Suncor is reducing its capital spending next year.
The energy giant has budgeted their spending between $4.8 and $5.2 billion for 2017. They also plan on increasing production up to 720, 000 barrels a day on average next year.
Suncor says the midpoint of these ranges represent a year over year increase to production of more than 13 per cent and a reduction of capital spending by roughly a billion dollars.
“We continue to focus on delivering on our commitments and making decisions that demonstrate capital discipline, while reflecting our long-term vision for the company,” says Steve Williams, president and chief executive officer, in a release.
Less than half of of their spending for next year is allocated towards upstream growth project, including Fort Hills, which is located roughly 90 km north of Fort McMurray.
The project is expected to produce oil by the end of 2017.