Suncor's Big Rocks: A Review of Mine Productivity Initiatives

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Suncor’s Big Rocks
A REVIEW OF MINE PRODUCTIVITY INITIATIVES
SME February 2008, Salt Lake City
Presented by Erik Jones
Legal Notice

This investor presentation contains certain forward-looking statements, including statements about Suncor's
growth strategy and expected future production, operating and financial results that are based on Suncor's
current expectations and assumptions. The forward-looking statements, identified by words such as
“targets”, “estimates”, “anticipated”, “plans”, “vision”, “strategy”, “opportunity”, “projected” and “objectives”,
are not guarantees of future performance. Actual results may differ materially as a result of risks,
uncertainties and other factors, such as changes in general economic, market, regulatory and business
conditions; fluctuations in commodity prices and currency exchange rates; the successful and timely
implementation of capital projects; the accuracy of cost estimates and uncertainties resulting from potential
delays or changes in plans, among others. See Suncor's current Annual Report and other documents
Suncor files with securities regulatory authorities for further details, copies of which are available from the
company. The forward-looking statements speak only as of the date hereof and Suncor undertakes no duty
to update these statements to reflect subsequent changes in assumptions (or the trends or factors
underlying them) or actual events or experience.

Certain financial measures referred to in this presentation, namely return on capital employed (ROCE) and
cash flow from operations, are not prescribed by Canadian generally accepted accounting principles
(GAAP). For a reconciliation, see pages 58, 76 and 77 of Suncor’s 2007 Annual Report.

A boe conversion ratio of six thousand cubic feet of natural gas: one barrel of crude oil is based on an
energy equivalency conversion method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Accordingly, boe’s may be misleading if used in isolation.

Unless noted otherwise, financial information is for the most recent quarter or year end.

All dollar amounts are in Canadian dollars unless otherwise noted
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Suncor Energy at a Glance



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Integrated energy company – upstream, refining and
marketing, pipelines and wind power
Market capitalization about $45 billion
Original and single largest investor in the
Athabasca oil sands – 40 years experience
Best growth rate in the oil sands industry:





current production capacity of 260,000 bpd
plan to increase capacity by 35% to 350,000 bpd in 2008
plan to increase capacity by 57% to 550,000 bpd in 2012
More than 6,500 employees
Sustainability: benefiting all stakeholders
3
Suncor Operating Areas
4
Suncor Products
5
Suncor’s Vision
Focus on growth & delivering value
 “To be a unique and
sustainable energy company,
dedicated to vigorous growth
by meeting or exceeding the
changing expectations of our
current and future
stakeholders.”

Increase production to more than
1/2 million barrels of oil per day in
2010 to 2012

Create long-term shareholder value
6
Oil Sands - the Resource



Thick, sticky mixture of sand,
water and bitumen
Suncor leases cover close to
2,000 square kilometers or
about 1,200 square miles
Remaining recoverable
resources in place to produce a
potential 15 billion* barrels of
crude oil
* Suncor data includes proved plus probable reserves and contingent resources, as of December 31, 2006 which is not comparable to most competitors.
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High
Quality
Leases
8
Quality & quantity of leases
2006 remaining recoverable resources

Mining leases 6 billion barrels

In-situ leases
9 billion barrels
15 billion barrels
“Remaining recoverable resources” is the total of reserves and contingent resources. The term “resources” refers to a best estimate of remaining
recoverable resources, which is the sum of proved plus probable reserves and best estimate “contingent resources”, presented on a gross basis
as barrels of synthetic crude oil converted from barrels of bitumen. “Contingent resources” are Suncor’s independent reserve evaluators’ best
estimate of resources they consider to be potentially recoverable from known accumulations under reasonable economic and operating conditions
for areas of our oil sands deposits not classified as reserves. These areas are not classified as reserves due to the absence of a firm plan to
develop within a reasonable time frame and due to higher uncertainty as a result of lower core-hole drilling density. As U.S. companies are
prohibited from disclosing estimates of probable reserves for non-mining properties and resources for oil and gas or mining properties, Suncor’s
resource estimates will not be comparable to those made by U.S. companies. For a description of constant cost and pricing assumptions used to
evaluate the proved and probable reserves included in our resource estimate, and a description of our reserves under U.S. reporting
requirements, see pages 35 to 38.of Suncor’s 2006 Annual Report.
presented on a gross basis evaluated as at December 31, 2006.
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Oil Sands – Base plant
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Oil Sands - Mining
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Oil Sands - Extraction
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Oil Sands - Upgrading
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Oil Sands - In-situ
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SAGD
In-situ
process
Steam
Chamber
Bitumen &
Water
Steam heats
oil sands
Heated bitumen
flows to well
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Suncor Strategy
A staged approach to increasing our
crude oil production capacity allows
Suncor to better manage capital costs
and incorporate new ideas and new
technologies into our facilities.
To provide greater
reliability and flexibility to our
feedstock supplies, we produce
bitumen through our own mining
and in-situ recovery technologies,
and supplement that supply
through third party agreements.
We produce conventional
natural gas as a price hedge
against the cost of
energy consumption.
Our investments in renewable
wind energy and biofuels are a
key part of Suncor’s climate
change action plan.
Suncor takes an active role in connecting
supply to consumer demand with a
diverse portfolio of products,
downstream assets and markets.
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Global Crude Reserves
Billions of barrels of oil
300
250
200
150
100
50
0
Saudi
Arabia
Canada
Iran
Iraq
Kuwait
Venezuela
Russia
U.S.A.
Source: Oil & Gas Journal Dec. 2006
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Industry Projected Oil Sands Production
Millions of barrels per day
5 million +
5
4
3
2
1
0
2004
2006
2010
2015
2020
2030
Source:CAPP, RIWG, Alberta Chamber of Resources
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Sustainable Development
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Safely and responsibly supplying energy in a manner
that meets the environmental, economic and social
expectations of stakeholders
Thinking broadly and taking
a long-term view of our
business risks and
opportunities
Increasing shareholder
value over the long-term
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Mine Productivity initiatives
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

