Cenovus Energy Anticipates Increased US Refinery Output in 2024
Cenovus Energy anticipates increased production from its U.S. refineries in 2024 as the Canadian company’s two refineries have resumed operating at full capacity. Cenovus has faced production challenges following a fatal fire at its refinery in Toledo, Ohio, last year and an explosion at the refinery in Superior, Wisconsin, in 2018.
The company’s downstream throughput forecast for 2024 ranges between 630,000 and 670,000 barrels per day (bpd), compared to the expected range of 580,000 bpd to 610,000 bpd for this year.
Cenovus Energy‘s U.S.-listed shares experienced a 1.6% increase before the market opened.
Additionally, the company anticipates higher operating costs in 2024, attributing the increase to maintenance and repair activities. Cenovus, based in Calgary, Alberta, forecasts expenses ranging between C$4.5 billion ($3.35 billion) and C$5 billion in 2024. This is higher than the estimated costs for 2023, which fall within the range of C$4 billion to C$4.5 billion.
“We will remain focused on reducing costs and continued capital discipline,” Cenovus CEO Jon McKenzie said.
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Although global oil prices have moderated compared to last year, they remain at levels where companies can still drill profitably. Cenovus Energy has outlined plans to expand production at its Foster Creek, Christina Lake, and Sunrise oil sands projects.
For 2024, the company forecasts total upstream production in the range of 770,000 to 810,000 barrels of oil equivalent per day (boepd), in comparison to the expected range of 775,000 boepd to 795,000 boepd for the current year.
