The chief executive officer of ConocoPhillips says he has no intention of permanently curtailing Canadian production as the oil giant moves to slash output at its Surmont oil sands operation in Alberta. In an interview with Bloomberg TV, Conoco CEO Ryan Lance did however single out the Canadian assets as possibly the only ones that aren’t generating positive cash flow in the current price environment. And for Conoco’s production as a whole, Lance sees more cuts before long. "We fully expect we’ll be curtailing more production when we hit June given the early indications that we see on prices for that particular trading month,” he said after stating “we just refuse to sell our crude at these types of prices." Citing low Western Canada Select prices, Conoco yesterday announced its plan to reduce output at the oil sands operation by 100,000 barrels per day, to 35,000 barrels. WCS, the benchmark price for the oil sands industry, hit a record low of less than US$3 a barrel this week. It traded Friday just below US$6, down almost 90 per cent in the past year. The production loss at Surmont is the biggest oil sands reduction so far in the current […]
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