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

Craft vendors allowed to re-join Goldstream Farmers Market

Dr. Bonnie Henry lightens restrictions, approves non-food items to be sold

Three people sent to hospital following serious crash in View Royal

Incident involved a motorcycle and one vehicle on Sunday afternoon

Saanich high school student wins free educational trip through Europe

Beaverbrook Vimy Prize centers on First, Second World War history

Province recognizes three Greater Victoria residents for work to combat racism

The three residents were recognized during the Multiculturalism and Anti-Racism Awards

Tour de Rock alum is newest Oak Bay Police officer

Const. Derek Brand did nine years as volunteer reserve officer

VIDEO: Injured bald eagle rescued in B.C. First Nations community

Bird suspected injured in fight, whisked off to Coquitlam rehab

Toronto Raptors’ Ujiri says conversations about racism can no longer be avoided

Thousands have protested Floyd’s death and repeated police killings of black men across the United States

B.C.’s Central Kootenay region declares state of emergency, issues evacuation orders

The evacuation alert covers all areas except the Cities of Castelgar and Nelson

‘I’m afraid’: Witnesses of wolf attack on senior near Prince Rupert worried about safety

Frank Russ shows where the unprovoked wolf attacked his father

Protesters prepare to rally against racism in front of Vancouver Art Gallery

Rally is in response to the deaths of black Americans and a Toronto woman

Man dies in ATV accident south of Nanaimo

Incident happened on backroad Friday night in Nanaimo Lakes area

Protesters rally against anti-black, Indigenous racism in Toronto

Police estimated the crowd to be between 3,500 and 4,000 and said there was no violence

Feds earmark $1.5M to support recovery of B.C., Indigenous tourism

B.C. money will be split between Vancouver Island and Indigenous tourism

‘We’re sick of it’: Anger over police killings shatters U.S.

Tens of thousands marched to protest the death of George Floyd

Most Read