Page 10 - NorthAmOil Week 08 2023

NorthAmOil PERFORMANCE NorthAmOil

Suncor to reduce 20% contractor

work force in 2023

CANADA SUNCOR Energy is targeting a 20% reduction barrels of oil equivalent per day in the fourth
in its contractor workforce in the current year quarter of 2022, representing a 2.7% increase
as it deals with inflationary pressures and sup- compared with 743,300 boepd in the same
ply chain issues that are driving costs upwards, quarter of 2021, the company said in its earnings
according to the company’s interim CEO, Kris statement.
Smith. The company’s total oil sands production in
The company is focused on cash operating the final quarter of 2022 was 688,100 barrels per
costs and will work through that in 2023, he said day, compared with 665,900 bpd in the fourth
on an earnings call in mid-February. quarter of the prior year and representing a 4%
The workforce reduction will take place in increase. The company’s
Suncor’s mining and operating business in an Suncor uses both mining and steam-assisted
effort to offset “extreme” inflation that the com- gravity drainage (SAGD) technology to extract total oil sands
pany had to deal with during the second half of raw bitumen from its resources in northern
2022, Smith said. He added that wages, labour Alberta. production in
costs and the price of materials such as steel, The company’s non-upgraded bitumen pro-
as well as fuel, had contributed to the market duction increased to 170,600 bpd in the fourth the final quarter
inflation. quarter of 2022, compared with 150,900 bpd of 2022 was
Smith did not disclose Suncor’s cash oper- in the fourth quarter of 2021. Meanwhile, Sun-
ating cost. But a fourth-quarter investor pres- cor’s synthetic crude oil (SCO) production was 688,100 barrels
entation posted on the company’s website on 517,500 bpd in the fourth quarter of 2022, com-
February 14 said that for the current year for its pared with 515,000 bpd in the same quarter of per day.
oil sands operations the company has set cash the previous year.
operating cost guidance of CAD30-33 ($22-24) Nearly 70% of Suncor’s production con-
per barrel. sists of SCO, which “commanded premium
For its flagship Fort Hills and Syncrude facili- pricing due to higher distillate cut relative to
ties, Suncor has set cash operating cost guidance WTI [West Texas Intermediate],” Smith said.
of CAD33-36 ($24-27) per barrel and CAD39- He noted that the remaining 20% consisted
43 ($29-32) per barrel respectively. of non-upgraded bitumen from in-situ oper-
Suncor’s total upstream production – which ations and 10% came from the conventional
includes oil sands assets in Alberta and offshore exploration and production segment, which
oilfields in Newfoundland and Labrador in includes crude oil production in Atlantic Can-
Atlantic Canada and in the UK – was 763,100 ada and the UK.™

P10 www. NEWSBASE .com Week 08 23•February•2023