Husky Energy Cites Alberta Oil Cuts for Lower 2019 Production

Husky Energy Cites Alberta Oil Cuts for Lower 2019 Production
Canadian oil and gas company Husky Energy has lowered its production forecast due to the Alberta government's mandated oil cuts.

Husky Energy, Inc. has lowered its expected 2019 production from 300,000 barrels of oil equivalent per day (boepd) to a range of 290,000 to 305,000 boepd, the Canadian oil and gas company said Tuesday.

Husky cited “reductions associated with the Government of Alberta’s mandatory oil production curtailments” for the decline in forecasted output in 2019.

The company’s 300,000 boepd forecast, given in Dec. 2018, was said to account for Alberta’s imposed oil cuts.  

In its 2018 annual and 4Q 2018 earnings report, Husky said its Atlantic production volumes were impacted by 10,000 barrels of oil per day in the fourth quarter due to a temporary suspension of operations at its SeaRose FPSO vessel.

“It was a challenging quarter,” Husky CEO Rob Peabody said in a company release. “The oil spill on the East Coast was particularly disappointing, and we are continuing to work closely with the regulator to determine the root cause and apply learnings.”

Peabody also said they saw a “significant decline” in Brent and WTI oil prices and “extreme volatility” in the WTI-WCS spread.

Husky expects capital spending for 2019 to be in the range of C$3.3 to C$3.5 billion.



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