Analysts expect to see lower Canadian oil production this year as producers follow the example of Cenovus Energy Inc. in slashing capital spending budgets amid tumbling oil prices. After seeing its shares losing more than half their value on Monday, Calgary-based Cenovus announced Tuesday it would cut its capital spending plan for 2020 by 32 per cent. It now aims for between $900 million and $1 billion in total capital spending, down from earlier plans for between $1.3 billion and $1.5 billion. Up to 9 oilsands projects cancelled after similar situation in 2014The oil price meltdown Monday was linked to a dispute between Russia and Saudi Arabia over plans to cut oil production. Under an Alberta program to give relief from its mandated oil production curtailments to companies that add crude-by-rail capacity, Cenovus had been increasing output in recent months.

Source: CBC News March 10, 2020 14:06 UTC