Suncor cuts collateral bill by $1.5 billion as oilpatch spending continues to fall

Suncor Energy says it is cutting its collateral spending by 26 per cent this year, adding a association to a list of Canadian oil producers to slash their budgets in new weeks. 

The move, announced late Monday, sees a Calgary-based association revoke a collateral module in 2020 by $1.5 billion to a operation between $3.9 billion and $4.5 billion.

Canada’s oil and gas zone is being strike with a fallout of plunging crude prices related to a marketplace share conflict between Saudi Arabia and Russia, and reduce direct since of a COVID-19 pandemic

“The coexisting supply and direct shocks are carrying a poignant impact on a tellurian oil industry,” Suncor’s arch executive Mark Little pronounced in a statement.

“We are adjusting a spending and operational skeleton to be prepared in a eventuality a stream business sourroundings persists for an extended duration of time.” 

Husky Energy, Cenovus Energy, MEG Energy and Seven Generations Energy are among a list of other companies to also announce spending reductions recently.

Suncor, a writer and refiner, is putting several projects on hold.

The suspended projects embody a $1.4-billion devise announced in Sep to implement dual cogeneration units during a Oil Sands Base Plant in northern Alberta that would have reduced hothouse gas emissions during a facility.

The association is also crude work on a $300-million breeze energy plant in southern Alberta authorized in December.

On Sunday, Husky Energy Inc. announced it would postpone vital construction work on a West White Rose Project off Newfoundland. Suncor has a 26 per cent seductiveness in a project. 

Suncor says it will go forward with construction of joining pipelines between a Base Plant and circuitously Syncrude oilsands operations and will finish a deployment of driverless transport trucks during a Fort Hills oilsands mine.

“Our business indication and financial devise are designed to withstand flighty environments,” Little said.

The thrust in prices has also had a serious impact on oil producers in a United States. On Tuesday, Chevron announced it slashed a 2020 collateral spending devise by 20 per cent, or about $4 billion US.

Article source: https://www.cbc.ca/news/business/suncor-cuts-capital-spending-1.5508050?cmp=rss