• 1 min French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 2 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 4 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 6 hours Aramco In Talks With Chinese Petrochemical Producers
  • 7 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 9 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 15 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 20 hours Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
Overcoming Wind Energy’s Biggest Obstacle

Overcoming Wind Energy’s Biggest Obstacle

New research suggests that smaller,…

Is Trouble Brewing In The Permian?

Is Trouble Brewing In The Permian?

While a majority of forecasts…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Suncor Remains Bearish On Canadian Crude, Cuts 2016 Production

Suncor Remains Bearish On Canadian Crude, Cuts 2016 Production

Suncor Energy (TSX, NYSE:SU), Canada's dominant oil sands player, warned Tuesday that production would drop next year as a result of major planned maintenance work at its facilities.

The company, however, intends to increase capital spending in 2016 by around 15% from this year. That means it has added $900 million to its budget, despite its pessimistic outlook for commodity prices.

Suncor expects U.S. benchmark crude to remain unchanged at $50 a barrel, while predicts that Canadian heavy oil will trade $2 lower in 2016 than this year's forecast.

Suncor expects U.S. benchmark crude to remain unchanged at $50 a barrel, while predicts that Canadian heavy oil will trade $2 lower in 2016 than this year's forecast.

Related: OPEC’s Bad Bet By The Numbers

Total production is expected to average 525,000 to 565,000 barrels of oil equivalent per day, with the midpoint down 5% from the 2015 average of 550,000 to 595,000 boe/d.

The company noted the announced production cut has nothing to do with low global oil prices, which have pushed the price of Canadian heavy crude to around $27 a barrel in November.

Earlier this month, oil sands producer Canadian Natural Resources (TSX:CNQ) — the country's largest independent oil producer — said it planned to spend between Cdn$4.5bn and Cdn$5bn in 2016, but also warned it could reduce that amount by as much as $1.5 billion depending on commodity markets.

Suncor has so far cut $1.4 billion from its budget this year and let go about 1,200 employees. It said Tuesday it could adjust next year’s spending plan in line with “any further deterioration in market conditions,” citing potential reductions in capital and operating expenditures.

Related: Saudis Planning For A War Of Attrition In Europe With Russia’s Oil Industry

Last month the oil giant launched a $3.3 billion (Cdn$4.3bn) hostile takeover bid for Canadian Oil Sands (TSX:COS), its partner and the largest shareholder in Syncrude — Canada’s largest synthetic oil project.

Its attempt to buy COS expires on December 4, marking 60 days since the offer was made.

Suncor has been looking to expand in the Canada’s oil sands amid a prolonged slump in oil prices. In September, it bought an additional 10% interest in the Fort Hills oil sands project in northern Alberta from French oil company Total.

By Cecilia Jamasmie via Mining.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News