Canada’s Oil Sands:
Challenges and Opportunities
Mike Ashar
Executive Vice President
Suncor Energy Inc.
Woodrow Wilson Forum
October 17, 2005
Washington DC
Legal Notice

This presentation contains certain forward-looking statements, including statements about Suncor's
growth strategy and expected and 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 “vision”, “goal”, “targets”, “estimates”, “plans” 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.

Unless noted otherwise, financial information is for the most recent quarter or year end.

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.
Suncor Energy at a Glance

Integrated energy company with more than
4,500 employees
 Crude oil production capacity of 260,000
barrels/day
 Refining capacity of 160,000 barrels/day
 Market capitalization about US$24 billion
11 billion barrels
reserves and
resources
Resources
14
12
10
8
6
4
2
0
Exxon
Mobil
Petrobras
Chevron
BP
proved
Total
RD Shell
Conoco
Phillips
Suncor
resources
All company data, except Suncor, is based on 2003 year-end proved reserves. Under U.S. reporting requirements, companies cannot disclose resources.
Accordingly, Suncor’s reserve and resource estimate will not be comparable to those made by U.S. companies. Source: Oil and Gas Journal
Comparative Advantages

No exploration costs
 High recovery rates
 Competitive fiscal regimes
 Secure connection to
North American markets
Suncor Oil Sands Production Growth
Thousands of barrels per day
600
50
500
400
300
500
200
350
100
94
123
1998
2001
217
227
**
260
206
2002
2003
2004
2005*
0
*Production capacity targets
2008*
**Includes in-situ bitumen production
2010 to
2012*
Challenges
Costs – operating, capital and labor
 Environmental impacts
 Pipeline capacity
 Refinery capability

Operating costs

Industry average about US$20 for upgraded
product
 Constant cost pressure
 Natural gas a major cost component risk
Capital Costs

US$35 billion planned in next five years
 Industry working to manage project costs and
infrastructure impacts
 Peak labor force of 25,000
Environmental Issues

Must manage impacts to air land and water
 Collaboration is key
 Progress is being made
Pipeline Access
Fort McMurray
Edmonton
Hardisty
Vancouver
Kerrobert
Puget Sound
Regina
Cromer
Gretna
Great Falls
Clearbrook
Billings
Montreal
Superior
Mandan
Salt Lake City
San Francisco
Casper
Sinclair
St. Paul
Toronto
Cheyenne
Denver
Bakersfield
Los Angeles
Artesia
El Paso
Detroit
Toledo
Chicago
Canton
Lima
McPherson
El Dorado
Coffeyville
Ponca City
Cushing
Borger/Sunray
Robinson
Patoka
Wood River
Catlettsburg
Tulsa
Memphis
Ardmore
Big Spring
Port Arthur
Houston
Texas City
Freeport
Corpus Christi
Buffalo
Lake Charles
New Orleans
Canadian Supplied
Not Canadian Supplied
Source: Enbridge, Terasen, ExxonMobil
Refinery Capability:
Heavy/Sour Crudes Processed in the U.S.
1.6
35
API Gravity
Sulfur
1.5
% of Sulphur has been
increasing from 0.9% to 1.5
33
1.3
32
API
% Sulphur
1.4
34
1.2
31
1.1
30
1
Average API is going down as more
Canadian crude is heading to the US
0.9
0.8
29
28
Source: EIA, January 2005
Canada’s Oil Sands:
Challenges and Opportunities
Mike Ashar
Executive Vice President
Suncor Energy Inc.
Woodrow Wilson Forum
October 17, 2005
Washington DC