Montreal, 14 September 2010

Ensuring energy availability in a world that needs to sustain economic growth while respecting the environment is a challenge. This challenge can be met through creative development of conventional energy resources together with development of alternative technologies, Richard L. George, President and Chief Executive Officer of Suncor Energy Inc., a major Alberta oil sands producer, told the World Energy Congress Montréal 2010 today.

"We should move forward aggressively along two parallel tracks," he said in a keynote speech to the conference's delegates. "First, we need to get increasingly creative about finding and developing conventional energy sources, whether it's oil, gas, coal or nuclear – and do so in ways that are environmentally and socially responsible. Second, we should use these conventional sources to help drive research and development of alternative energy and new environmental technologies."

In a second keynote address, Gregory Boyce, Chairman and Chief Executive Officer of Peabody Energy, the largest coal producer in the United States, said coal has a crucial role to play in meeting global energy demand and helping reduce poverty in regions in which often more than half the population lacks adequate access to energy.

"There is lots of discussion about reducing carbon emissions, but little said about providing energy for all and reducing poverty," Mr. Boyce said. Electricity use drives economic development, and expansion of coal-fueled electricity mirrors increase in developing countries' GDP, he said.

Technology is being developed that will result in new "Green Generation" coal-fired electricity plants that have near-zero carbon emissions, Mr. Boyce said.

Coal production has grown faster than any other fuel source during the past 10 years, he said. "It is the only sustainable fuel to meet needs of emerging economies."

Suncor follows a policy of sustainable development similar to the World Energy Council's mission statement, Mr. George said. "We are focused on a 'triple bottom line' that says energy resources should be produced and used in a way that generates economic growth, promotes social well being and minimizes the impact on the environment."

Alternative energy sources such as solar, wind, geothermal and biofuels need to constitute an increasing part of the energy mix, he said. But developing these alternatives is a slow process, which means hydrocarbons will continue to play a dominant and crucial role in the coming decades.

Unlike conventional oil, oil sands development is a manufacturing process. "We know exactly where the resources are and so we don't have to worry about exploration costs or drilling a ' dry hole', Mr. George said. "This gives us a unique opportunity to focus on technology and responsibly developing this reserve base over the long term."

Oil sands production is a growth industry in an industry that is struggling to grow supply, Mr. George said. What's more, this resource is located in a country dedicated to democratic principles, regulatory oversight and an open economy -- in contrast to many other countries with plentiful, which suffer from political and economic instability.

Production from the oil sands is forecast to more than double, to close to 3 million barrels per day by 2020 from 1.2 million barrels in 2007. "The Canadian Energy Research Institute expects oil sands investment to contribute $1.7 trillion towards Canada's GDP over the next 25 years," Mr. George said. "The same study projects our industry will generate more than $300 million in government revenues to help fund roads, hospitals, schools and other social infrastructure."

The environmental impact of oil sands production is exaggerated, Mr. George said, as independent studies show oil sands crude is only marginally more carbon-intensive than many other crude sources.

"Canada is currently responsible for 2% of global GHG emissions," he said. "Our industry, in turn, is responsible for 5% of Canada's emissions. Put those numbers together and you get about one-tenth of one percent of global emissions—a small fraction of what is produced by the transportation sector and coal-generating plants, among others."

Ends --

The World Energy Congress: 21st World Energy Congress is organized by the World Energy Council (WEC). Headquartered in London, the WEC is a United Nations (UN) accredited nongovernmental organization that was founded in 1923. It brings together all stakeholders in the energy industry and has Member Committees in nearly one hundred countries. Its mission is to promote the sustainable supply and use of energy for the greatest benefit of all people.

The complete Congress program is available online at www.wecmontreal2010.ca