In its 2016 guidance this week, Suncor Energy offered a flexible capital spending program of between C$6.7 billion and C$7.3 billion and average production of 525,000 to 565,000 barrels (bbl) of oil equivalent per day. Suncor’s projected oil sands cash operating costs per barrel (excluding Syncrude) of $27/bbl to $30/bbl continues a multiyear trend that has seen Suncor reduce its oil sands cash costs by more than 25% since 2011.
“Our oil sands production is expected to be slightly reduced in 2016, versus 2015, as a result of significant planned maintenance activities scheduled at various facilities, including our first five year full turnaround at the U2 upgrader and major maintenance at Firebag,” said Steve Williams, Suncor president and CEO. “We remain focused on achieving further reliability improvements across our operations. And, we’ll continue to build upon the momentum gained in 2015 in reducing cash costs per barrel at our oil sands operations.”
Approximately 55% of the company’s 2016 capital spending program has been allocated toward growth projects, the vast majority of which are in the Upstream segment. The remainder is expected to be directed toward sustaining capital investments that support safe, reliable and efficient operations.
Suncor’s 2016 budget incorporates flexibility to respond quickly to any further deterioration in market conditions. Both capital and operating expenditures can be scaled back to ensure the company continues to live within its means.