Skip to main content
Open this photo in gallery:

A Suncor Energy facility in Sherwood Park, Alta.CANDACE ELLIOTT/Reuters

Canadian oil and gas producer Suncor Energy Inc on Monday forecast a 5-per-cent rise in oil production for 2020, and said there continues to be considerable uncertainty related to the impact and duration of Alberta’s production curtailment.

Production is expected to be between 800,000 to 840,000 barrels of oil equivalent per day (boe/d), a 5-per-cent increase over the midpoint of its 2019 forecast, the company said.

Suncor and a number of other Canadian producers have asked the government to allow them to produce above their current curtailment limit as long as incremental production moves to market by rail.

The mandatory cuts sharply reduced a price discount on Canadian versus U.S. oil, boosting revenue for many producers but affecting profits for integrated companies such as Suncor, which benefited from low-cost oil to run through its refineries.

The company also said it expects capital spending between $5.4 billion and $6.0 billion, adding that the capital increase in 2020 is predominantly associated with projects driving the $2 billion of incremental free funds flow target by 2023.

“Fort Hills and Syncrude remain adversely impacted due to the continued, disproportionate effect of curtailment as it is applied on a 2018 production basis when neither asset was operating at nameplate capacity,” the company added.

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

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 22/05/24 4:10pm EDT.

SymbolName% changeLast
SU-T
Suncor Energy Inc
-1.07%55.43
SU-N
Suncor Energy Inc
-1.36%40.49

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe