Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) says it has substantially reduced sustaining and maintenances capital requirements, even as the restarted Sunrise Energy Project in the Canadian oil sands continues to ramp up production and progress is seen on other projects. Industrial Info is tracking more than $12 billion in active Husky Energy projects.
Capital expenditures by the Canadian oil and gas producer for the first six months of 2016 were just more than C$1 billion ($760 million), down from more than C$1.5 billion ($1.14 billion) in the same period a year earlier, the company reported Friday. It said the Husky Midstream Limited Partnership reduces infrastructure funding requirements for new thermal oil sands production growth, and "fewer, more material plays" in Western Canada have led to reduced sustaining capital requirements. Annual upstream sustaining and maintenance capital requirements are down from a historical average C$2.3 billion ($1.75 billion) to C$1.8 billion ($1.37 billion), while downstream remains steady at about C$700 million.
Company executives gave an update of several operations and growth projects during the second-quarter 2016 earnings conference call with analysts.
Among other things, the Sunrise bitumen energy project in Alberta was restarted in June following the Fort McMurray wildfires, and production continues to ramp up with recent volumes of more than 30,000 barrels per day. For related information, see May 11, 2016, article - Fort McMurray Fire: Companies Continue Closings, Restarts Remain Uncertain.
Also, the rejuvenated Tucker thermal bitumen production operation, located near Cold Lake, Alberta, averaged about 20,000 barrels per day in June, up from 4,000 barrels per day at the end of 2010.
Average upstream production in the second quarter was about 316,000 barrels of oil equivalent per day, down from 341,000 barrels in the first quarter, the company said, citing planned turnarounds, the interruption at Sunrise due to the Fort McMurray wildfires, and reduced volumes from a gas operation in China.
Downstream, work continues on the initial stages of a crude oil flexibility project at Husky's Lima Refinery in Ohio, which will allow the 161,500-barrel-per-day facility to process up to 40,000 barrels per day of heavy crude feedstock. Initial capacity of 8,000 barrels per day is to be completed in 2018. Industrial Info is tracking capital projects valued at more than $300 million at the refinery.
Husky Energy reported that it swung to a C$196 million ($149 million) loss in second-quarter 2016 from a C$124 million ($94 million) profit in the same period of 2015. In addition to reduced cash flows, there were C$101 million ($77 million) in losses resulting from asset write-downs, impairments and dispositions.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
Capital expenditures by the Canadian oil and gas producer for the first six months of 2016 were just more than C$1 billion ($760 million), down from more than C$1.5 billion ($1.14 billion) in the same period a year earlier, the company reported Friday. It said the Husky Midstream Limited Partnership reduces infrastructure funding requirements for new thermal oil sands production growth, and "fewer, more material plays" in Western Canada have led to reduced sustaining capital requirements. Annual upstream sustaining and maintenance capital requirements are down from a historical average C$2.3 billion ($1.75 billion) to C$1.8 billion ($1.37 billion), while downstream remains steady at about C$700 million.
Company executives gave an update of several operations and growth projects during the second-quarter 2016 earnings conference call with analysts.
Among other things, the Sunrise bitumen energy project in Alberta was restarted in June following the Fort McMurray wildfires, and production continues to ramp up with recent volumes of more than 30,000 barrels per day. For related information, see May 11, 2016, article - Fort McMurray Fire: Companies Continue Closings, Restarts Remain Uncertain.
Also, the rejuvenated Tucker thermal bitumen production operation, located near Cold Lake, Alberta, averaged about 20,000 barrels per day in June, up from 4,000 barrels per day at the end of 2010.
Average upstream production in the second quarter was about 316,000 barrels of oil equivalent per day, down from 341,000 barrels in the first quarter, the company said, citing planned turnarounds, the interruption at Sunrise due to the Fort McMurray wildfires, and reduced volumes from a gas operation in China.
Downstream, work continues on the initial stages of a crude oil flexibility project at Husky's Lima Refinery in Ohio, which will allow the 161,500-barrel-per-day facility to process up to 40,000 barrels per day of heavy crude feedstock. Initial capacity of 8,000 barrels per day is to be completed in 2018. Industrial Info is tracking capital projects valued at more than $300 million at the refinery.
Husky Energy reported that it swung to a C$196 million ($149 million) loss in second-quarter 2016 from a C$124 million ($94 million) profit in the same period of 2015. In addition to reduced cash flows, there were C$101 million ($77 million) in losses resulting from asset write-downs, impairments and dispositions.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
