Husky lowering heavy oil production

Another Canadian producer is trimming production of heavy oil in response to crude prices regionally discounted against global markets because of pipeline constraint.

Husky Energy, Calgary, has lowered its 2018 production guidance to investors by 10,000 boe/d “in light of wide Canadian heavy oil differentials” in the first quarter of the year.

It now expects its global production this year to average 310,000-320,000 boe/d.

It said it will substitute discounted crude from other producers for processing in its downstream operations.

Last month, Cenovus Energy Inc. said it is trimming production from thermal projects but didn’t lower its projection for average 2018 output (OGJ Online, Mar. 22, 2018).