Canada’s oil sands are driven by leading companies like Suncor, Cenovus, and Imperial Oil — each playing a pivotal role in advancing energy production, innovation, and environmental performance.

Canada has a stunning amount of oil in its oil sands. It couldn’t get it out without these companies.

Canada’s oil sands hold more than 170 billion barrels of recoverable oil, making the country’s oil reserves the third-highest in the world. Needless to say, the vast oil supplies are attracting considerable attention. In part three of our oil sands series (101, 102), we’ll explore the companies that are exploring the oil sands.

Oil and gas companies of all sizes have established operations in the region to extract this valuable resource. Athabasca, the largest of the deposits, has attracted investments from around the world, including companies such as Royal Dutch Shell (NYSE: RDS-A),  ExxonMobil (NYSE: XOM), and China’s Sinopec.

Producers you need to know.

As one of the pioneers of the oil sands, Suncor (TSX: SU) (NYSE: SU) is a company investors need to know. It has grown into an oil sands leader with a balanced portfolio of mining, in situ, and upgrading projects. Thanks to the wealth of oil it has access to in the oil sands, Suncor can continue producing at its current rate for the next 34 years. However, Suncor doesn’t expect the status quo, as it anticipates growing its oil sands production by more than 300,000 barrels of oil per day by 2020. Overall, Suncor’s vision is to increase its oil production to more than one million barrels of oil per day in the future.

Another producer that investors should be aware of is Syncrude, a joint venture involving Suncor, Sinopec, Imperial Oil (TSX: IMO) (NYSE: IMO), and other partners. Syncrude is one of the largest crude oil producers in Canada, operating a large oil sand mine, a bitumen extraction plant, and an upgrading facility that converts the heavy bitumen into light, sweet crude oil, making it easier to refine.

Projects you need to know

The Athabasca Oil Sands Project, a joint venture operated and majority-owned by Shell, is a key project. It consists of the Shell Albian Sands mining and extraction operations, the Scotford upgrader, and the proposed Quest Carbon Capture and Storage project. The Albian Sands comprises two mines that combined produce over 250,000 barrels per day. Shell is currently looking to expand one of those mines, as well as add a third, which could eventually add another 300,000 barrels per day of production.

A second project that every investor should be aware of is the Kearl Oil Sands Project, a joint venture between ExxonMobil and Imperial Oil. Like the Athabasca Oil Sands Project, Kearl is a mining project. What is particularly striking about this project is that initial cost estimates were $7.9 billion, but the final price tag ultimately increased by 63% to a staggering $12.9 billion. Upon full development, this project is expected to produce more than half a million barrels of oil per day, with production anticipated to continue for the next 40 years.

The final project, and by far the most controversial, is the proposed Keystone XL pipeline by TransCanada (TSX: TRP) (NYSE: TRP). The proposed 1,897 km pipeline would transport Canadian crude oil, as well as oil from the Bakken, to the U.S. Gulf Coast, with a capacity of 830,000 barrels of oil per day. The project is estimated to cost TransCanada around $5.3 billion to build. Many consider the project key to rightsizing the price of Canadian crude, which currently sells at a discount to world prices due to insufficient pipeline capacity to reach U.S. refineries. That’s why TransCanada’s Keystone XL could be one of the most critical projects for the future development of Canada’s oil sands.

Final thoughts

Canada’s oil sands are a game-changer for both Canada and North America. The oil produced has the potential to lessen the importance of oil produced in the Middle East. Furthermore, due to the vast resources available, the oil sands will continue to attract capital from companies seeking to expand their oil production. That could yield exceptional long-term returns for investors in these companies.

Learn more: 

• Part 1: Oil Sands 101: What Are the Oil Sands Anyway?
• Part 2: Oil Sands 102: How Does Oil Come from Sand?
• Part 3: Oil Sands 103: What Companies are Key to Developing Canada’s Oil Sands?
• Part 4: Oil Sands 104: Are the Environmental Concerns Worth the Risk?
• Part 5: Oil Sands 105: What is Diluent and Why is it Important?

Canada’s Oil Sands Are Evolving — Who’s Leading the Way?

As top producers invest in technology and carbon reduction strategies, Klean Industries partners with innovators to support the development of low-carbon fuels and circular solutions. Our advanced pyrolysis platforms and carbon upgrading systems help bridge traditional and clean energy markets.

Looking to collaborate or differentiate in Canada’s evolving oil sands sector?

Klean provides turnkey solutions for decarbonization, waste valorization, and ESG-aligned growth.

Speak with Klean’s Strategic Development Team and accelerate your transition toward smarter, circular energy systems » GO.