Tank Farm Development – By continuing to invest in technology and innovation, Suncor a landmark for First Nation investment in Canada. is positioned to be a progressive, cost-effcient and carbon Poised to deliver energy the world needs and be a key supplier competitive energy provider of choice for decades. for the next 50 years, Fort Hills is one of many reasons Suncor shareholders and other stakeholders can look forward with confdence and optimism. 4 2018 ANNUAL REPORT Suncor Energy Inc. 2018: INTEGRATION PROVES INVALUABLE DURING VOLATILE YEAR We continued to live through interesting times in 2018, a year These strategic decisions also lead to positive results for our when Suncor’s strategy and business model demonstrated value shareholders. In addition to unprecedented oil differentials, 2018 was once again. a year when Suncor underwent the largest maintenance turnaround program in our history, including signifcant planned refnery and The integration of our upstream oil sands operations, upgrader maintenance. Despite these challenges, we continued to: downstream refning and marketing assets, as well as midstream logistics, allowed us to remain fexible, resilient and proftable generate record levels of funds even as western Canadian oil differentials widened dramatically through most of 2018.
Load more

Recommended publications
  • Athabasca Oil Sands Project Acquisition March 9, 2017
    Athabasca Oil Sands Project Acquisition March 9, 2017 ATHABASCA OIL SANDS PROJECT ACQUISITION March 9, 2017 PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT. Agenda • Transaction ‒Significant Opportunity ‒Overview & Metrics ‒Operational Impact • Asset Overview ‒Summary & Upside Opportunities ‒Mines ‒Upgrader ‒Infrastructure Pipelines ‒Quest Carbon, Capture, & Storage (“CCS”) ‒Other Oil Sands Assets • Opportunities to Create Value • Finance ‒Summary of Financial Impact ‒Financing Plan • Conclusion CNQ 2 1 Athabasca Oil Sands Project Acquisition March 9, 2017 Forward Looking Statements Certain statements relating to Canadian Natural Resources Limited (the “Company”) in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements can be identified by the words “believe”, “anticipate”, “expect”, “plan”, “estimate”, “target”, “continue”, “could”, “intend”, “may”, “potential”, “predict”, “should”, “will”, “objective”, “project”, “forecast”, “goal”, “guidance”, “outlook”, “effort”, “seeks”, “schedule”, “proposed” or expressions of a similar nature suggesting future outcome or statements regarding an outlook. Disclosure related to expected future commodity pricing, forecast or anticipated production volumes, royalties, operating costs, capital expenditures, income tax expenses and other guidance provided, constitute forward-looking statements. Disclosure
    [Show full text]
  • Explaining Variation in Oil Sands Pipeline Projects
    Canadian Journal of Political Science (2020), 1–20 doi:10.1017/S0008423920000190 RESEARCH ARTICLE/ÉTUDE ORIGINALE Explaining Variation in Oil Sands Pipeline Projects Amy Janzwood* Department of Political Science, University of Toronto, 100 St. George, Toronto ON, M5S 3G3 *Corresponding author. Email: [email protected]. Abstract While the vast majority of oil pipeline projects in Canada have been successfully built, several mega oil sands projects within and passing through Canada have been cancelled or significantly delayed. This article explains why these delays and cancellations have occurred. A systematic cross-case analysis is used to provide insight into the changing politics of oil sands pipelines. Qualitative comparative analysis (QCA) is used to identify combinations of causal conditions that co-occur across cases of proposed new oil pipelines and pipeline expansion projects. The pipeline projects were proposed to the federal regulator—the National Energy Board—between 2006 and 2014. The QCA reveals that social mobilization and major regulatory barrier(s) are necessary conditions in explaining variation in pipeline project outcomes. The analysis of sufficiency reveals more complex configurations of conditions. This article contributes to the literature on the politics of oil sands pipelines by using a comparative approach to identify the impacts of socio-polit- ical and legal dynamics that have emerged around pipelines in the last 15 years. Résumé Cet article explique les raisons pour lesquelles plusieurs propositions récentes de méga- pipelines à l’intérieur du Canada et passant à travers le pays ont été annulées ou considérablement retardées. Alors que la grande majorité des projets d’oléoducs ont été construits avec succès, plusieurs mégaprojets de sables bitumineux ont été mis de côté ou ont subi des retards importants.
