Canada’s Imperial Oil, one of the country’s biggest crude producers and refiners, said on Thursday it would raise capital spending and production next year as a volatile recovery of energy demand continues.
Chief Executive Brad Corson said at the company’s virtual investor day presentation that a recovery in global energy demand looked to be “highly uncertain” and dependent on the spread of COVID-19. Pandemic travel restrictions have crushed fuel demand, depressing oil prices, and forcing producers to cut costs and jobs.
Imperial plans to spend C$1.2 billion ($917.01 million) in 2021, up 33% from 2020. Upstream production looks to rise 5% to 415,000 barrels of oil equivalent per day.
The company, majority-owned by U.S. oil major Exxon Mobil Corp, said it would also aim to reduce greenhouse gas emissions intensity, a measure of pollution per barrel, by 10% by the end of 2023 from 2016 levels.
Imperial said it has already cut emissions intensity by more than 20% since 2013 and will achieve further reductions by improving productivity at its Kearl site and adopting new technologies. 29dk2902l