In a sign of a slowdown in the Canadian energy sector, Canadian Natural Resources said it cut its capital spending and production forecast as oil prices fall.
The company, one of the largest in the Canadian energy sector, said it was cutting its capital expenditures from around $7.2 billion to $5.2 billion. This, in turn, will result in total annual production forecast of around 863,000 barrels of oil equivalent per day, a decrease from the expected output of around 893,000 barrels of oil equivalent per day outlined last year
"Capital flexibility to quickly increase or decrease activity in the conventional operations remains an option for Canadian Natural, depending on the economic and pricing environment," the company said in a Monday statement.
A project in Alberta, Kirby North, will be deferred until oil prices stabilize, the company said. Elsewhere, the company said its regional portfolio was "vast" and production capacity will increase once commodity prices stabilize at levels that warrant continued investment.
International oil companies are trimming their spending plans for 2015 as oil continues to shed value. In December, Canadian Oil Sands Ltd. became one of the first in the region to cut back on spending for the year.
Last week, Canadian energy company ARC Resources Ltd. said it plans to sell more than 15 million shares to raise capital to fund operations in the slumping oil market.
