Suncor to increase output

Suncor to increase output

Suncor Energy Inc. is planning to grow production by about 10 per cent, even after Alberta’s mandatory production curtailments.

The company says it expects average upstream production of 780,000 to 820,000 barrels of oil equivalent per day, up from about 730,000 boepd this year.

Suncor says its guidance assumes the curtailments are in place for three months before falling to 30 per cent of initial levels for the remainder of 2019, in line with the provincial announcement.

The production guidance came as Suncor says it is planning between $4.9 billion and $5.6 billion in capital spending next year, roughly in line with this year.

The Alberta government has announced a mandatory cut to oil production which amounts to 8.7 per cent of overall output in a bid to reduce a glut of oil and help boost low prices.

Western Canadian crude had been trading at a steep discount to the North American benchmark prices, however that gap has narrowed since the Alberta announcement.

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