Canadian oil producer Suncor Energy is well-positioned compared to many of its competitors to weather threatened U.S. tariffs, CEO Rich Kruger said on Thursday.
On a conference call with analysts, Kruger said between 60% and 65% of Calgary, Alberta-based Suncor’s production stays in Canada, either to be refined or shipped off the British Columbia coast via the Trans Mountain pipeline.
The integrated nature of the second-biggest Canadian oil producer’s assets gives the company a “natural hedge” against tariffs, compared to other Canadian oil producers who move their crude to U.S. refineries, Kruger said.
“I think all Canadian companies are going to experience the impact differently,” he said. “If we were in a world of tariffs, I like our position relative to our peers.”
The Canadian crude industry has been bracing for U.S. President Donald Trump’s planned tariffs, as most of Canada’s roughly 4 million barrels per day of oil exports go to the U.S.
Trump on Monday suspended his plan for 25% tariffs on most products from Canada and Mexico and a 10% tariff on Canadian energy products for 30 days, in return for concessions on border and crime enforcement.
“I don’t think anyone on the planet knows exactly what is going to happen on tariffs,” Kruger said.
Suncor and other Canadian oil producers have benefited from the opening last year of the Trans Mountain pipeline expansion, which has enabled oil sands producers to boost output by offering additional export capacity.
The pipeline expansion has given Canada an alternative route to export more volumes of crude directly to Asia and reduced the country’s reliance on shipping its oil to the United States.
Suncor said on Wednesday it achieved record oil production in the fourth quarter of 875,000 bpd, up from 808,000 bpd a year earlier.
The company said in December it is aiming to increase oil output in 2025 by up to 5% as it works to improve its performance and reduce costs from its oil sands sites.
In a research note Wednesday, TD Cowen analyst Menno Hulshof said Suncor’s 2025 production guidance “reflects conservatism” and said the company’s improved output and financial performance last year could be a “new normal” for Suncor.
(Reporting by Amanda Stephenson; Editing by Rod Nickel and Nia Williams)