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What is the difference? Suncor shutdown of one of two production trains while Cenovus brought back 60,000 barrels a day in June.
CALGARY — Two of Canada's biggest oilsands producers are taking different approaches to restoring production that was shut down during the pandemic lockdowns as signs of an economic recovery and higher oil prices emerge.
Both Cenovus Energy Inc. and Suncor Energy Inc. reported millions of dollars in losses in the second quarter as they throttled back oil production amid a global crude market awash in surplus barrels.
However, while Cenovus brought back 60,000 barrels a day in June to take advantage of higher bitumen prices, Suncor signalled Thursday the shutdown of one of the two production trains at its 194,000-bpd Fort Hills oilsands mine could remain in place for some time.
"In response to the sharp decline in oil prices in April, we quickly reduced production volumes at our oilsands operations while continuing to steam and store the mobilized oil in the reservoir," said Cenovus CEO Alex Pourbaix on a Thursday conference call.
"When the market price for Western Canadian Select (bitumen-blend oil) increased almost 10-fold in June compared with April, we acted fast to ramp our oilsands production back up to take advantage of the improved pricing."
The increase in WCS to an average of C$46.03 per barrel in June from C$4.92 in April prompted a boost in production to record levels at Cenovus's Christina Lake operations in northeastern Alberta, the Calgary-based company said.
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