Suncor Energy Inc. T.SU

Alternate Symbol(s): SU

Energy Oil & Gas Integrated

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading, offshore oil and gas production, petroleum refining in Canada and the United States and its Petro-Canada retail and wholesale distribution networks, including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicles (EV) stations. Petro-Canada has a network of over 1,800 retail and wholesale locations across Canada, providing customers with a wide variety of fuel and service offerings including low-carbon fuel options. It is developing petroleum resources while advancing the transition to a low-emissions future through investment in power and renewable fuels. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region, approximately 90 kilometers north of Fort McMurray.

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Suncor Energy Inc. > Wow, talk about cost escalation

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Comment by Konaboyon Feb 20, 2022 10:27am

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Post# 34446131

RE:RE:RE:Wow, talk about cost escalation

I would assume that the government will eat the overruns, when it is taken over it will be sold at much less than cost. Was it not the plan the entire time to hand it over to indigenous, to give them more skin in the game (and a cash machine of their own for the foreseeable future)?

We could use more stringent management practices from this point forward, private sector style. Acceleration of the tender process?

Don't see how it would be abandon at this point.

Vicnews

Experienced wrote:

Obscure1 wrote: ENB built its similar length Line 3 pipeline through multiple Provinces and States over 6 years under intense opposition. ENB's final cost was $9.3 billion despite the fact that construction was undertaken in the dead of winter in Minnesota and completed during the pandemic.

In 2017, the year before Trudeau bought TMX from KMI, ENB's cost estimate for it's Line 3 upgrade was $8.2 billion. That means all the delays, Covid, and winter construction only increased ENB's cost of building Line 3 by 13%.

Now that theTMX is estimated to cost $21.4 billion, Trudeau has cut off federal funding and the completion date has been pushed back another 9 months. That means equity partners will be brought in who will walk away with sweet heart deals.

Thanks Justin

To put this cost into perspective, the average cost of building a pipeline of that diameter is about 3.5 million per kilometre. The new TMX numbers is FIVE TIMES that figure.

Trudeau is effectively walking away from the project and tax payers will be eating the billions spent on it so far.

With the cost at about FIVE TIMES the normal cost, the regulated tariffs needed for the owners of the pipeline do not make any sense and in effect renders the whole project uneconomic. If anyone steps up to the plate to put money into this project and take it over, they will require significant annual subsidies to offset the difference between a normal tariff and what is needed for the pipeline and if this happens taxpayers will be on the hook for this pipeline for decades to come.

Seems to me that with the new cost estimates, this pipeline is for all intents and purposes is dead in the water and when you combine that with Biden's decision regarding KXL, the Alberta oil industry is in a big hole.