Suncor Energy Inc.’s logo is shown at the company’s annual meeting in Calgary on April 27, 2017.THE CANADIAN PRESS/Jeff McIntosh

Suncor Energy Inc.’s logo is shown at the company’s annual meeting in Calgary on April 27, 2017.THE CANADIAN PRESS/Jeff McIntosh

Suncor says end of Alberta oil quotas a ‘positive signal’ as it reports $302M loss

Suncor has been opposed to the Alberta oil quotas since they started in 2019

The CEO of Suncor Energy Inc. says the Alberta government’s decision to end its oil production curtailment program in December after almost two years is “a very positive signal” for the oilsands and refining giant.

On a conference call, Mark Little says the end of the quota system imposed to support oil prices will allow Suncor to operate “unencumbered” as it recovers from nine months marked by low oil prices, the COVID-19 pandemic disruptions and a fire in August that hurt production at its base oilsands mining operations.

In the wake of a proposed merger of oilsands rivals Husky Energy Inc. and Cenovus Energy Inc., Little says Suncor is more concerned with improving operational performance and strengthening its balance sheet than taking on debt to grow by acquisition.

Suncor reported a third-quarter operating loss of $302 million as revenue fell 34 per cent to $6.5 billion compared with the same period of 2019, when it earned $1.114 billion on revenue of $9.9 billion.

It said oil and gas production fell to 616,000 barrels of oil equivalent per day in the third quarter from 762,000 boepd in the year-earlier period, while refinery output fell to 399,700 barrels per day or 87 per cent utilization from 463,700 bpd or 100 per cent.

The company, which announced in early October it will cut as many as 1,930 jobs over 18 months to reduce total staff by 10 to 15 per cent, said it is on track to achieve its $1-billion operating cost reduction target by the end of 2020.

Suncor has been opposed to the Alberta oil quotas since they started in 2019.

“The indication is that the government does not plan to resume production limits and this is a very positive signal for us and we’re really looking forward to this being a fully unencumbered market,” said Little on the call.

“We will be agile and disciplined as we consider the impact of these changes on our production plans for Fort Hills.”

Production at the 194,000-barrel-per-day Fort Hills oilsands mine was throttled back because of the quotas. Early this year, Suncor shut down one of its two production trains because of low oil prices.

The train was restarted in September and Little said it is on track to achieve overall production of between 120,000 and 130,000 bpd in the current quarter, with growth beyond that to be ramped up gradually to ensure cost savings are retained.

Suncor announced this week it plans to move its Petro-Canada refining and retail branch head office to Calgary from southern Ontario next year. On the call, Little said some of the 700 associated jobs will be lost as part of its overall workforce reductions.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nanaimo Mayor Leonard Krog is happy to be on hand as Dodd’s Furniture and Mattress, represented by president Gordy Dodd, presents 150 blankets to the Salvation Army in Nanaimo, represented by envoy Dawne Anderson. (Greg Sakaki/News Bulletin)
Furniture store donates 150 blankets to Salvation Army in Nanaimo

Dodd’s cancels drive-thru giving event due to COVID-19, but finds another way to help

Creativity Commons manger Jonathon Bigelow is printing copies of ‘Alone but Not Alone: Poetry in Isolation’ using the Nanaimo Harbourfront Library’s Espresso Book Machine. (Photo courtesy Corinne Shortridge)
Nanaimo Harbourfront Library releases COVID-19-themed poetry anthology

‘Alone but Not Alone: Poetry in Isolation’ features poets from across the Vancouver Island region

Letter writer isn’t convinced that a pride-of-place campaign and a leaders’ table initiative will result in the kind of decisions and actions needed in Nanaimo. (News Bulletin file photo)
LETTER TO THE EDITOR: Real change requires more than buzzwords

Letter writer questions pride-of-place campaign, leaders’ table initiative

Nanaimo city councillors have recommended a $1.3-million cycle track for Albert Street between Pine Street and Milton Street. The city held a budget-focused finance and audit committee meeting Friday. (Chris Bush/News Bulletin)
City of Nanaimo budgets for new $1.3-million bike lane on Albert Street

Potential property tax increase now at 3.6 per cent after finance and audit meeting Friday

Police escorted residents of a homeless encampment on Wesley Street to and from the site to collect their belongings Thursday and Friday following a fire that destroyed several tents and ignited a number of propane tanks. The encampment has been permanently cleared and its residents dispersed. (Chris Bush/News Bulletin)
Occupants of Nanaimo’s Wesley Street encampment offered support following fire and displacement

City of Nanaimo permanently clears homeless camp over ongoing safety concerns

Pickleball game in Vancouver on Sunday, November 8, 2020. B.C.’s public health restrictions for COVID-19 have been extended to adult team sports, indoors and outside. THE CANADIAN PRESS/Darryl Dyck
711 more COVID-19 cases detected in B.C. Friday

‘Virus is not letting up and neither can we’

Robert Riley Saunders. (File)
First Nations Leadership Council demands justice for victims of B.C. social worker

Union of BC Indian Chiefs calls actions of Robert Saunders ‘nothing short of complete depravity’

B.C. NDP leader John Horgan releases his election platform, Vancouver, Oct. 6, 2020, featuring COVID-19 relief payments promised for most households. (B.C. NDP photo)
Next $1.5 billion in B.C. COVID-19 cash ‘prudent,’ Horgan says

New round of payments for household incomes up to $175,000

The opening day on Mount Washington this year was Dec. 4. Screenshot
Mount Washington opens on time, COVID-19 protocols in place

“We’re super excited - it’s been six months in the planning.”

Steve Metcalfe, Quality Foods Harewood store manager, holds a poinsettia and a Coins for Kids donation jar, two symbols of Christmas spirit. (Chris Bush/News Bulletin
Coins for Kids collects for Christmas causes in Nanaimo

News Bulletin fundraising for Great Nanaimo Toy Drive, Boys and Girls Clubs

Demonstrators, organized by the Public Fishery Alliance, outside the downtown Vancouver offices of Fisheries and Oceans Canada July 6 demand the marking of all hatchery chinook to allow for a sustainable public fishery while wild stocks recover. (Public Fishery Alliance Facebook photo)
Angry B.C. anglers see petition tabled in House of Commons

Salmon fishers demand better access to the healthy stocks in the public fishery

(Hotel Zed/Flytographer)
B.C. hotel grants couple 18 years of free stays after making baby on Valentines Day

Hotel Zed has announced a Kelowna couple has received free Valentines Day stays for next 18 years

Farmers raise slogans during a protest on a highway at the Delhi-Haryana state border, India, Thursday, Dec. 3, 2020. Prime Minister Justin Trudeau rejected the diplomatic scolding Canada’s envoy to India received on Friday for his recent comments in support of protesting Indian farmers. Tens of thousands of farmers have descended upon the borders of New Delhi to protest new farming laws that they say will open them to corporate exploitation. THE CANADIAN PRESS/AP-Manish Swarup
Trudeau brushes off India’s criticism for standing with farmers in anti-Modi protests

The High Commission of India in Ottawa had no comment when contacted Friday

Most Read