    [Show full text]
  • Facts About Alberta's Oil Sands and Its Industry
    Facts about Alberta’s oil sands and its industry CONTENTS Oil Sands Discovery Centre Facts 1 Oil Sands Overview 3 Alberta’s Vast Resource The biggest known oil reserve in the world! 5 Geology Why does Alberta have oil sands? 7 Oil Sands 8 The Basics of Bitumen 10 Oil Sands Pioneers 12 Mighty Mining Machines 15 Cyrus the Bucketwheel Excavator 1303 20 Surface Mining Extraction 22 Upgrading 25 Pipelines 29 Environmental Protection 32 In situ Technology 36 Glossary 40 Oil Sands Projects in the Athabasca Oil Sands 44 Oil Sands Resources 48 OIL SANDS DISCOVERY CENTRE www.oilsandsdiscovery.com OIL SANDS DISCOVERY CENTRE FACTS Official Name Oil Sands Discovery Centre Vision Sharing the Oil Sands Experience Architects Wayne H. Wright Architects Ltd. Owner Government of Alberta Minister The Honourable Lindsay Blackett Minister of Culture and Community Spirit Location 7 hectares, at the corner of MacKenzie Boulevard and Highway 63 in Fort McMurray, Alberta Building Size Approximately 27,000 square feet, or 2,300 square metres Estimated Cost 9 million dollars Construction December 1983 – December 1984 Opening Date September 6, 1985 Updated Exhibit Gallery opened in September 2002 Facilities Dr. Karl A. Clark Exhibit Hall, administrative area, children’s activity/education centre, Robert Fitzsimmons Theatre, mini theatre, gift shop, meeting rooms, reference room, public washrooms, outdoor J. Howard Pew Industrial Equipment Garden, and Cyrus Bucketwheel Exhibit. Staffing Supervisor, Head of Marketing and Programs, Senior Interpreter, two full-time Interpreters, administrative support, receptionists/ cashiers, seasonal interpreters, and volunteers. Associated Projects Bitumount Historic Site Programs Oil Extraction demonstrations, Quest for Energy movie, Paydirt film, Historic Abasand Walking Tour (summer), special events, self-guided tours of the Exhibit Hall.
    [Show full text]
  • Oil Sands Performance Report 2015
    OIL SANDS PERFORMANCE REPORT 2015 Shell Canada Ltd. April 22, 2016 OIL SANDS PERFORMANCE REPORT 2015 OIL SANDS PERFORMANCE REPORT 2015 INTRODUCTION This is Shell Canada’s seventh consecutive report on performance in our oil sands operations. We publish this update annually to share detail on our efforts and progress in developing Alberta’s oil sands in an economically, socially and environmentally responsible way. This report is intended for those who have interest in our performance and a desire to better understand oil sands development and its significant importance to Shell and to Canada. Further information about our oil sands operations is available at www.shell.ca/oilsands ABOUT THE DATA The data presented here covers the areas of safety, environment, reclamation and community and provides information on Shell’s operating performance for 2015 for: ■ Muskeg River and Jackpine Mines; ■ Scotford Upgrader; ■ Quest Carbon Capture and Storage Facility; and ■ Peace River and Cliffdale In Situ operations Unless otherwise noted, all data presented for the Muskeg River Mine, Jackpine Mine, Scotford Upgrader and Quest Facility is in reference to total Athabasca Oil Sands Project (AOSP) performance before division amongst joint venture owners. The AOSP is a joint venture operated by Shell, and owned among Shell Canada Energy (60%), Chevron Canada Limited (20%), and Marathon Oil Canada Corporation (20%). Data presented for In Situ operations is 100% Shell share. All monetary amounts referred to in the data are in Canadian dollars unless otherwise noted. SHELL CANADA LTD. | 2 OIL SANDS PERFORMANCE REPORT 2015 SAFETY Safety is a core value we work hard to instill in our people — both employees and contractors.
