Suncor Energy Inc. CEO Steve Williams mentioned he expects Alberta’s mandated oil-production cuts to finish sooner than deliberate after this system boosted heavy crude costs a lot that it made purchases unprofitable for U.S. refiners.
Alberta’s curtailment program — supposed to clear house on the province’s restricted pipelines and draw down a glut of oil that had constructed up in storage — has meant it’s now uneconomic for U.S. refiners to purchase crude from Alberta and foot the invoice to maneuver it by way of rail, he mentioned.
“The rail economics are severely broken, and numerous the rail actions are stopping or have stopped,” Williams mentioned Wednesday on Suncor’s earnings convention name with analysts. “That’s going to have the other influence to what the federal government needs.”
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Alberta has already lowered the curtailment by 75,000 bopd, and Williams mentioned it’s time to begin planning for a “comfortable exit” from the technique to keep away from extra unintended penalties.
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