Advertisement

Husky Energy is cutting spending by $1 billion this year

The Husky Energy upgrader facility in Lloydminster, Saskatchewan.
The Husky Energy upgrader facility in Lloydminster, Saskatchewan. Larry MacDougal / The Canadian Press Images

Husky Energy Inc. is cutting spending this year by $1 billion in the wake of the downturn in the global energy market.

The Calgary-based energy company says it’s reducing its capital spending program for this year by $900 million.

READ MORE: Husky Energy reports $2.3B fourth quarter loss

Husky says it will also find another $100 million in cost-saving measures.

The company expects its capital investments to total between $2.3 billion and $2.5 billion this year, down from its earlier plan for between $3.2 billion and $3.4 billion.

READ MORE: New shipping rules expected to impact Canadian oilsands industry in 2020

Story continues below advertisement

It says investment in resource plays and conventional heavy oil projects in Western Canada has been halted, with a focus on optimizing existing production and lowering costs.

Husky has also suspended drilling of sustaining pads at all thermal operations.