Canadian Natural Pauses Oil Sands Projects Amid Government Negotiations

Canadian Natural Resources (CNR), Canada's largest oil producer, has put its mid- to long-term oil sands expansion projects on hold until binding agreements are finalized with the Canadian and Alberta governments. The company's CEO, Scott Stauth, made this announcement during a conference call.

The projects affected include the C$650-million, 30,000-barrel-per-day Jackfish project, the approximately C$2.5-billion, 70,000-bpd Pike 2 project, and the proposed 150,000-bpd Jackpine mine expansion. Engineering work for these projects was initially slated to begin this year.

Stauth emphasized the importance of getting the negotiations right, stating that 'it's extremely important that we get this right.' He also noted that all components need to work together to make the Pathways project a success, which aims to reduce greenhouse gas emissions from the oil sands through carbon capture and storage. The federal government has endorsed Alberta's vision for a new one-million bpd export pipeline to the Pacific coast, contingent on the Pathways project moving forward.

Canadian Natural raised its full-year production forecast for the second time this year, citing record production and stronger crude prices. The company now expects 2026 production to average between 1.637-million and 1.682-million barrels of oil equivalent per day (boepd). In the second quarter, Canadian Natural reported an adjusted profit of C$2.19 per share, beating analysts' estimates.