Suncor cuts oil sands output for 2016 – Mining.com

November 18, 2015

Suncor Energy (TSX, NYSE:SU), Canada’s dominant oil sands player, warned Tuesday that production would drop next year as a result of major planned maintenance work at its facilities.

The company, however, intends to increase capital spending in 2016 by around 15% from this year. That means it has added $900 million to its budget, despite its pessimistic outlook for commodity prices.

Suncor expects U.S. benchmark crude to remain unchanged at $50 a barrel, while predicts that Canadian heavy oil will trade $2 lower in 2016 than this year’s forecast.

Total production is expected to average 525,000 to 565,000 barrels of oil equivalent per day, with the midpoint down 5% from the 2015 average of 550,000 to 595,000 boe/d.

Read More: http://www.mining.com/suncor-cuts-oil-sands-output-for-2016/