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A Freeze Won’t Do – OPEC Needs To Cut Production

A Freeze Won’t Do – OPEC Needs To Cut Production

Algeria’s energy minister has expressed…

Suncor’s Losses In Alberta Could Hit $1 Billion C.

WIldfires

Last month’s wildfire in northern Alberta Canada could cost Suncor Energy almost $1 billion CDN, or $778 million USD.

That fire, which resulted in the evacuation of Fort McMurray, shut down Suncor along with other producers. That situation cut Canada’s output by over a million barrels of crude oil per day. A spokeswoman for Suncor did not comment on any losses.

However, two Suncor employees, who’ve asked not to be identified, put the losses at $1 billion Canadian. One employee said that the news had come from a Suncor executive. The sources also claimed that they had been told that Suncor’s thermal operations were not coming back online as soon as the company had hoped. They were also told that the company has around six months of available inventory at its main site.

Another employee, who also remained anonymous, said that the company saw losses that could go beyond the $1 billion mark. That employee said the costs were attributed to worker transportation and lodging. Sneh Seetal, a Suncor spokeswoman, said that the return to operations is “going as planned.”

The company now anticipates 2016 total production of 585,000-620,000 barrels of oil equivalent per day (BOE/D), down from the prior guidance of 620,000-665,000 BOE/D.

Related: Oil Sell Off Continues Amid Economic Uncertainty

Energy companies Husky and Cenovus, which resumed operations last week, did not expect their wildfire losses to be substantial, but representatives for the company did not provide a dollar estimate.

Suncor and other producers were forced to stop operations after fires in Fort McMurray and Pelican Lake prompted worker evacuations.

By Lincoln Brown for Oilprice.com

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