The Indicator: US$6 billion+
THAT’S HOW MUCH MONEY SUNCOR HAS SPENT IN
the past year on acquisitions, pushing it to No.13 in the ranking of the world’s largest integrated oil companies by market value. This is up from 17th place one year ago, according to data compiled by Bloomberg News. The company has been taking advantage of low prices to go on a buying spree for assets that already fit snugly with its own, helping it to keep costs down through integration and economies of scale.
Suncor’s operating costs per barrel are now below $25, down from $37 back in 2013. The oil sands assets it has recently taken over include: Canadian Oil Sands, Total’s stake in the Fort Hills project and Murphy Oil’s five-percent stake in the Syncrude mine. Suncor aims to boost its output to about 800,000 b/d in 2019 from less than 600,000 b/d in 2015. Suncor’s recent purchases are long-life, low-decline assets that are already making a profit for the company, even at today’s prices.
Suncor’s asset base is soaring after it bought out oil sands competitors’ assets in the downturn