Suncor weighs potential oil sands deals as global majors exit

|About: Suncor Energy Inc. (SU)|By:, SA News Editor

Suncor Energy (SU +0.5%) is evaluating opportunities for oil sands acquisitions in Alberta as foreign oil majors exit the high-cost region, but does not feel pressure to agree on another deal, CEO Steve Williams says.

"The exodus from oil sands by a lot of the big international companies I don't think is quite finished yet, so there may well be some incredible opportunities," Williams said on SU's earnings conference call; some energy industry players also see a limited pool of oil sands buyers, and prices could move lower as a result.

The sector is increasingly becoming concentrated in the hands of a few Canadian companies, which Williams says requires focused operators with deep expertise to develop technology, adding that consolidation would give producers more opportunities to leverage infrastructure, reduce costs and improve productivity.