CANADIANS TO BOOST UPSTREAM SPENDING

The Canadian Petroleum Association estimates upstream spending of $8-8.5 billion this year in Canada, compared with an estimated $6.4-6.8 billion in 1990. A number of Canadian companies have disclosed plans to boost spending for 1991. Shell Canada Ltd. will hike capital and exploration outlays to $1.1 billion, double its 1990 spending. The budget includes $800 million for oil and gas exploration and development. A major item will be $405 million for development under way in Caroline sour gas

April 15, 1991

2 min read

The Canadian Petroleum Association estimates upstream spending of $8-8.5 billion this year in Canada, compared with an estimated $6.4-6.8 billion in 1990.

A number of Canadian companies have disclosed plans to boost spending for 1991.

Shell Canada Ltd. will hike capital and exploration outlays to $1.1 billion, double its 1990 spending.

The budget includes $800 million for oil and gas exploration and development. A major item will be $405 million for development under way in Caroline sour gas field, 75 miles northwest of Calgary.

Shell also will spend $270 million on downstream projects, including $110 million to upgrade service stations.

Shell forecast expenditures of $3.6 billion during the next 5 years, including $1.9 billion for exploration and development and $1.2 billion for the oil products division.

Petro-Canada will increase capital and exploration spending by $150 million from last year's level to $860 million.

First sale of the state oil company's stock is expected later this year. Company Chairman Bill Hopper said access to equity markets will allow Petro-Canada to capitalize more fully on its opportunities.

Imperial Oil Ltd. will increase spending to $800 million from $668 million in 1990.

PanCanadian Petroleum Ltd., Calgary, plans to hike spending to $415 million from $339.6 million in 1990, while Norcen Energy Resources Ltd., Calgary, will boost spending to $310.7 million from $236.2 million last year.