Oil Sands Pipeline Shortage Takes Toll as Cenovus Cuts Output
- Canadian producer says it’s operating at reduced rates
- Pipe, rail constraints pinch industry even as output grows
Photographer: Brent Lewin/Bloomberg
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Western Canada’s pipeline and rail constraints are starting to force the hands of oil sands companies, with Cenovus Energy Inc. announcing a slowdown in production because of difficulties shipping its crude.
The Calgary-based producer said its Christina Lake and Foster Creek complexes have operated at reduced levels since February, in a statement released Thursday. Cenovus shares slipped as much as 6.1 percent in Toronto and fellow oil sands leaders Suncor Energy Inc. and Canadian Natural Resources Ltd. fell as well.