Suncor Remains Cautious on Spending Amid New Pipeline Deal

Suncor Energy's CEO Rich Kruger says the company will remain cautious in its capital spending and expansions despite signing a non-binding agreement with Ottawa and Alberta. The deal, signed on July 2, set the stage for increased crude production and cleared a hurdle to building a new West Coast oil pipeline.

The memorandum of understanding (MOU) aims to push forward a massive carbon-capture project in Alberta's north. However, Kruger said Suncor is still determining how this MOU may affect its plans, stating that the company will be 'very thoughtful on long-term commitments and capital allocation.'

Suncor has set a goal to boost oil production by 100,000 barrels a day to reach nearly one million by 2028. The company's CEO said they didn't rule out increasing production if it presents value, but emphasized that the company's position remains unchanged.