RE:It has to ultimately make sense. @MyHoneyPot
Roughly 35 million barrels a day is now selling below its replacement cost (ie. operating costs plus sustaining capital). So the 4-5% annual depletion rate is kicking in as you would suspect.
Statements by the CFO suggest that Fort Hills will be the next lamb to be sacrificed if the market does not correct. I am sure partner Teck is getting very nervous now that their last cash cow (copper) is tipping over. I think deep down, Suncor is only doing this project to keep the partners happy but now that the partners are in trouble, this is an easy one to postpone/shelve what have you.
It's a bit of a shame management at COS have been so quiet. They must be in the Caymans for the winter with the BOD. Obviously, they feel their 36% gives them no voice. I am sure there must be 20% fat at the site that can be tossed overboard and plenty of sustaining capital that can be postponed. Disclosure- no position but keeping an eye on this one. I moved into Husky for a bit of diversity after taking a bath here.