Oil Sands Producers Raise Output by Curtailing Maintenance

Canadian oil sands companies have found a way to ramp up production in the face of oil prices: curtailing lengthy repairs to equipment.

Canadian Natural Resources Ltd., Imperial Oil Ltd. and others are extending maintenance cycles to two-years from one, which saves on capital expenditure, increases output and effectively offsets declining profits from crude prices that have fallen 11% in the past year. Suncor Energy Inc., meanwhile, completed a major coke-drum replacement at its Base Plant more than 3 weeks faster than planned, allowing the company to cut capex guidance by C$400 million in 2025.