Canadian Natural Resources reported a decline in net production during the second quarter, pointing to planned transitions at the company as the reason.

The producer reported 1.05 million barrels of oil equivalent production for the second quarter, an increase of 15 percent from the same period last year, but 6.5 percent lower than first quarter 2018.

Most of the company's production is in oil and total output was 7 percent lower than during the first quarter, but 25 percent higher year-over-year. The company attributed the decline to upgrades at its thermal processing units and other transitory efforts.

"Our asset base is a key competitive advantage providing significant capital flexibility and as a result, to maximize value, we are shifting capital from primary heavy crude oil to light crude oil," Tim McKay, the company's president, said in a statement.

In terms of profits, the company's second quarter results were down by nearly 10 percent.

Thermal processing is used to add viscosity to heavier oil sands in Alberta. Lighter crude would be similar to the type of found in the Lower 48 U.S. states.

The company's production trends are in contrast to data from the provincial government in Alberta. In a financial update to Thursday, the government reported that crude oil production was more than existing pipelines could handle, forcing oil producers to turn to rail to make up for the difference.

The provincial government said crude oil exports by rail set an all-time record in May, surging 50 percent from last year.

More than 40 people died in Lac-Megantic, Quebec, in 2013 when a train carrying oil derailed and exploded.

"Despite the surge, crude by rail volumes remain quite modest in relation to Alberta's total production of nearly 3.4 million barrels per day," the provincial government reported.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Engineers use Tiki torches in study of soot, diesel filters
Notre Dame IN (SPX) Jul 30, 2018
Chemical engineers testing methods to improve efficiency of diesel engines while maintaining performance are getting help from a summer staple: Tiki torches. A team of engineers at the University of Notre Dame is using the backyard torches as part of an effort to mimic the soot oxidation process in a diesel engine - when soot in diesel exhaust collects in the walls of a particulate filter and has to be burned off - according to a study recently published in Catalysts. "This study is part of ... read more