Husky plans on $40-per-barrel oil

Canada’s Husky Energy announced plans Tuesday to sell part of its midstream business and cut capital spending in its Alberta operations, citing the oil price slump.

The company’s investment shrunk from $5.1 billion in 2014 to $3.1 billion in 2015, with a planned $2.9 billion–3.1 billion to be spent in 2016.

Describing the global supply glut as oil’s “uncharted territory,” company CEO Asim Ghosh said in a Tuesday address that the company would adjust its break-even oil price to $40 per barrel of West Texas Intermediate in next year’s plans.

Ghosh also said the old rules of <a href=’https://theenergyyear.com/companies-institutions/opec/’>OPEC calling the shots were no longer valid, referring to the cartel’s December 4 meeting in Vienna that did not yield an output cap.

Husky Energy will sell pipelines and oil tanks in the Lloydmister area of Canada to pay its debt, a move falling in line with a late-October announcement that it would sell its non-core assets. According to Ghosh, Husky may also sell royalty assets that return 2,000 barrels of oil equivalent a day.

For more news and features about Canada, click here.