Page 76 - AIF - English

RISK FACTORS

international subsidiaries and, so, to a lesser extent, a function of the quality and quantity of available data,

Suncor’s results can be affected by the exchange rates which may have been gathered over time.
between the Canadian dollar and the euro, and the
Reserves and resources estimates are based upon a
Canadian dollar and the British pound. These exchange geological assessment, including drilling and laboratory
rates may vary substantially and may give rise to favourable
tests. Mining reserves and resources estimates also consider
or unfavourable foreign currency exposure, which could production capacity and upgrading yields, mine plans,
have a material adverse effect on Suncor’s business,
operating life and regulatory constraints. In Situ reserves
financial condition, results of operations and cash flow.
and resources estimates are also based upon the testing of
core samples and seismic operations and demonstrated

Labour Relations
commercial success of in situ processes. Our actual
Hourly employees at our Oil Sands facilities near Fort production, revenues, royalties, taxes, and development
McMurray, Alberta, all of our refineries, certain of our
and operating expenditures with respect to our reserves
lubricants operations, certain of our terminalling and will vary from such estimates, and such variances could be
distribution operations, and our Terra Nova FPSO are
material. Production performance subsequent to the date
represented by labour unions or employee associations. of the estimate may justify revision, either upward or
Approximately 30% of our employees are members of
downward, if material.
Unifor. Any work interruptions involving our employees,
contract trades utilized in our projects or operations, or any The reserves evaluations are based in part on the assumed
success of activities we intend to undertake in future years.
jointly owned facilities operated by another entity could
have a material adverse effect on Suncor’s business, The reserves and estimated cash flow to be derived from
the reserves contained in the reserves evaluations will be
financial condition, results of operations and cash flow.
reduced to the extent that such activities do not achieve
the level of success assumed in the reserves evaluations.
Reliance on Key Personnel
Our success, in a large measure, is dependent on certain The reserves evaluations are effective as of a specific
effective date and have not been updated, and thus do not
key personnel. The loss of services from such key personnel
could have a material adverse effect on the company. The reflect changes in our reserves since that date.

contributions of the existing management team to the For these reasons, estimates of the economically
immediate and near-term operations of the company are recoverable reserves and resources attributable to any
particular group of properties, and classification of such
likely to continue to be of central importance for the
foreseeable future. In addition, the competition for reserves and resources based on the risk of recovery,
prepared by different engineers or by the same engineers
qualified personnel in the oil and natural gas industry is
intense, and there can be no assurance that we will be at different times, may vary.

able to continue to attract and retain all personnel
necessary for the development and operation of
Interest Rate Risk
We are exposed to fluctuations in short-term Canadian and
our business.
U.S. interest rates as Suncor maintains a portion of its debt
Uncertainty of Reserves and Resources Estimates
capacity in revolving and floating rate bank facilities and

The reserves and contingent resources estimates included in commercial paper, and invests surplus cash in short-term
this AIF represent estimates only. There are numerous debt instruments. We are also exposed to interest rate risk

uncertainties inherent in estimating quantities and quality when debt instruments are maturing and require
of these proved and probable reserves and contingent refinancing, or when new debt capital needs to be raised.

resources, including many factors beyond our control. In
general, estimates of economically recoverable reserves and Capital Markets

the future net cash flow from these assets are based upon Suncor expects that future capital expenditures will be
a number of variable factors and assumptions, such as financed out of cash generated from operations and

historical production from the properties, the assumed borrowings. This ability is dependent on, among other
effect of regulation by governmental agencies, pricing factors, commodity prices, the overall state of the capital

assumptions, the timing and amount of capital markets and investor appetite for investments in the energy
expenditures, future royalties, future operating costs, and industry generally and our securities in particular.

yield rates for upgraded production of synthetic crude oil The market events and conditions witnessed over the past
from bitumen – all of which may vary considerably from several years, including disruptions in international credit

actual results. The accuracy of any reserves and resources markets and other financial systems and the deterioration
estimates is a matter of interpretation and judgment and is
of global economic conditions, have caused significant

volatility in commodity prices and increases in the rates at

74 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014