Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

A tank stands at the Husky Energy upgrader facility in Lloydminster, Sask.

LARRY MACDOUGAL/The Canadian Press

Husky Energy Inc said on Thursday it had the capacity to ramp up production in the third quarter as about 30,000 barrels of its crude oil remained curtailed per day in Western Canada and the United States.

Alberta, the main oil-producing province in Canada, curtailed some 1 million barrels per day (bpd) this spring as coronavirus-led lockdowns to curb the spread of the virus crushed demand for products like gasoline and jet fuel.

The comments come a week after bigger rival Suncor Energy Inc said Western Canadian oil companies are moving to restore all of the production that they shut-in.

Story continues below advertisement

Producers in the United States have also voluntarily cut output after U.S. oil prices plunged below $0 in April for the first time ever.

Husky, which posted a smaller-than-expected quarterly loss, helped by higher margins, had about 80,000 bpd shut in the start of second-quarter.

The company said it expects full-year spending to be between $1.6 billion and $1.8 billion, and could reduce its 2021 spending to a range of $1.2 billion to $1.4 billion.

Shares of the company were down 4.2 per cent as oil prices fell over fears that fuel demand recovery could be capped by a resurgence in coronavirus infections.

Excluding items, Husky lost 30 Canadian cents per share, below Street estimates of a loss of 53 Canadian cents due to higher margins at the company’s oilsands, Western Canadian and U.S. refining operations.

Quarterly production fell nearly 8 per cent to 247,000 barrels of oil equivalent per day (boepd) due to the production cuts, while average prices for its blended crude oil fell 64 per cent to $24.36 per barrel.

Net loss came in at $304 million for the quarter ended June 30, compared to a year-ago profit of $370 million.

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies