Suncor president and CEO Mark Little prepares to address the company’s annual meeting in Calgary, Thursday, May 2, 2019.THE CANADIAN PRESS/Jeff McIntosh

Suncor CEO says he’s not counting on oil risk premium after Saudi attacks

Mark Little says situation is not that unusual

The CEO of Suncor Energy Inc. says his company isn’t counting on higher cash flow despite analyst expectations of a “risk premium” on crude oil prices in the wake of last weekend’s attacks on Saudi Arabian oil facilities.

Benchmark oil prices jumped Monday by more than 14 per cent but gave up some of their gains Tuesday after Saudi Arabia’s energy minister reported that 50 per cent of the production interrupted by the attack had been restored.

ALSO READ: Canadian inflation decelerates to 1.9% as gas prices weaken

Mark Little says market reaction to the sudden loss of some Saudi oil output was likely magnified because it occurred during a relatively quiet geopolitics period, but the situation is not that unusual.

He says the benefit to Canadian oil producers is that the incident forces consumers to be more aware of where their crude is coming from and how secure that source might be.

Speaking after participating in a conference in Calgary, he welcomed reports that Premier Jason Kenney spoke in favour on Monday in New York of a proposal put forward by companies including Suncor to ease provincial oil curtailments for producers who add crude-by rail capacity to help relieve a glut of oil in Alberta.

He says rail is the only short-term opportunity for Alberta producers to move more oil out of Canada because export pipeline expansions have been stymied.

“I think people will think a lot more about security of supply. And Canada is a great place to be buying your energy from,” Little said.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘So sorry:’ Man pleads guilty for gas-and-dash death of Thorsby gas station owner

Mitchell Robert Sydlowski was charged with second-degree murder, but the 29-year old pleaded guilty to the lesser offence

84 new cases of COVID-19 reported Friday

1,036 active cases across Alberta, 10,796 recovered cases

The photography trend that continues to climb: Best friend photo shoots

Rimbey photographer reflects on the growing demand for these lifestyle set shoots.

76 new cases of COVID-19 reported Thursday

Active cases at 1,036, 10,713 recovered cases

Wetaskiwin Regional Public Schools receive grant from Indigo Love of Reading Foundation.

WRPS has received $15,975 from the Indigo Love of Reading Foundation.

Premier Jason Kenney in Lacombe to introduce rural Internet

Shaw to provide 1g Internet to all AB residential customers

Widow of slain Red Deer doctor thanks community for support ahead of vigil

Fellow doctors, members of the public will gather for a physically-distanced vigil in central Alberta

VIDEO: World responds to B.C. girl after pandemic cancels birthday party

Dozens of cards and numerous packages were delivered to six-year-old Charlie Manning

U.S.-Canada pandemic border restrictions extended into September

‘We will continue to keep our communities safe,’ says Public Safety Minister Bill Blair

AB Infrastructure Minister announces $8,522,800 regional water transmission line

Funding is covered jointly by the province, Ottawa and benefiting municipalities

WE Charity registers as lobbyist, lays off staff, looking to sell real estate

WE Charity said its financial position has been greatly affected by the COVID-19 pandemic

Ermineskin Cree Nation has a new chief

There were seven challengers to incumbent, including NGCI president

Three people drown at Crescent Falls

Rocky Mountain House RCMP say the incident occurred Tuesday

Most Read