    [Show full text]
  • Canada's Natural Gas and Oil Emissions
    CANADA’S NATURAL GAS AND OIL EMISSIONS: Ongoing Reductions, Demonstrable Improvement GREENHOUSE GAS EMISSIONS AND CANADA’S NATURAL GAS AND OIL INDUSTRY Canada’s Natural Gas and Oil Emissions: Ongoing Reductions, Demonstrable Improvement Contents Emissions: Ongoing Reductions, Demonstrable Improvement . E3 Industry Overview . E5 Technology Overview: The Path to Emissions Reduction . E7 Technology Performance to Date . E9 Near-Term / Potential Technologies . E22 Ongoing Collaboration and Research . E26 Emissions Intensity Performance Data . E29 Natural Gas, Natural Gas Liquids and Condensate . E30 Oil Sands In Situ . E31 Oil Sands Mining. E32 Offshore . E33 Comparable Emissions Performance and Data Quality . E34 E METHODOLOGY IN SITU OIL MINED OIL NATURAL GAS OFFSHORE TECHNOLOGY RESEARCH 2 Emissions: Ongoing Reductions, Demonstrable Improvement E METHODOLOGY IN SITU OIL MINED OIL NATURAL GAS OFFSHORE TECHNOLOGY RESEARCH 3 il and natural gas will continue to be an important part of the world’s energy mix for the foreseeable future . Supplying affordable, reliable and cleaner energy to a Supplying affordable, Ogrowing global population will continue to be the goal of Canada’s upstream energy industry . reliable and cleaner Climate change is a global challenge that requires global energy to a growing perspectives and solutions . Advancing greenhouse gas (GHG) emissions reduction is critical to realizing the vision for Canada global population will to be a global natural gas and oil supplier of choice . continue to be the goal Emissions reduction performance, including emission intensity, is increasingly the basis for policies such as low-carbon of Canada’s upstream fuel regulations, carbon pricing, specific reduction targets energy industry. and emission caps . It’s used to inform funding decisions by governments, funding agencies and investors .
    [Show full text]
  • Creating Sustainable
    CREATING SUSTAINABLE BuildingVALUE on our Strong Foundation 20 Annual Report MEG ENERGY MEG ENERGY | Annual Report | 2018 1 01 Creating Sustainable Value MEG Letter 02 to Shareholders ENERGY Operating and 05 Financial Highlights CO R P. Management’s MEG Energy is a Canadian energy company focused 06 Discussion and Analysis on sustainable in situ development and production in the southern Athabasca oil sands region of Alberta. Report 48 of Management Driven by innovation, MEG is changing the way oil sands are developed and operated. With proven, Independent proprietary technology, we are dramatically reducing 49 Auditor’s Report our energy and water use, capital and operating costs, and greenhouse gas intensity. Consolidated 52 Financial Statements MEG is creating new possibilities for sustainable development in the Canadian oil sands. Notes to Consolidated 56 Financial Statements TSX | MEG 2 MEG ENERGY | Annual Report | 2018 At MEG we are getting back to the basics of value creation and enhanced capital discipline. “This means that we will prioritize balance sheet strength over growth in the coming years, commit to prudently manage our business through commodity cycles and advance profitable development with the goal of long-term sustainable returns. Supported by our strong foundation of 100,000 barrels per day of base production, low sustaining costs, a 40-plus year world-class resource, and proven proprietary technology - we continue our journey with a new mindset and a refreshed focus on putting shareholders first. “ MEG ENERGY | Annual Report | 2018 1 To Our Shareholders A message from the President and CEO For MEG, 2018 was a year of record operational performance, as well as much change and challenge.
