Canadian Natural Resources forecasts higher spending in 2022

Canadian Natural Resources Ltd on Tuesday joined its rivals in forecasting higher capital expenditure in 2022 as it bets on a sustained recovery of oil and gas prices from the pandemic-driven historic lows.

Canadian producers are raising their full-year expenditures as they benefit from rallying crude and gas prices. However, companies are opting to spend on buybacks, dividends and squeezing more bbl out of existing assets instead of taking on large expansion projects. 

Last month, Canadian Natural's rivals, Suncor Energy Inc, Cenovus Energy Inc and Imperial Oil Ltd , had raised their capital expenditure and output expectations for 2022.

Canadian Natural, the country's biggest oil and natural gas producer expects to spend C$4.35 B ($3.44 B) in 2022, higher than its 2021 estimate of C$3.48 B.

The Calgary, Alberta-based producer also said it expects total production to be between 1.27 MM and 1.32 MM barrels of oil equivalent per day (boepd) this year, compared with the 1.19 MM to 1.26 MM boepd it had estimated for 2021.

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