Company’s head says most of the oil and gas industry has been cautious over the past two years but he expects that to change
has forecast a bump in its capital spending next year, as the Calgary-based company looks to increase both oil production and refining.
“Almost overwhelmingly, most companies were really just spending the bare minimum to sustain production, if they even sustained production. We’re finally at a point now where I think most companies have recovered their balance sheets to a position of strength,” he said. Cenovus’ 2023 budget earmarks up to $1.7-billion for a range of projects to improve reliability and efficiency in the oil sands, including at its Christina Lake, Foster Creek and Sunrise sites, and at its Lloydminster Refinery on the Alberta-Saskatchewan border, where it intends to work on small capacity-expansion projects.
Husky Energy Inc., which owned the majority of the expansion project before Cenovus acquired the company last year, paused West White Rose in March, 2020, when the COVID-19 pandemic obliterated oil demand and prices.That work has recently ramped up at the Port of Argentia, about 130 kilometres west of St. John’s, where a partly built concrete gravity structure on dry land is currently dwarfed by a towering crane. Eventually, the structure will rise to 145 metres and be moved out to sea.
What the Cenovus budget doesn’t include is cash for the huge oil sands carbon capture project being planned by the Pathways Alliance, a multicompany group that aims to reduce greenhouse gas emissions from oil sands production to net-zero by 2050. The project would lower emissions from oil sands facilities by sending their excess carbon dioxide through a pipeline to a sequestration hub in Cold Lake, Alta.
improving the energy efficiency of their facilities and lowering methane pollution. But he added that larger joint plans, such as
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