Suncor Energy Inc on Monday forecast higher capital expenditure and production for 2022 as the Canadian energy company bets on the recovery in crude and gas prices from pandemic lows.
With oil and gas prices climbing over $70 a barrel, Canada’s biggest producers are raising expenditure in 2022 to squeeze more barrels out of existing assets.
Rival Cenovus Energy also said it expects higher capital spend and output in 2022.
In October, Suncor doubled its dividend, reversing a cut made last year when lockdowns due to the COVID-19 pandemic hammered fuel demand. It also said it would buy back more shares than it previously planned and repay debt faster.
The company estimates 2022 spending to be $4.7-billion, higher than its 2021 forecast of between $3.8-billion and $4.5-billion.
Suncor expects total production to be between 750,000 and 790,0000 barrels of oil equivalent per day (boepd), about 5 per cent higher than the expected 2021 levels, supported by the ramp up of the Fort Hills oil sands project to full rates.
The Calgary, Alberta-based firm said its downstream business is expected to deliver throughput on par with 2019 levels as consumer demand in 2022 is expected to continue to increase from current levels.
It expects refinery throughput to be between 430,000 and 445,000 barrels per day (bpd), higher than 2021 expectations of 415,000 and 445,000 bpd.
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