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Image Source: Indeed Reuters reported that Canadian oil and gas producer Husky Energy Inc on Thursday cut its 2019 capital expenditure program by about 8 per cent, or CAD 300 million, citing Alberta’s mandatory curbs on output and lower oil prices. The company now expects 2019 capital expenditure of CAD 3.4 billion, lower than the CAD 3.7 billion it forecast at its Investor Day in May 2018. Husky forecast average annual 2019 production to be about 300,000 barrels of oil equivalent per day (boepd). The company had estimated annual production in the range of 310,000 to 320,000 boepd for 2018. Alberta earlier this month mandated temporary oil production cuts to deal with a pipeline bottleneck that has led to a glut of crude in storage and deep price discounts on Canadian crude. Producers will be forced to cut output by 8.7 per cent, or 325,000 barrels per day, until the excess crude in storage is drawn down. Husky said that "The company retains further flexibility to reduce capital spending, including the ability to pace development of growth projects that are currently in flight."
