Canada’s Cenovus Energy Inc. (NYSE: CVE) said on March 22 it was running oil-sands production below capacity and stockpiling excess oil due to trouble with exporting through maxed-out pipelines to the U.S.
The company forecast first-quarter production to double from a year earlier, but blamed transportation bottlenecks for reduced prices of its crude, compared to U.S. alternatives.
Canadian heavy oil discount has widened against the West Texas Intermediate benchmark recently as growing inventories have led to a supply buildup.
“We’re taking steps to respond to a critical shortage of export pipeline capacity in Western Canada that is beyond our control and is having a negative impact on our industry and the broader Canadian economy,” Alex Pourbaix, Cenovus Energy’s CEO, said.
The Calgary-based company said it expected to produce 350,000 barrels per day (bbl/d) to 360,000 bbl/d this year, compared with 181,501 bbl/d a year earlier.
Cenovus maintained its full year production of 364,000 bbl/d to 382,000 bbl/d.
Recommended Reading
Aethon Cuts Rigs but Wants More Western Haynesville Acreage
2024-03-28 - Private gas E&P Aethon Energy has drilled some screamers in its far western Haynesville Shale play—and the company wants to do more in the area.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
OEP Completes Acquisition of TechnipFMC’s Measurement Solutions Business
2024-03-27 - One Equity Partners said TechnipFMC’s measurement solutions business will be rebranded as Guidant and specialize in measurement technology, automation solutions and global systems.
PE Investors Scoop Up Offshore Services Provider Acteon Group
2024-03-27 - Acteon Group, a U.K.-based subsea services provider serving customers in offshore oil, gas and renewables, was acquired by new private equity backers.
Daugherty: Feds Take Aggressive Posture on Oil, Gas Mergers
2024-02-01 - Newly released guidelines by the Department of Justice and Federal Trade Commission suggest that a post-deal, combined market share of more than 30% is potentially problematic.