May 30 (UPI) -- Canadian oil producer Husky Energy said it expects to increase profitability and production under a five-year plan that shows resiliency to lower oil prices.
The company said it aims to increase overall production from around 325,000 barrels of oil equivalent per day in 2017 to about 395,000 barrels of oil equivalent per day by 2021 though operations that range from oil to offshore natural gas. Operating costs, meanwhile, are down to about $9 per barrel of oil equivalent and its inventory can break even so long as crude oil prices hold above $35 per barrel.
"We have transformed Husky to grow profitably in this new, lower commodity price era," CEO Rob Peabody said in a statement.
The Canadian energy sector as a whole was hobbled by the low price for crude last year. The country is mostly landlocked as an energy exporter and relies almost exclusively on the United States as a destination for crude oil.
Fourth quarter production for Husky was down more than 8 percent year-over-year. Peabody said his company aims to do more with less under the five-year plan, cutting its capital spending plans by about $74 million, but stimulating production steadily.
The five-year plan follows the announcement of the development plans for the White Rose facility off the eastern coast of Canada. The company said first oil production is expected in 2022 and production should peak at 75,000 barrels of oil per day by 2025.
The company said it aims to build on legacy operations by integrating its production and transportation efforts with the U.S. market, while aligning with broader Canadian efforts to diversify the energy economy through expanded links to the Asian market.