Suncor energy says it expects to increase production in the coming year, despite a drop in capital spending.
The Calgary-based energy firm says it projects average production will be in the range of 680,000 to 720,000 barrels of oil equivalent per day.
Capital spending is budgeted at $4.8 billion to $5.2 billion.
Suncor says the midpoints of these ranges represent a 13 per cent jump in production and an approximately $1 billion dollar reduction in capital spending.
It says operating costs for its oilsands operations are in the per barrel range of $24 to $27. The midpoint of the range represents a 37 per cent reduction since 2011. Syncrude operating costs per barrel are expected to be $32 to $35.
“Through our 2017 capital spending program, we’ve earmarked the capital required to bring two major growth projects, Fort Hills and Hebron to completion, while at the same time investing in our existing assets,” said Suncor president and CEO Steve Williams.
Suncor says approximately 40 per cent of its 2017 capital spending will be allocated to upstream growth projects, including Fort Hills and Hebron, which are both expected to start producing their first barrels by the end of 2017.