By Michael Bellusci
Calls have been mounting for Canadian producers to cut production in light of rock-bottom domestic oil prices and a lack of demand. Athabasca’s Hangingstone Project is an oil sands steam-assisted gravity drainage (SAGD) operation near Fort McMurray, with an operating break-even price of about $37.50 a barrel for Western Canadian Select, according to the company’s statement.
Western Canadian Select traded just under $12 Friday, according to data compiled by Bloomberg.
Hangingstone produced about 9,500 barrels per day as of February, according to energy bank Tudor Pickering Holt & Co.
Athabasca’s Hangingstone is a smaller project, but a “further indication of what we anticipate will be a large-scale shut-in response by the oil sands,” analysts from Tudor told clients in a note early Friday.
Industry leader Suncor Energy Inc. said in March it will shut in one of its two so-called trains at its two-year-old, 194,000 barrel-a-day Fort Hills oil sands mine.