    [Show full text]
  • Low Resistivity Bitumen Pay, Pike Field, Athabasca Oil Sands Colleen Flynn Devon Canada
    Low Resistivity Bitumen Pay, Pike Field, Athabasca Oil Sands Colleen Flynn Devon Canada E. Matthew Caddel BP Canada Energy Group ULC Summary Low resistivity reservoir (less than 10 Ωm deep resistivity) pay zones are observed in a portion of Devon’s Pike lease in northeastern Alberta, Canada. Observations suggest low-resistivity is due in part to high-salinity formation waters, result of mixing with saline Devonian formation fluids. These pay zones occur immediately west of the Prairie Evaporite dissolution edge and are associated with an erosional feature on the pre-Cretaceous unconformity. Additionally, the geometry of the pay also raises questions about migration pathways and highlights the possibility of charging via the underlying Devonian strata. Introduction The Devon-BP Pike field is located in the southern part of the Athabasca oil sands deposit in TWP 73-75 and RNG 4-7W4 (Figure 1). Bitumen pay at Pike occurs within the McMurray and Wabiskaw Formations. Locally there is an area of McMurray bitumen saturated sand that appears wet on deep resistivity wireline logs and has resistivities of <10 Ωm (Figure 2). These resistivity values are roughly the same reading as wet zones elsewhere on the Pike lease. Core observations of both the low resistitivy pay interval and laterally adjacent wet zones confirms these trends. In addition to the low-resistivity pay, the other curious characteristic of this pay is that it occurs where the pre-Cretaceous unconformity is at the structurally lowest part of the lease. Wet sands occurs laterally adjacent and connected to the low-resistivity pay. This leads us to two questions: 1) what is causing the low resistivity response in the pay zone? and 2) what is causing the geometry of the pay interval where the low resistivity bitumen is mapped? Devon - Internal Theory and/or Method While the mineralogy of the McMurray Formation sands is consistently quatrzose within Pike, the low resistivity response in the pay zone has to be either a fluid or minerological response.
    [Show full text]
  • View Annual Report
    90045conD1R1.cv:90045conD1R1 3/6/09 6:47 PM Page C1 ConocoPhillips 2008 www.conocophillips.com 2008 Annual Report Annual Report Managing Global Challenges 90045conD1R1.cv:90045conD1R1 3/6/09 2:32 PM Page C2 Financial Highlights . .1 Corporate Staffs . .21 Stockholder Information Letter to Shareholders . .2 Financial and Operating Results . .28 Financial Review . .6 Directors and Officers . .110 Worldwide Operations . .8 Glossary . .112 Annual Meeting Annual Certifications Operating Review . .10 ConocoPhillips’ annual meeting of stockholders will be held: ConocoPhillips has filed the annual certifications required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 as exhibits Wednesday, May 13, 2009 Omni Houston Hotel Westside 31.1 and 31.2 to ConocoPhillips’ Annual Report on Form 10-K, as filed Who We Are Our Theme 13210 Katy Freeway, Houston, Texas with the U.S. Securities and Exchange Commission. Additionally, in 2008, James J. Mulva, chairman and chief executive officer, submitted Notice of the meeting and proxy materials are being sent to an annual certification to the New York Stock Exchange (NYSE) Our Company Managing Global all stockholders. stating that he was not aware of any violation of the NYSE corporate ConocoPhillips is an international, integrated energy company. Challenges governance listing standards by the company. Mr. Mulva will submit 2008 Annual Report Direct Stock Purchase and Dividend Reinvestment Plan It is the third-largest integrated energy company in the United Like the entire energy industry, Managing Global his 2009 annual certification to the NYSE no later than 30 days after States based on market capitalization and oil and natural gas proved ConocoPhillips was impacted Challenges ConocoPhillips’ Investor Services Program is a direct stock purchase the date of ConocoPhillips’ annual meeting of stockholders.
    [Show full text]
  • Enbridge's Energy Infrastructure Assets
    Enbridge’s Energy Infrastructure Assets Last Updated: Aug. 4, 2021 Energy Infrastructure Assets Table of Contents Crude Oil and Liquids Pipelines .................................................................................................... 3 Natural Gas Transmission Pipelines ........................................................................................... 64 Natural Gas Gathering Pipelines ................................................................................................ 86 Gas Processing Plants ................................................................................................................ 91 Natural Gas Distribution .............................................................................................................. 93 Crude Oil Tank Terminals ........................................................................................................... 96 Natural Gas Liquids Pipelines ................................................................................................... 110 NGL Fractionation ..................................................................................................................... 111 Natural Gas Storage ................................................................................................................. 112 NGL Storage ............................................................................................................................. 119 LNG Storage ............................................................................................................................
