Suncor (SU) Faces Penalty for Pollution Permit Violations
Suncor Energy Inc. SU has been fined by Colorado’s Department of Public Health and Environment (“CDPHE”) for air pollution permit violations at its Commerce City refinery. The company is being penalized at least $10.5 million for violations between 2019 and 2021. The Canadian energy giant has allegedly exceeded the emission limits for sulphur dioxide, carbon monoxide and nitrogen oxide.
This is the largest penalty that the U.S. state has levied against a single facility. According to CPDHE, the communities living and working near Suncor’s refinery have been burdened by the refinery’s permit violations for far too long. Suncor’s Commerce City refinery processes nearly 98,000 barrels of crude oil per day. The refinery has faced many problems recently, including a fire breakout in 2022 and a temporary shutdown in 2023. The nearby residents have complained several times regarding the odor and air pollution caused by the facility.
CDPHE has instructed the company to double the number of air-pollution monitors against its original monitoring plan. The department has also mentioned that out of the total amount to be paid in penalty, $2.5 million will be for environmental violations, $1.3 million will be allocated to projects through the state’s environment justice grant program for the affected communities and a small portion would also go to the U.S. Environmental Protection Agency.
Zacks Rank and Key Picks
Currently, SU carries a Zacks Rank #3 (Hold).
Investors might want to look at some better-ranked stocks in the energy sector, such as VAALCO Energy EGY, Oceaneering International OII and Harbour Energy HBRIY. While VAALCO and Oceaneering International currently sport a Zacks Rank #1 (Strong Buy) each, Harbour Energy holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
VAALCO Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Oceaneering International is a market-leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 boepd. The company has also done well in reducing its debt in the past year.
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