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.

Just Posted

Manna hands out gift cards to those in need in Parksville Qualicum Beach area

Volunteers say it makes a big difference during the holidays

Business increasing in Qualicum Beach, though labour can be hard to find

Business Walk hosted by Chamber of Commerce surveyed 61 businesses

Orca Place residents take time to clean up garbage in Parksville

‘We have to change all these people’s perspectives and outlook on us’

Aid a priority for idled Vancouver Island loggers, John Horgan says

Steelworkers, Western Forest Products returning to mediation

Ravensong Waterdancers bring home provincial awards

Club invited public to watch members perform routine Dec. 15

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

VIDEO: Fire destroys Big White Ski Resort chalet

Social media eulogies peg the property, nicknamed “The Pharamacy,” as both loved and hated

Prince George RCMP use bait packages to catch porch pirates over the holidays

First-in-Canada program with Amazon looks to combat parcel theft

Nanaimo mechanical engineer creates thief tracking program

Nanaimo Thief Tracking lets users plot and share information about thefts online

Mayor wants B.C. to institutionalize severely mental ill people who are homeless

Those suffering from mental health conditions, such as schizophrenia, need specialized care, mayor says

Five things of note from Trudeau’s mandate letters to his ministers

Some marching orders come from the Liberal Party’s campaign, while others are new additions

Scheer’s resignation tips party into internal war over school tuition payments

The Conservatives have a Toronto convention already scheduled for April

Most Read