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Oil sands give OPEC a boost by cutting production by half a million barrels

(Bloomberg) – Large oil sands producers in western Canada will produce nearly half a million barrels a day for the next month, which will help tighten global supplies as oil prices rise. Canadian Natural Resources Ltd. plans to perform 30-day maintenance on Horizon’s oil sands upgrader will reduce around 250,000 barrels of light synthetic crude oil production per day in April, company President Tim McKay said in an interview on Thursday. The work on the Horizon upgrader coincides with the maintenance work at other locations. Suncor Energy Inc. is planning a major overhaul of its U2 crude oil upgrader, which will cut production by 130,000 barrels per day for the entire second quarter. Syncrude Canada Ltd. will restrict 70,000 barrels per day during the quarter due to maintenance in a unit. The supply shortages in northern Alberta following a surprise decision by OPEC + not to increase production next month could further support the recent crude oil rally in prices. OPEC + had considered whether to restore up to 1.5 million barrels of production per day in April, but decided to wait. The Saudi-led alliance is closely monitoring other major oil producers to manage the entire world market and boost production in the north America has been the biggest problem in recent years – particularly from US shale, but also from Canada. “The US, Saudi Arabia, Russia, Canada, Brazil and other well-equipped countries with hydrocarbon reserves – we have to work together,” said Saudi Energy Minister Prince Abdulaziz bin Salman after the group meeting on Thursday. Read more: Saudis Bet “Drill “Baby, Drill” is over to encourage Pricier OilCanada’s contribution to balancing the market with less production, much like slowing production The US is not a deliberate market management strategy, but it matters. Even if the production cuts are short-term, it should the ailing oil sands industry will not be a problem for the Saudis in the long term. Judging from McKay’s outlook for the industry, “I can’t see much growth in oil sands because there will be less demand in the future,” he said. that we have to reduce our carbon footprint. ”After years of increasing production, Canada is the fourth largest crude oil producer In the world, expansion projects have all but stalled after two market crashes since 2014. Canada’s oil industry is being shunned by some investors like the Norwegian $ 1.3 trillion wealth fund, fearing the higher associated with oil sands extraction Carbon emissions will exacerbate climate change. These forces help make future oil sands growth unlikely, said McKay, whose company is one of the country’s largest producers. Oil sands upgrades turn the heavy bitumen produced in oil sands mines into light synthetic crude that benchmarks West Texas Intermediate and is similar to Brent. Syncrude Sweet Premium for April gained 60 cents on Thursday to $ 1.50 a barrel premium for WTI, its strongest price since May, data from NE2 Group shows. More articles like this can be found at bloomberg.com. Subscribe now to stay ahead of the curve with the most trusted source of business news. © 2021 Bloomberg LP

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