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Suncor plans 10 per cent production increase for 2019

Pipes leading to a processing unit at Suncor Fort Hills facility in Fort McMurray Alta., on September 10, 2018. THE CANADIAN PRESS/Jason Franson
Summary

Suncor Energy is planning to grow production by about 10 per cent, even after Alberta's mandatory production curtailment


Suncor said it expects average upstream production of 780,000 to 820,000 barrels of oil a day


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

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

Suncor said 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 said it’s 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.