Suncor Holds Back on Production Growth Amid Government Support

Suncor Energy's CEO Rich Kruger stated on Wednesday that his company is not yet prepared to accelerate production growth, despite recent government support for Canada's oil industry. The comments from Suncor come as the Canadian and Alberta governments have promised large-scale policy reforms aimed at boosting oil growth in the country.

The federal and Alberta governments have implemented policies to improve relations with the oil industry, which previously opposed many environmental policies. Prime Minister Mark Carney has endorsed a new 1 million barrel per day export pipeline to the Pacific coast, but stated that his support is contingent on the Pathways project going ahead. This project would reduce greenhouse gas emissions from the oil sands.

Suncor's plans for production increases remain unchanged since its March investor day, with the company expecting to grow upstream production by about 100,000 bpd by 2028. The CEO mentioned that Suncor retains the option to ramp up faster if desired.