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

B.C's COVID-19 dashboard shows the peaks and valleys of cases prior to the record daily report of 132 on April 9, 2021. (Dashboard image)
Interior Health has record day of COVID-19 cases

132 cases reported Friday, April 9, more deaths in Vernon hospital outbreak

(File photo)
Water quality advisory rescinded for Lakeview/Rose Valley Water System

There is no other water quality advisories in West Kelowna

Passengers make their way through Montreal–Trudeau International Airport in Montreal, Saturday, December 19, 2020, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Dining indoors at YLW’s White Spot allowed despite public health orders

Airport post-security restaurants and BC Ferries cafeterias are exempt from the public health order

(Stock photo)
Snow levels above normal in Okanagan

Spring temperatures, rainfall will affect risk of flooding

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

Vernon Secondary School. (Google Maps)
Case of COVID-19 at North Okanagan high school

VSS exposure announced late Friday, April 9

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

The Royal’s 1951 visit to Revelstoke. (Photo by Revelstoke Museum and Archives #17)
PHOTOS: Prince Philip visited Revelstoke – twice

The prince died April 9 at the age of 99

Nolan's Pharmasave in downtown Vernon received 200 AstraZeneca COVID-19 vaccines Friday, April 9, 2021. (Brendan Shykora - Morning Star)
AstraZeneca vaccines arrive at Vernon pharmacies

Four pharmacies in the city received doses of the COVID-19 inoculant Friday

The RCMP were called to the Alchemy Studio on Thursday, April 8. (Contributed)
Revelstoke yoga class fined for defying COVID-19 orders

The RCMP were called to the Alchemy Studio on April 8

An East Hill resident had their leaf bags torched in front of their home overnight April 8. Less than two weeks prior their garbage can was lit on fire too. (Taryn Allen photo)
Garbage, leaf fires spark fear in North Okanagan

First an East Hill residents’ trash can, then bagged leaves were lit on fire

Okanagan-based All Are Family Outreach Society, which provides support to those struggling from Armstrong to Kelowna, is in need of a new headquarters after leaving a Winfield church in June 2020. (All Are Family Outreach photo)
Okanagan outreach society in ‘desperate’ need after storage unit break-in

All Are Family Outreach had $4,000 in tools stolen from its donation shipping container

Most Read