Suncor Energy Inc.'s are hedging that their latest decision to cancel its oil sands plant would help boost shareholder revenues. Instead of investing Can$11.6 billion in a plant, it is now directly shipping to refineries.
Suncor is the largest energy company in Canada and it has opted out of its inital venture with Total SA to build Voyageur upgrader in Canada. This is another way that the company would be participating in the growth of the oil sands boom in Asia and the US Gulf Coast.
Because of the decision to change programs, Suncor share values increased by 4 cents to Can$30.44 at Toronto Stock Exchange's close.
Furthermore, the decision to abandon the Voyager Upgrader plant would help Suncor avoid increasing costs, rising by 70% between 2000 and 2008. According to reports from IHS CERA, only three of the planned eleven upgraders have been built after the 2008 recession because of the exorbitant costs.
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