| CALGARY, Alberta
CALGARY, Alberta Oct 5 Encana Corp
said on Wednesday it has made $50 million in cost savings in
2016, continuing a trend of Canadian oil and gas producers
squeezing spending in response to the prolonged downturn in
global crude prices.
Calgary-based Encana updated its 2016 guidance to reflect
savings in production and mineral taxes, and operating,
processing and transportation costs. The company now expects to
spend S1.1 million-$1.2 million this year, it said in a
statement ahead of its investor day in New York.
Shares in Encana were last up 3 percent on the Toronto Stock
Exchange at C$14.31.
The update from Encana comes two weeks after fellow Canadian
crude producer Imperial Oil said its 2016 sustaining
capital had dropped 25 percent to C$900 million ($681.41
million) from a year earlier.
Both oil sands and conventional oil producers in Canada have
been forced to cut costs aggressively in response to the
two-year crude rout, in which prices have more than halved.
While much of savings came from squeezing suppliers into
lowering their rates, a number of the major Canadian oil
producers including Suncor Energy and Cenovus Energy
have said they think a third of those savings will be
sustainable even when oil prices recover.
($1 = 1.3208 Canadian dollars)
(Reporting by Nia Williams; Editing by Andrew Hay)