WINNIPEG, Manitoba (Reuters) - Suncor Energy, Canada’s second-biggest oil producer, will keep capital spending flat next year if North American oil prices remain around current levels, Chief Executive Mark Little said on Thursday.
Little said capital spending would stay flat if West Texas Intermediate prices look to hover around $35 per barrel, and raise spending by 10-15% if prices pass $40 per barrel.
Global oil producers are cutting costs and jobs aggressively after pandemic travel restrictions hit fuel and oil demand.
Little, speaking on a quarterly call, said Suncor SU.TO expected demand for refined products, which include gasoline and jet fuel, to soften if the pandemic's second wave results in strict lockdowns. He said the hit to demand is not likely to be as severe as it was in spring.
“Lots of governments are working hard to keep their economies going,” Little said.
The company looks to increase production by 10% next year, he said.
Reporting by Rod Nickel in Winnipeg, Manitoba
Our Standards: The Thomson Reuters Trust Principles.