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

Nine new COVID-19 cases announced in Interior Health region

The total number of cases since the pandemic started is now at 531 for the region

City councillor acclaimed as BC NDP candidate for Kamloops-North Thompson

The announcement was made Monday morning in Kamloops’ North Shore

Blaze takes commercial building in Louis Creek Industrial Park

Firefighters, paramedics and RCMP from Barriere and Chu Chua were on scene

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Two new COVID-19 cases reported in Interior Health

The total number of Interior Health cases since the beginning of the pandemic is now at 522

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

Canada’s population tops 38 million, even as COVID-19 pandemic slows growth

Immigration, the top population driver, decreased due to the pandemic

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

16 MLAs retiring from B.C. politics add up to $20M in pensions: Taxpayers Federation

Taxpayers pay $4 for every dollar MLAs contribute to their pensions

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

B.C. food and beverage producers set record sales in 2019

Farmed salmon again leads international exports

Most Read