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Syncrude outage curbs ConocoPhillips oil sands production

Published 04/04/2017, 06:23 PM
© Reuters.  Syncrude outage curbs ConocoPhillips oil sands production
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  • ConocoPhillips (NYSE:COP) says the shutdown at the Syncrude oil sands facility in Alberta has limited production from its 140K bbl/day Surmont plant.
  • COP had to reduce output at the plant because it uses light synthetic crude from Syncrude to dilute tarry bitumen into a heavy blend that can flow through pipelines.
  • COP has not specified the reduction in crude volume, but combined with the Syncrude outage, up to 490K bbl/day, or nearly 20%, of the oil sands' 2.5M bbl/day of supply is potentially off the market; also, Suncor Energy's (NYSE:SU) 180K bbl/day Firebag thermal plant is undergoing planned maintenance this quarter, adding to the shortage of heavy crude.
  • Prices for heavy and synthetic Canadian crude have surged on tight supply and extended gains today.


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