Syncrude cuts May deliveries 35pc

OREANDA-NEWS. May 13, 2016. Syncrude Canada reduced total May deliveries to customers by 35pc on 9 May after shutting production because of wildfires in northern Alberta.

Several other Alberta oil sands producers, including Shell Canada and Nexen Energy, have cut May deliveries. May deliveries of both synthetic crude oil (SCO) and heavy crude have been reduced.

Syncrude during the week ending 6 May shut 350,000 b/d of production at its Aurora and Mildred Lake facilities.

Shell Canada on 9 May restarted production at reduced rates at its Albian Sands mining operation after shutting production on 3 May. The Albian Sands operation supplies the company's 255,000 b/d Scotford upgrader.

Nexen shut its 72,000 b/d Long Lake facility on 4 May. Long Lake produced just 13,946 b/d of SCO in January, the most recent month for which Alberta Energy Regulator data are available.

The company on 16 January shut down its upgrader and reduced rates at its SAGD operation following an explosion.

Syncrude climbed in April trade to the highest level since July 2013 trade as producers had planned extensive upgrader maintenance for the month. That suggests that little SCO was in storage to replace production taken offline because of the wildfires.