Suncor Energy Inc., an integrated Canadian energy company, has announced that it expects its oil and gas production to rise by 5% next year.
It also added that there was continuing uncertainty resulting from the Alberta production curtailment. This was introduced by the Alberta government to limit production to match pipeline and rail take-away capacity and prevent Canadian crude being sold off at a discount.
The company believes it has been disproportionately affected by this, however, as it explains:
“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.”
Suncor, which until 2016 owned the Petro-Canada lubricant business, has, like some other Canadian producers, asked permission to produce above its currently imposed curtailment limits, with additional production to be transported by rail.
The company now forecasts production to rise by 5% to 840,000 boe/d (barrels of oil equivalent per day) based on the mid-2019 level of 800,000 boe/d.
The Canadian Energy Regulator (CER) recently said it expects overall Canadian crude production to rise by 50% by 2040, while the average energy consumption of Canadian citizens is expected to drop by 15% over the same period.
It adds that future crude oil production growth will rely on current infrastructure projects going ahead as planned, so there will be sufficient pipeline and rail export capacity. The CER also highlights liquefied natural gas exports as an important driver for gas production.