Tag: Suncor Energy

Categories
Alberta Canada Economic Ft Mac

Is Suncor Energy Playing on Fear to Succeed in Takeover Bid? Canadian Oil Sands Says Yes!

Suncor Energy, fear

Canadian Oil Sands is accusing Suncor Energy of playing on fear in an attempt to succeed in their hostile takeover bid. The accusations started flying after Suncor sent a letter to shareholders of COS urging these individuals to accept the bid in spite of the fact that the COS board of directors firmly rejected the bid. The bid will expire in a few weeks and the letter may have been designed to speed things up and resolve the bid before it ends. A statement released by COS CEO Ryan Kubik stated “If Suncor had confidence in the merits of its bid, it wouldn’t be trying to ram it through by challenging our Shareholder Rights Plan. It would not need to try to steal time for a decision from our shareholders. Suncor is clearly not listening when our shareholders tell them the same thing they are saying to us — this bid won’t fly. Shareholders don’t need to do anything to reject this unwelcome and underwhelming bid. In fact, save yourself the time and hang up when Suncor or one of its paid brokers call.”

The statement continued by saying “As recently demonstrated in COS’ third quarter results, Syncrude is entering a new era of lower cost operations, COS can remain resilient through this period of low oil prices. Suncor wants to take value out of your pocket and put it into theirs.” Only time will tell whether the bid by Suncor Energy is successful, and whether the fear tactics that COS is accusing the company of work. What do you think of the hostile takeover bid?

Categories
Alberta Economic Ft Mac Politics

The Fort Hills Commuter Policy Has Been Reversed by Suncor Energy

Suncor Energy, commuter policy

Suncor Energy previously set a commuter only policy for the new Fort Hills project and this had some local residents, businesses, and politicians in Wood Buffalo very upset. The company has announced that they have reversed this policy, and the reversal may have been the result of push back from the community that the company was getting for their decision. When the controversial commuter policy was first announced Suncor defended it as necessary but they have done a complete turnaround. Suncor Energy executive vice-president of upstream operations Mark Little met with municipal councilors and the change was released the next morning in an email from the company. The email stated “There’s no community on the surface of this earth that’s more important to us than Fort McMurray. We’re hoping and encouraging any and all Fort McMurray residents to apply for any and all jobs in the region and join Suncor.”

The reversal f the commuter policy by Suncor Energy was explained by company spokesperson Sneh Seetal “We want, and absolutely need, qualified people regardless of where they are located. I understand people in Fort McMurray felt they were turned away. We apologize, because that was not our intention. If a Fort McMurray resident feels they were turned away, I would ask they would reapply or attend the career fair.” Brian Jean, the Wildose leader, sent Suncor a letter asking them to reconsider the commuter policy for Fort Hills. After the policy was reversed Jean said “Suncor’s an awesome part of our community, but it just seemed very contrary to the interests of what was in the interests of the local economy. I’ve always believed it was important to consider locals first, Albertans second and other Canadians third.”

Categories
Alberta Economic Ft Mac

Suncor Energy Sets Commuter Policy for Fort Hills Project

Fort Hills project, Suncor Energy

A commuter policy set by Suncor Energy for the Fort Hills project has some area residents concerned, but the energy company has defended this policy as one that is necessary given the location of the project. An estimated 2,000 jobs will be created but the Fort Hills project is very remotely located, situated near the start of the Fort Chipewyan winter road. This makes a daily commute to the work site almost impossible. Instead Suncor has set a camp based policy which flies workers in and out on a rotating schedule. This means that Fort McMurray residents will probably not find employment at this project even though the area is one of the closest communities to the location.

Sneh Seetal, a spokesperson for Suncor Energy, defended the commuter policy on the Forest Hills project as a necessary one. “It’s not practical or safe for daily commuting. We aren’t set up for that type of commuting.” Council members and business owners in Fort McMurray have expressed concern over the impact that the commuter policy will have on local residents who are searching for employment. One council member, Colleen Tatum, won the last election in part because of her dedication to reducing the commuters to local work camps. Tatum told reporters that she has had an overwhelming number of local residents contact her about this, however Tatum also acknowledged that employment hiring decisions by independent companies can not be controlled by the municipality. “If there’s some kind of barrier to overcome – like if there is a problem with the Fort McMurray airport layout or if they need a central bus hub built – if we could get clarification to what it will take to hire local, we would welcome that. I’m aware Fort Hills would require people to live in camps, but I don’t know why it’s so bad to let someone commute to the camps from Fort McMurray.”

