Canadian Natural Resources said on Thursday it expects production to increase in 2025, betting on higher demand amid tight supplies.
The energy producer forecast total production of 1.51 million to 1.55 million barrels of oil equivalent per day (boepd) for 2025.
The new production range represents a growth of 12% over 2024 levels. It had estimated a total production of 1.33 million to 1.38 million boepd for fiscal 2024.
Canadian oil producers in December had projected higher production for 2025, betting on resilient demand for Canadian crude in the U.S and international markets.
Fuel demand in the United States, the biggest destination for Canadian crude, is expected to rise in 2025 as U.S. industrial activity is likely to benefit from a cut in borrowing rates, according to the U.S. Energy Information Administration.
Natural gas prices surged more than 44% in 2024, the biggest annual gain since 2021, and are set to keep rising in Asia, Europe and North America in the coming months as colder weather forecasts trigger higher heating demand in key consumer areas.
“With our disciplined 2025 capital budget, low maintenance capital requirements and a long life low decline asset base, we target to generate strong returns on capital… while also reducing our net debt,” company CFO Mark Stainthorpe said.
The Calgary, Alberta-based company sees thermal and oil sands mining at 810,000 to 835,000 bpd in 2025, compared with the 724,000 to 743,000 bpd forecast in 2024.
It expects to spend C$6.2 billion ($4.31 billion) in 2025, largely in line with its 2024 forecast of C$5.42 billion ($3.77 billion).
(Reporting by Pooja Menon and Abhinav Parmar in Bengaluru; Editing by Shreya Biswas and Tomasz Janowski)