Risk Management

Capital Expenditure Risk

Inherent in the mining of oil sands and production of synthetic crude oil is a need to make substantial capital expenditures. In addition to the potential of capital cost increases, we are exposed to financing risks associated with the funding requirements for our 36.74% interest in Syncrude’s capital program. We have historically minimized this risk by accessing diverse funding sources. Credit facilities and cash from operating activities are significant sources of funding available to us.  In addition, we believe that the Trust has the ability to access public debt and equity markets given our asset base and current credit ratings.