Canadian Natural Resources Ltd . , the country’s largest oil and natural gas producer, is slashing capital spending next year by 20 per cent amid low commodity prices and pipeline problems, but said it is ready to reverse the bulk of the cuts if conditions improve. The company’s strategy reflects the uncertainty in the oil business. The price of Alberta heavy oil crashed earlier this fall, but has rallied. The Alberta government this week said it would order all major oil producers to cut output at the start of January to deal with an oversupply. Capacity to move oil by rail is set to rise, but pipelines are still full. Canadian Natural said on Wednesday it will spend $3.7-billion in 2019, down some $900-million from $4.6-billion in 2018. Most of the cuts are in its heavy-oil operations. Canadian Natural also said it could turn up spending by about $700-million if market dynamics shift. In such a case, the budget for 2019 could reach about $4.4-billion, down only $200-million, or 4 per cent, from this year. “Canadian Natural is built to be able to manage through low prices,” president Tim McKay told investors on Wednesday as the company detailed its […]
