Title | The strategic value of upgrading at Suncor's oil sands plant |
Publication Type | Conference Paper |
Year of Publication | 1993 |
Authors | Carrothers, S. |
Pagination | 9 pages |
Date Published | 03/1993 |
Publisher | Canadian Heavy Oil Association |
Place Published | Calgary, AB |
Publication Language | eng |
Keywords | economics, overview, plant site, Suncor |
Abstract | The upgrader operated by Suncor's Oil Sands Group (OSG) is a key component of the company's value chain due to its ability to upgrade low value bitumen into high quality petroleum products. This ability is enhanced by the fact that the oil sands plant is an integrated process, with the upgrading facility located at the same site as the bitumen source. The value enhancement achieved across the upgrader is particularly great during periods of high heavy/light oil price spreads. These spreads are currently at high levels, and Suncor believes that this will continue for at least the medium term given domestic supply and environmental factors, with the exception of a local effect as the Bi-Provincial upgrader comes on line. The current inelasticity of the base demand for light, sweet crude will contribute to this effect. The upgrader's potential will also be exploited as part of OSG's strategic plan to significantly expand its product slate. Currently, 94% of the plant's production is a generic light, sweet, resid-free synthetic crude. The upgrader is capable, however, of producing a wide variety of premium products which can be customized to meet the needs of specific customers. Marketing these products will enhance the company's profitability and allow it to better serve its new and existing customers. 5 figs |
Notes | IN: Challenges and Innovations 1993. Tenth Annual Heavy Oil & Oil Sands Technical Symposium. March 9, 1993. Calgary, Alberta. Canadian Heavy Oil Association. Calgary, Alberta. 9 pp. |
Locational Keywords | Alberta oil sands |
Group | OSEMB |
Citation Key | 54070 |