    [Show full text]
  • 2020 Annual Report
    2020 Annual Report CONTENTS II To our shareholders IV Positioning for a lower-carbon energy future VI Energy for a growing population Scalable technology solutions VIII Providing energy and products for modern life IX Progressing advantaged investments X Creating value through our integrated businesses XII Upstream XIV Downstream XV Chemical XVI Board of Directors 1 Form 10-K 124 Stock performance graphs 125 Frequently used terms 126 Footnotes 127 Investor information ABOUT THE COVER Delivery of two modules to the Corpus Christi Chemical Project site in 2020. Each module weighed more than 17 million pounds, reached the height of a 17-story building, and was transported more than 5 miles over land. Cautionary Statement • Statements of future events or conditions in this report are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; planned capital and cash operating expense reductions and efficiency improvements, and ability to meet or exceed announced reduction objectives; future reductions in emissions intensity and resulting reductions in absolute emissions; carbon capture results; resource recoveries; production rates; project plans, timing, costs, and capacities; drilling programs and improvements; and product sales and mix differ materially due to a number of factors including global or regional changes in oil, gas, or petrochemicals prices or other market or economic conditions affecting the oil, gas, and petrochemical industries; the severity, length and ultimate
    [Show full text]
  • Tar Sands Crude Oil - Health Effects of a Dirty and Destructive Fuel (PDF)
    NRDC: Tar Sands Crude Oil - Health Effects of a Dirty and Destructive Fuel (PDF) FEBRUARY 2014 NRDC ISSUE BRIEF IB:14-02-B Tar Sands Crude Oil: Health Effects of a Dirty and Destructive Fuel S yncrude upgrader, Fort McMurray © Julia Kilpatrick, Pembina yncrude upgrader, Three recent studies confirm that tar sands processing near Fort McMurray and Edmonton, Alberta is resulting in the release of cancer-causing chemicals. I nstitute he boreal forest in Northern Canada lies atop massive tar sands deposits that are roughly the size of Florida. Crude oil produced from these tar sands is one of the world’s dirtiest and most environmentally Tdestructive sources of fuel. Today, energy companies in Canada are actively developing this dirty fuel and have plans to triple production in the coming years. As tar sands is strip-mined and drilled from beneath the boreal forest of Alberta, Canada, greater volumes of tar sands–derived crude oil will be transported through North America’s communities. With more tar sands flowing through pipelines, moving on railcars, and being processed at refineries, there is mounting evidence that people and communities in the vicinity of tar sands activity face substantial health and safety risks. This report highlights a growing body of scientific research, and news reports about people directly impacted, showing that serious health risks and problems are arising all along this tar sands network, from northern Canada to refineries in California, the Gulf Coast, the Midwest and the Rocky Mountains, as well as from accidents and spills. Despite this deepening danger, to date, state and federal governments have done too little to address this threat to the public’s health.
    [Show full text]
  • Alberta Oil Sands Industry Quarterly Update
    ALBERTA OIL SANDS INDUSTRY QUARTERLY UPDATE WINTER 2013 Reporting on the period: Sep. 18, 2013 to Dec. 05, 2013 2 ALBERTA OIL SANDS INDUSTRY QUARTERLY UPDATE Canada has the third-largest oil methods. Alberta will continue to rely All about reserves in the world, after Saudi to a greater extent on in situ production Arabia and Venezuela. Of Canada’s in the future, as 80 per cent of the 173 billion barrels of oil reserves, province’s proven bitumen reserves are the oil sands 170 billion barrels are located in too deep underground to recover using Background of an Alberta, and about 168 billion barrels mining methods. are recoverable from bitumen. There are essentially two commercial important global resource This is a resource that has been methods of in situ (Latin for “in developed for decades but is now place,” essentially meaning wells are gaining increased global attention used rather than trucks and shovels). as conventional supplies—so-called In cyclic steam stimulation (CSS), “easy” oil—continue to be depleted. high-pressure steam is injected into The figure of 168 billion barrels TABLE OF CONTENTS directional wells drilled from pads of bitumen represents what is for a period of time, then the steam considered economically recoverable is left to soak in the reservoir for a All about the oil sands with today’s technology, but with period, melting the bitumen, and 02 new technologies, this reserve then the same wells are switched estimate could be significantly into production mode, bringing the increased. In fact, total oil sands Mapping the oil sands bitumen to the surface.
    [Show full text]