March 26 2009 / by Garry Golden
Category: Energy Year: General Rating: 2
Canada is starting to flex its muscle as a major player in the world of energy around non-conventional hydrocarbon resources.
This week, Suncor, the number two producer of tar sands, will merge with Petro-Canada. The new energy giant Canadian company could become an expert in developing less environmentally damaging methods for utilizing non-conventional resources in North America and around the world.
The combined company will have ‘approximately 7.5 billion barrels of oil equivalent (boe) of proved (developed and undeveloped) and probable reserves, on top of an estimated contingent resource base of approximately 19 billion boe. It will also have significant refining capacity of 433,000 barrels per day (b/d) and a strong Canadian retail brand in Suncor.'
Preempting the Inevitable Contraction of the Hydrocarbon Sector
Energy analysts expect a wave of mergers as companies find it difficult to grow reserve assets through traditional exploration and development. Cash rich companies might find it easier to expand reserve totals by acquisition.
Future sucess might also be based on an ability to develop non-conventional resources like carbon-heavy 'tar sands' and deep water reserves. So for Canada's leading energy companies it was important to merge before being acquired.
According to Suncor CEO Rick George "The combined portfolio boasts the largest oil sands resource position, a strong Canadian downstream brand, solid conventional exploration and production assets, and low-cost production from Canada's east coast and internationally."
Canada's Vision as a Resource Giant