Canada's Suncor Energy on Tuesday forecast higher capital expenditure for 2023 as the energy company counters high inflation, rising interest rates and geopolitical unrest.
Rising costs and shortages of labor and materials have troubled the oil and gas industry this year, and many suspect the situation may further worsen in 2023.
Suncor had already raised its full-year 2022 capital expenditure forecast once in August, citing inflationary pressures and increased spending on safety improvement.
The company said higher capital expenditure also includes costs related to its acquisition of Canadian miner Teck Resources' stake in the Fort Hills oil sands project in Alberta, which is expected to close in 2023.
Suncor estimates 2023 spending to be between C$5.4-billion ($4.02-billion) and C$5.8-billion, higher than its 2022 forecast of C$4.9-billion to C$5.2 billion.
The Calgary, Alberta-based firm expects total 2023 production to be between 740 000 and 770 000 barrels of oil equivalent per day (boepd), compared with 740 000 to 760 000 boepd a year earlier.