Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Canada’s Suncor benefits from lengthy crude transport

Oil sands
Suncor news

Canada’s largest oil producer has reported record profits in the first quarter of this year as it benefited from the long transport of crude from the country’s landlocked province of Alberta to the US and Canadian coasts.

Suncor Energy moved as much as 70,000 barrels per day of crude, or about 13% of its output, on TransCanada’s Gulf Coast pipeline in the period, helping the company earn higher prices, it said in a statement.

At the same time, Suncor used rail cars to supply its refinery in Montreal with 20,000 barrels a day of cheaper Canadian oil, replacing more expensive imported feedstock.

Like domestic competitors producing bitumen from Canada’s oil sands, Suncor is slowly expanding its shipments to coastal markets while it waits for pipelines like TransCanada’s Keystone XL and Enbridge’s Northern Gateway to be built.

In the meantime, the company is cobbling together a system of rail transport and space on new and existing lines to get its fuel to new markets.

“The successful implementation of our long-term market access strategy positions us well for the future,” said Steve Williams, Sancor’s chief executive.

The strategy helped produce record earnings for Calgary-based Suncor in the first quarter. Both operating profit at $1.57billion (£930million), or $1.22 a share, and cash flow from operations at $2.61billion were quarterly records, Williams said in the statement.

Suncor gained 0.9% on Monday, bringing this year’s increase to 11%. Canada’s Standard & Poor’s/TSX Energy Index has risen 14% this year.

Canada’s oil producers have had to work around transportation delays that risk slowing the pace of investments in oil sands that may reach $29billion this year.

Keystone XL, first proposed by TransCanada in 2008, has been delayed at least three times, most recently on April 18 by the US State Department. Enbridge’s Northern Gateway, which is opposed by aboriginal and environmental groups, is awaiting approval by Prime Minister Stephen Harper.

Other pipelines that have been proposed to cope with surging production of oil sands crude include Kinder Morgan Energy Partners LP’s Trans Mountain and TransCanada’s Energy East.

Working around transportation bottlenecks helped increase prices in the first quarter for North American crudes. West Texas Intermediate averaged $98.61 in the quarter, 4.5% higher than a year earlier, while Western Canada Select, the benchmark for Canadian heavy crude, averaged 16% higher at $77.76.

Oil sands production is forecast to almost triple to 5.2million barrels a day by 2030, from 1.8million barrels a day in 2012, according to an outlook by the Canadian Association of Petroleum Producers, an industry lobby group. Currently most of Canada’s oil is shipped to the US.

Recommended for you


More from Energy Voice

Latest Posts