Loading
Haulage
Tires
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High priority
MINING – OPPORTUNITY CLASSIFICATION

High
Haul road
quality
Mineextraction
interface
(blending)

Lump-reduction
(Extraction OPP
breakthrough

Value
Truck
availability
Labor
efficiency

Ops practices

More difficult

Improve haul road
quality

Mining-Extraction
interface

Lump reduction
initiatives

Truck fleet
effectiveness
 Availability
 Utilization
Load factor
Low


Truck
utilization
Improved PM
Dyke
construction
Prioritized
opportunity list
Easier
Ease of
implementation
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CLOSING THE GAP IN SHOVEL OPERATOR PERFORMANCE
Current average
2007

Shovel operator performance
Tonnes/NOH
Expected improvement
Shovel Operator Performance

Highest
Operators


10%
Lowest
More consistent
High end
performance,
Over 30% of all
operators are
meeting or
exceeding
performance
standard
Since 2005, we
have doubled the
amount of
operators able to
meet the
standard
An additional
10% increase will
yield an
additional 30
Mt/year
* Expected improvement calculated by raising group average to average of the eighth, ninth and tenth top operators'
performance; assume 75% of operators can reach target
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HAUL TRUCK LOADING PERFORMANCE- 2007

2007 Average Shift Loading Profile
Percentage of Occurances
20%
Almost 40% of
loads are below
90% capacity
18%

16%


14%

12%

10%
8%

38% Underloads
(<90%)
2% Overloads
(>110%)
4%
2%
0%
0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.20 1.25 1.30

Load factor
Improved
Overload
percentage

6%
% of Rated Payload

Avg.

New operators
Tire Shortage
Longer hauls
More
consistent
loading
practices, over
75% of loads
are within +/15% of target
Tighter control
and a feedback
loop may be
necessary to
improve loading
performance
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Increasing T/GOH 
Truck Productivity
ACTUAL
LINEAR
POWER

Fit

Increasing Distance 
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Truck Productivity
Seasonal Truck Speeds 2003 - 2007
34.00
Truck Speed (km/h)
32.00
30.00
2003
28.00
2005
26.00
2007
24.00
22.00
20.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Month
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Tire life initiatives
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A cross-functional group - operations, technical, maintenance, and SCM personnel with initiatives on
3 fronts:
1) Technical Oriented Initiatives:
 Working with manufacturer’s to improve the tire technology (targeting failure areas)
 Using Dispatch to monitor TKPH ratings on our tires
 Purchasing tires specifically designed for our current mining world (C4 compound)
 Communication – Tire CBTs, poster campaigns, one-on-one talks
 Sharing of best-practices with LTUG (represents about 20 mining companies in NA)
2) Supply Oriented Initiatives:
 Working with manufacturer’s to increase our deliveries
 Purchasing used tires
 Purchasing bias-ply tires
3) Operational Oriented Initiatives:
 Increasing contractor tonnages
 Trialing other trucks (with tires)
 Support Equipment Additions
 Responsible loading and responsible driving practices
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Tire Life Improvement
Historical Giant Tire Life
14000
12,248
12000
10,494
10000
9,445
8,789
GOH
8000
6,663
5,798
6000
6,938
5,942
5,826
5,309
5,069
4,134
4000
2000
0
2004
2005
2006
40.00R57 (Cat 793)
2007
2004
2005
2006
53/80R63 (Komatsu 930E)
2007
2004
2005
2006
2007
59/80R63 (Cat 797)
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In Summary
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Sustainable, profitable growth
Use of new technologies and development of old
Continue into the future with Safety as our number one
value
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