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
Equitrans Delays WV-VA Mountain Valley Natgas Pipe Again, Boosts Cost
2024-02-20 - U.S. energy firm Equitrans Midstream delayed the estimated completion of its Mountain Valley natural gas pipeline from West Virginia to Virginia to the second quarter from the first quarter due in part to adverse weather in January.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.
Early Startup of Trans Mountain Pipeline Expansion Surprises Analysts
2024-04-04 - Analysts had expected the Trans Mountain Pipeline expansion to commence operations in June but the company said the system will begin shipping crude on May 1.
Kinder Morgan Exec: Don’t Count Out Midstream in M&A Frenzy
2024-04-02 - Kinder Morgan’s Allen Fore said 2024 should be an ‘interesting’ year in M&A during a discussion at DUG GAS+ Conference and Expo.
Balticconnector Gas Pipeline Back in Operation After Damage
2024-04-22 - The Balticconnector subsea gas link between Estonia and Finland was severely damaged in October, hurting energy security and raising alarm bells in the wider region.