CIBC predicts spending cuts in oil sands
Jul 18, 2012 at 5:02 am in Business, News by tyler.king
CIBC is predicting some big spending cuts for oil sands companies this year.
With earnings season kicking off this week, analyst Andrew Potter says producers are likely to reconsider expansion plans because of low prices.
He says the most likely to do that is CNRL; its latest budget was based on prices being 104 dollars a barrel, and they ended up being closer to 90.
Potter says that company could cut spending by as much as a billion dollars.
But he also says Nexen is in good shape with improvements at Long Lake; and companies with refineries like Suncor and Cenovus will be less hard-hit by the low prices.
Published July 18, 2012