One of the largest Canadian oil companies, the list of potential traps in the decision of the Alberta government to reduce oil production in the province.
As part of the slippery expenditure publication on Friday, 2019, Suncor noted that the reduction of production could have a negative impact on the company.
Though most of the oil lever supports this movement, three of the largest oil and gas companies in Alberta – Suncor, Husky Energy, and Imperial Oil are opposed. Companies have considerable oil refining and retail business, and therefore have little impact on oil prices.
The government intends to stop oil production in the first three months of 2019 by halting oil production at 325,000 barrels per day, and 95,000 barrels per year in the remaining year.
Most importantly, Suncor underscored the potential unexpected consequences of a government decision that would come into force in January:
- The impact of a safe and reliable object on the workstation level, especially when the company is usually operating without high-level maintenance during the cold winter months. Suncor says it does not endanger the safety of its employees and contractors.
- Influence on crude oil in Alberta, affecting export restrictions on Alberta.
- Do not count on historical and recent performance at Syncrude after unplanned hate in the beginning of this year.
- Partial attention is paid to Fort Hills production after the completion of the third quarter of 2018.
- Influencing pipeline commitments that are long-term or payable to the US Gulf.
- Influence of diesel fuel consumption at home used in mining.
Suncor's oil products facilities are designed to work with minimal rates for safe and reliable operation, said CBS News Executive Secretary, Sneet Setal.
Seetal also claimed that the said parts were "equidistant" to Suncor.
According to some experts, Suncor believes that the two objects are not fully operational in 2018, which will be ordered by section.
For example, the production of the Fort Hills pit has increased production throughout the year, and the average oil productivity was much lower than the production capacity of the plant, similar to 2019.
This is the case for Syncrude, which was a downturn in production during the summer months. The plant lasted for a long time, so its productivity was reduced. According to the Alberta government, in order to make a decision to cut down each company, it will use the basic benchmark for the best half-year in half a year.
Suncor is also the owner of both objects.
"IHS Markit's oil expert Kevin Byrne says:" It is particularly appropriate to say that there is an unfavorable situation.
The policy may affect other oil products, including natural gas and condensate, as oil products are a major consumer of both products. Condensation or Solvent is a super lightweight oil that helps to absorb thick bitumen produced in Alberta and help it flow through the pipes.
Birn said that the condensate market might have a break. In addition, the natural gas sector predicts the increase in oil products in 2019, but will probably no longer exist.
"We do not think that oil products will be consuming less natural gas due to a curtailment, but it will not only increase equally," he said.
Other possible consequences may be that some oil companies may not be able to send specific types and volumes of oil to continental oil refineries. Some contracts or obligations may not be fulfilled.
"They may not be able to deliver their promise to the plant," says Byrne.