business results

2007 Business Results

In the face of many challenges, and in the midst of a major corporate reorganization, Syncrude set six new production records in 2007. Production of Syncrude crude oil was up by 17 million barrels, or 18 percent, over 2006 rising to 111.3 million barrels, or 305,000 barrels per day. This increased production reflects Syncrude's enhanced production capacity following the Stage 3 expansion completed in 2006.

UE-1 expansion

Syncrude's UE-1 expansion, completed in 2006, increased production capacity to 350,000 barrels per day.

Operating costs including purchased energy costs totalled $2,744 million or $24.64 per barrel of production, seven percent lower than the 2006 operating cost per barrel of $26.46.

Syncrude's capital expenditure program was $672 million in 2007 compared with $1,044 million in 2006. This decrease is due to a lower level of capital spending and development expense compared to 2006, the year in which Syncrude's Stage 3 expansion was completed.

 

 

Investors want Syncrude to meet production and cost targets.

In 2007, Syncrude increased production by 18% while reducing costs by 7%.

6 NEW
production records in 2007
111
million barrels of crude oil shipped in 2007
Financial and Operating Summary
Dollar amounts in Cdn. dollars 2007 2006 2005 2004 2003
Total Crude Oil Production 1
Millions of barrels per year 111.3 94.3 78.1 87.2 77.3
Thousands of barrels per day 305 258 214 238 212
Annual Average WTI at Cushing
(US$ per barrel) 72.37 65.97 56.70 41.47 30.99
Total Operating Costs 2
Millions of dollars 2,744 2,494 2,077 1,623 1,629
Per barrel of Production 24.64 26.46 26.59 18.61 21.07
Capital Program 3
Millions of dollars 672 1,044 2,533 2,613 2,435
  1. Production is Syncrude crude oil shipped.
  2. Operating costs are costs related to the mining of oil sand, the extraction and upgrading of bitumen into Syncrude crude oil and maintenance of facilities; they also include administration costs, start-up costs, research, and purchased energy. there is no generally accepted accounting definition as to what constitutes "Operating Costs". the accounting treatment of certain costs may vary significantly between different producers. Some producers may elect to capitalize or defer and amortize certain expenditures that are recorded as an expense by other producers; and may segment "Corporate" costs.
  3. Capital program includes development expense related to sustaining capital and major capital projects. note: these figures may differ from those reported by any of the Joint venture participants due to differences in reporting conventions and methodology.