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Highlights

  • $3.4 billion on capital projects
  • $3 billion on operational costs: services, materials and equipment, utilities and transportation
  • $801 million in employee salaries and benefits
  • $167,000 average compensation per employee
  • Contracts worth $72 million issued to Indigenous vendors

Objectives

Business Resilience

  • Maintain strong financial discipline, with a focus on generating free cash flow and returns, while investing in higher-margin growth opportunities.

Innovation and Advanced Technology

  • Identify, evaluate and invest in technology advancements to improve environmental and financial performance.

Contributing to the Economy

We make progressive investments to improve safety, reliability and our cost structure. Our financial priorities are to maintain the strength of the balance sheet, fund sustaining capital requirements and return value to our shareholders through a cash dividend. Through our stability and long- term profitability, we contribute to the economies of the communities where we operate, provide well-paid jobs, use local suppliers, support local not-for-profit groups and pay taxes and royalties.

Indigenous companies are part of our long-term success and a growing part of local supply chains. We’re finding new ways to work with Indigenous companies through our economic inclusion program. In 2019 we issued contracts to Indigenous companies worth $72 million, an increase from 2016 of about 65%.

In 2019 we spent $3.4 billion on capital projects in the areas where we operate and $3 billion to operate, which includes services, materials and equipment, utilities and transportation.

We directly employ about 4,800 people in Canada, the United States and the Asia Pacific region. These well-paid jobs further contribute to the economies of the communities where we operate.

Our key social pillars include:

  • Purchasing goods and services from local businesses, including Indigenous vendors.
  • Paying royalties and taxes to municipal, provincial, state and federal governments, which support a broad range of public services.
  • Contributing to community and not-for-profit organizations.

Business Resilience

Husky has important competitive advantages, including a strong balance sheet, an Integrated Corridor that includes sizeable downstream and midstream assets, and Offshore operations that include long-term gas contracts in the Asia Pacific region.

We incorporate carbon-related costs, based on current and emerging policies in the jurisdictions where we operate, to help us understand the resilience of our current and proposed assets to changes in carbon policy and regulation. We have set a target of reducing our Scope 1 emissions intensity by 25% by 2025, using our 2015 performance as a baseline.

Energy Use

Improving efficiency, particularly energy efficiency, is important to both our financial and environmental performance. We use fuel, electricity and steam in our operations and exclude all gases flared, vented or incinerated since the energy content is not used. In 2019 our total energy use declined by more than 10 million gigajoules from 2018, primarily due to reduced fuel use. This was largely due to the Alberta government-mandated production curtailment, which led to reduced production at the Sunrise Energy Project. Additionally, the sale of the Prince George Refinery, suspended operations at the Superior Refinery after a 2018 fire and the shutdown of the Lima Refinery to tie-in the crude oil flexibility project contributed to reduced fuel energy use.

Reducing steam-oil ratios means using less steam for the same oil production, which lowers our energy intensity and reduces both operating costs and air emissions intensity, including GHGs.

Since 2015, production at our Sunrise and Tucker operations has grown at a rate greater than our energy use, resulting in overall declines in both total energy use intensity and Scope 1 emission intensity.

Innovation and Advanced Technology

Our investments in innovation and technology, totaling about $38 million in 2019, target improved safety and environmental performance, lower costs and increased resource recovery.

While focusing on developing and implementing technology that offers the highest potential value for our business, we also collaborate with our peers. With our new membership in Canada’s Oil Sands Innovation Alliance (COSIA), we aim to maximize the benefit of our environmental work, along with that of other members, by cooperating to reduce GHG emissions, minimize water use and develop more efficient land reclamation.

We are a member of the Clean Resource Innovation Network (CRIN), which applies technology and innovation to making the oil and gas industry more effective, efficient and carbon competitive. We are also a member of the Petroleum Technology Alliance of Canada (PTAC), collaborating on the research and development of technology solutions for industry challenges such as environmental stewardship, operational efficiencies and cost reduction. And through the Sprint Robotics consortium we look at how to develop and apply robotics techniques to improve the quality and safety of our maintenance and inspections.

We draw on the knowledge and expertise of our employees in various ways, encouraging their ideas and increasing their knowledge and skills through training and hands-on experience. Our critical competency networks connect people across business units, exposing them to different technologies employed by colleagues and driving collaboration. These networks focus on innovation and best practices in areas such as air emissions, water management, reservoir recovery, geoscience integration and business analytics.

Our Innovation Gateway program builds on the expertise of our technical chiefs and other out-of-the-box thinkers, and leverages the knowledge of our technology partners, providing a coordinated approach that fosters innovation across the Company. It hosts targeted internal challenges to solve issues faced by colleagues, with results given wider exposure at the Technical Forum held for employees every other year. In 2019 the forum invited select innovative suppliers to showcase relevant technology and ideas. We also run external challenges that see technology companies propose solutions for environmental priorities, including a carbon capture and storage innovation challenge at the Globe 2020 conference.

Using technology to manage and analyze data is an important part of identifying opportunities for improvements. We have implemented a search feature in our data catalog that allows users to easily find what they need and understand what they’ve accessed. Our safety and regulatory reports and analysis automatically collect the most up-to-date numbers from our data services.

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