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(Bloomberg) — Canadian Pure Sources Ltd., Canada’s largest oil and fuel producer, is aiming to lift manufacturing as excessive as 1 million barrels a day in 2023 for the primary time as the corporate ramps up drilling amid traditionally excessive costs.
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Mixed with pure fuel, manufacturing is forecast to extend by 56,000 barrels of oil equal a day from this 12 months to as a lot as 1.4 million barrels, the corporate stated in an investor presentation Wednesday.
Oil sands manufacturing, accounting for nearly 75% of oil output, will enhance about 5% as the corporate drills new nicely pads and reduces upkeep work at some services. Standard manufacturing is anticipated to develop about 4% as heavy output rises from the Clearwater formation in Alberta and within the Bonnyville and Lloydminster areas.
The oil large’s plans buck the business, which is being extra conservative in deploying money to new drilling at the same time as oil worth futures this 12 months commerce at larger ranges. Suncor Vitality Inc., the most important oil sands producer, expects output to extend from this 12 months by not more than 10,000 barrels a day to as excessive as 770,000 barrels of oil equal, the corporate stated in a convention name on Tuesday. MEG Vitality Corp., a smaller oil sands producer, will enhance output to as excessive as 105,000 barrels a day.
The corporate’s shares fell 40 cents to C$80.31 in Toronto on Wednesday as the corporate introduced its steering for subsequent 12 months.
(Updates with share worth in closing paragraph. A earlier model of the story corrected the time-frame for manufacturing.)
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