U.S. and Saudi Arabia Agree to Increase Oil Production to Balance Markets


From Genscape on Syncrude

On June 20, the 350 Mb/d Syncrude Upgrader experienced a power trip on a transformer forcing the production facility to shut, according to a company spokesman statement. A Suncor company spokesman said the project will be shut through July at least and they are performing a comprehensive assessment of when the site will return to service. Outside of this, the company communicated very little information. Rumored reports of a 92 percent cut to production for July recently circulated, which falls in line with the production impact the hydrotreater fire had last year.

News of the shutdown rippled across North America and global markets as the project represents approximately 8 percent of total Canadian oil production. While the impact is still unfolding, the unplanned shutdown of the facility last year gives us a few hypothetical scenarios to look at with the little information currently available.