Suncor Projects Higher Crude Output, Lower Spending for 2025
(Reuters) — Suncor Energy on Thursday projected higher oil and gas production and lower spending in 2025, as it aims to boost output from its oil sands assets while keeping a tight lid on costs.
The second-largest Canadian oil producer expects production to be between 810,000 and 840,000 barrels per day (bbl/d) next year, up from its 2024 estimate of 770,000 to 810,000 bbl/d.
Suncor's operations have steadily improved since former Exxon Mobil executive Rich Kruger took over as CEO in April 2023.
Canadian oil producers have been encouraged to lift their production targets as export capacity has increased since the startup of the Trans Mountain Pipeline expansion project earlier this year.
Suncor also forecasts a slight rise in refinery throughput volumes between 435,000 and 450,000 in 2025. It expects refining utilization to be between 93% and 97%.
The U.S. Energy Information Administration predicts increased fuel demand in the United States, Canada's largest crude market, due to an anticipated uptick in industrial activity.
Still, U.S. consumption of Canadian oil could take a hit if President-elect Donald Trump imposes a 25% import tariff.
Suncor expects capital expenditure for 2025 to be between C$6.1 billion ($4.31 billion) and C$6.3 billion, compared to the current year's C$6.3 billion to C$6.5 billion forecast.
Capital spending next year will remain focused on the development of Mildred Lake West Mine Extension in Alberta and the offshore West White Rose project among other areas, the company said.
($1 = 1.4159 Canadian dollars)
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