Canadian Natural Resources forecasts higher 2021 production, spending

Dec 9 (Reuters) - Canadian Natural Resources Ltd, said on Wednesday it expects to raise production in 2021 and forecast capital spending to be about C$3.21 billion ($2.51 billion), higher than 2020 forecast of C$2.7 billion as the company bets on a faster rebound in demand and prices from pandemic lows.

Canadian oil companies are restoring production they had to shut-in to counter a steep price drop this year as the COVID-19 pandemic hammered fuel demand. Some are raising spending and production forecasts for next year, but remain cautious due to uncertainty over how long the pandemic will last.

The company plans to increase spending on natural gas production due to improving natural gas strip pricing and expects to raise output by about 11% in 2021.

The oil and gas producer also said it expects production of 1.19 million barrels of oil equivalent per day (boepd) to 1.26 million boepd next year, higher than the 1.16 million boepd it estimates for 2020.

Last month, peer Imperial Oil said it planned to spend C$1.2 billion in 2021, up 33% from 2020 while Suncor Energy Inc forecast higher production and spending targets for fiscal year 2021.

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