Categories
Ft Mac Health Politics

Suncor Energy Pushes Their Voyageur Project in Spite of Resident Concerns

Voyageur project, Suncor Energy

During two different open house meetings Suncor Energy struggled to get the support of local residents for the Voyageur project but that has not stopped the company from pushing ahead and trying to get people to eventually warm up to the idea. Voyageur would be situated just kilometres from the city limits, and some think that this is too close to home. The project is expected to produce a quarter of a million barrels of bitumen per day, and should have a lifespan of around 28 years. A tailing pond will be needed and if the project is given the green light the mine should become operational around 2024. Voyageur is expected to replace the North Steepbank Extension mine once the bitumen deposits have been completely depleted and the mine can no longer operate.

In the last few weeks Suncor Energy has held presentations at both MacDonald Island Park and the Suncor Business Centre in the hopes of gaining support for the Voyageur project from the local community but all of these meetings had few in attendance. Residents are concerned about how close the operations will be though and have voiced concerns over this fact. Suncor Energy oilsands development manager Dean Curry explained “The proximity is definitely something that we are mindful of. With that in mind, we’re definitely trying to get out early in front of the public and figure out ways to address issues.” The company has stated that it will do everything possible to minimize any risks and impact on the local area and residents but this has not changed the opinion for many in the community.

Categories
Alberta Economic Ft Mac

Pilot Project on Tests Using Radio Frequencies Underway at Suncor Energy

Suncor Energy, radio frequencies

A pilot project on testing that uses radio frequencies instead of steam is being undertaken by Suncor Energy. The hope is that these radio frequencies will liquify bitumen deposits situated under the ground, similar to melting something in the microwave. Suncor Energy is one of several companies that have partnered together to test out this method. The testing method is being used at the Suncor Dover site. The new testing method is called ESEIEH, and these initials stand for Enhanced Solvent Extraction Incorporating Electromagnetic Heating. The process involves using the radio waves to heat up the bitumen deposits until they are liquified, and then mixing in a chemical solvent so that the mixture can be siphoned to the surface if the earth. Suncor Energy believes that this method could be less expensive and a cleaner option than traditional mining method that are currently used.

Suncor Energy spokesperson Ein Rees provided an interview through email discussing the new project and testing method that uses radio frequencies. According to Rees “If proven successful, ESEIEH is expected to result in a reduction of up to 75% in energy requirements. ESEIEH doesn’t use any steam in the in situ recovery process, so it eliminates the cost requirements for water sourcing and handling. It is important to note that establishing a baseline for the comparative costs versus traditional methods is a primary objective of this phase of the pilot. It’s still early days in testing the technology.” Steam recovery methods can mean using energy to create steam, and this method produces greenhouse gases. The new radio frequency method could revolutionize the energy industry is the project is successful.

Categories
Alberta Economic Ft Mac

Company Profits for Suncor Energy Down 80% Because of Falling Oil Prices

Suncor Energy, company profits

The company profits for Suncor Energy are down by about 80% in the fourth quarter, largely due to falling oil prices but also as a result of poor performance in the oilsands as well. Suncor Energy is the largest energy business in Canada, and according to a recent conference call the net income of the company in the last 3 months of 2014 was just $84 million, and that is far less than the $973 in net income for the last quarter of 2013. The operating earnings dropped around 60% for the same quarter a year earlier, going from $973 million to only $286 million. According to Steve Williams, the CEO and President of Suncor Energy, “Today’s lower oil prices should not come as a surprise. It was the relatively stable prices of the last few years that were an anomaly.”

The lower company profits for Suncor Energy is not an isolated issue, other energy companies may follow suit. At the beginning of 2015 Suncor announced that they would engage in layoffs and budget cuts across their entire base of operations. $1 billion was dropped from 2015 capital spending programs budgets, and 1,000 job cuts were also announced. This move has made the company rely more on Fort MacMurray, with less reliance placed on temporary workers. Williams continued by saying “Our commitment to capital discipline has put us in a better position to weather the price downturn. These efforts will also allow us to continue to advance long-life growth projects such as Fort Hills and Hebron.”