Oil producer Whitecap Resources Inc. says it is planning for "involuntary shut-ins" of production as North American crude storage levels threaten to exceed capacity and commodity prices remain at low levels. It expects U.S. production shut-ins of 1.5 million to three million bpd could occur as supply exceeds demand stalled by actions taken to limit the spread of the COVID-19 pandemic. Whitecap reported Wednesday a $2.1-billion net loss for the quarter ended March 31 thanks to a $2.9-billion non-cash writedown in the value of its assets due to low oil prices. Spending cutsBenchmark U.S. West Texas Intermediate crude oil prices have plunged by 75 per cent since the beginning of 2020. Analysts counted Whitecap's first quarter production and cash flow of $132 million (versus $161 million in the year-earlier period) as slightly beating or meeting their expectations.

Source: CBC News April 30, 2020 17:17 UTC