The Globe and Mail reports in its Friday edition that Canadian Natural Resources is suspending some oil sands production as heavy-crude prices in Western Canada sink below bargain-basement levels.
The Globe's Shawn McCarthy writes that in a statement on Thursday, Canadian Natural said it cut its production by up to 15,000 barrels a day in October and would curtail output by as much as 55,000 b/d in November and December to avoid selling into the deeply discounted market.
However, its executives say they expect the market to improve significantly over the coming year.
Canadian Natural said in a release announcing its third quarter earnings, "Due to widening price differentials driven by market access restrictions, the company made the pro-active and strategic decision to shut in, curtail and reduce activity on heavy crude oil production." President Tim McKay would not speculate how long the company would maintain the production cutback.
He said the prospects are good for a return to more normal markets by the end of 2019, with Enbridge's planned completion of a 350,000 b/d expansion of its Line 3 pipeline to the United States Midwest and an anticipated 250,000 b/d increase in crude-by-rail capacity.
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