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Released November 08, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian Natural Resources Limited (CNR) (NYSE:CNQ) (Fort McMurray, Alberta) is aiming to produce more at a lower cost in 2018, after a long period where it and other exploration and production (E&P) majors learned to deal with weak commodity prices. The decision follows third-quarter results that indicated stronger production and higher realized prices for crude oil and natural gas liquids (NGL). Industrial Info is tracking more than $30 billion in active projects involving CNR, including almost $6 billion worth that are nearing or under construction.
CNR expects to spend $4.3 billion on capital items in 2018, down from the $4.9 billion projected for the current year. Overall production in 2018 is expected to range between 1.1 million and 1.2 million barrels of oil equivalent per day, a substantial increase from 2017's projected production of between 833,000 and 883,000 barrels.
At the top of CNR's project list is the $1.2 billion Kirby North steam-assisted gravity drainage (SAGD) production field and processing plant near Fort McMurray, Alberta. Drilling at the 40,000-barrel-per-day (BBL/d) project will begin next year, during which the company expects to spend $465 million to complete 49 net producing wells, 44 injector wells and construction of the processing plant. First steam injection is targeted for late 2019, and first production is targeted for the first quarter of 2020. For more information, see Industrial Info's project report.
CNR also is reducing expenditures for its Oil Sands Mining and Upgrading business, from the $1.7 billion forecast for 2017 to $1.38 billion budgeted for 2018. The company is wrapping up construction at the NWR Sturgeon Refinery project in Redwater, Alberta, which includes a $1 billion hydrocracker unit with the capacity to convert low-value gas oils to 50,000 BBL/d of product; a $1 billion gas-oil hydrotreater/VGO hydrocracker combo unit that will integrate a 32,000-BBL/d distillate diesel hydrotreater and a 20,000-BBL/d hydrocracker to produce a synthetic crude-oil blend; and $1 billion in offsite utilities to support the new units.
The refinery will be the only in the world designed to incorporate gasification and a carbon-capture-and-storage solution, while producing the cleaner, high-value products needed to meet North America's new low carbon standards, according to North West Redwater Partnership's website. The partnership is a 50:50 joint venture between CNR and North West Refining (Calgary, Alberta). For more information, see Industrial Info's project reports on the hydrocraker unit, combo unit and offsite utilities.
Canada's E&P companies have been enjoying a recovery in commodity prices that has boosted production, particularly in Alberta. One place that has seen a sharp turnaround is Grande Prairie, a small city in eastern Alberta that sits on the Montney Shale, a prolific natural gas and liquids hydrocarbon formation. Jobs dried up during the downturn, but producers and pipeline companies now are spending tens of billions of dollars to develop the area, according to Canada's Financial Post.
CNR is finishing construction on a $175 million natural gas processing & NGL production-plant expansion in Grand Prairie, which will bring the facility's capacity up to 200 million standard cubic feet per day of natural gas and 10,000 BBL/d of NGL, using a cryogenic process. The company also is at work on a pair of natural gas-drilling projects in the area: $25 million in upgrades at the Gold Creek field and $25 million in upgrades at the Karr Creek field, each of which involves drilling two or three wells. For more information, see Industrial Info's project reports on the processing plant, Gold Creek field and Karr Creek field.
CNR's revenues for its third quarter totaled $4.29 billion, compared with $2.34 billion in the same period last year. The company also reported net earnings of $684 million, compared with a net loss of $326 million in third-quarter 2016. Among CNR's most prominent achievements during the third quarter was the completion of the Phase III expansion at its Horizon oil sands project.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
CNR expects to spend $4.3 billion on capital items in 2018, down from the $4.9 billion projected for the current year. Overall production in 2018 is expected to range between 1.1 million and 1.2 million barrels of oil equivalent per day, a substantial increase from 2017's projected production of between 833,000 and 883,000 barrels.
At the top of CNR's project list is the $1.2 billion Kirby North steam-assisted gravity drainage (SAGD) production field and processing plant near Fort McMurray, Alberta. Drilling at the 40,000-barrel-per-day (BBL/d) project will begin next year, during which the company expects to spend $465 million to complete 49 net producing wells, 44 injector wells and construction of the processing plant. First steam injection is targeted for late 2019, and first production is targeted for the first quarter of 2020. For more information, see Industrial Info's project report.
CNR also is reducing expenditures for its Oil Sands Mining and Upgrading business, from the $1.7 billion forecast for 2017 to $1.38 billion budgeted for 2018. The company is wrapping up construction at the NWR Sturgeon Refinery project in Redwater, Alberta, which includes a $1 billion hydrocracker unit with the capacity to convert low-value gas oils to 50,000 BBL/d of product; a $1 billion gas-oil hydrotreater/VGO hydrocracker combo unit that will integrate a 32,000-BBL/d distillate diesel hydrotreater and a 20,000-BBL/d hydrocracker to produce a synthetic crude-oil blend; and $1 billion in offsite utilities to support the new units.
The refinery will be the only in the world designed to incorporate gasification and a carbon-capture-and-storage solution, while producing the cleaner, high-value products needed to meet North America's new low carbon standards, according to North West Redwater Partnership's website. The partnership is a 50:50 joint venture between CNR and North West Refining (Calgary, Alberta). For more information, see Industrial Info's project reports on the hydrocraker unit, combo unit and offsite utilities.
Canada's E&P companies have been enjoying a recovery in commodity prices that has boosted production, particularly in Alberta. One place that has seen a sharp turnaround is Grande Prairie, a small city in eastern Alberta that sits on the Montney Shale, a prolific natural gas and liquids hydrocarbon formation. Jobs dried up during the downturn, but producers and pipeline companies now are spending tens of billions of dollars to develop the area, according to Canada's Financial Post.
CNR is finishing construction on a $175 million natural gas processing & NGL production-plant expansion in Grand Prairie, which will bring the facility's capacity up to 200 million standard cubic feet per day of natural gas and 10,000 BBL/d of NGL, using a cryogenic process. The company also is at work on a pair of natural gas-drilling projects in the area: $25 million in upgrades at the Gold Creek field and $25 million in upgrades at the Karr Creek field, each of which involves drilling two or three wells. For more information, see Industrial Info's project reports on the processing plant, Gold Creek field and Karr Creek field.
CNR's revenues for its third quarter totaled $4.29 billion, compared with $2.34 billion in the same period last year. The company also reported net earnings of $684 million, compared with a net loss of $326 million in third-quarter 2016. Among CNR's most prominent achievements during the third quarter was the completion of the Phase III expansion at its Horizon oil sands project.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
