Imperial Oil Projects Up To 460,000 Barrels Per Day Of Production In 2026

Imperial Oil Limited (AMEX:IMO) on Monday released its corporate guidance for 2026. The company emphasized a strategy focused on maximizing the value of existing assets, advancing high-value growth opportunities, and delivering strong shareholder returns. The company sees capital and exploration expenditures of 2.0–2.2 billion Canadian dollars, targeting projects that enhance long-term profitability. Also Read: IEA Slashes 2026 Oil Glut Forecast In Rare Warning As Demand Surges, Sanctions Hit Supply And Global Markets Brace For A Massive Shakeup Upstream Projections In Upstream, the company expects the spending to support secondary bitumen recovery at Kearl, high-value infill drilling and Mahihkan SA-SAGD at Cold Lake, and mining developments at Kearl and Syncrude. The company anticipates production of 441,000-460,000 gross oil-equivalent barrels per day in 2026. This is expected to be driven by reliability improvements and ongoing growth at Kearl and Cold Lake, targeting 300,000 and 165,000 barrels per day, respectively. Also, turnarounds are scheduled at Cold Lake, Syncrude, and Kearl, with planned work at Kearl’s K1 plant extending the turnaround interval from two to four years. Downstream Forecasts The company projects throughput of 395,000-405,000 barrels per day, with capacity utilization of 91%–93% in 2026. The company sees planned turnarounds, including Strathcona and Sarnia, with Strathcona focusing on the crude unit after achieving its longest-ever 10-year run. Imperial aims to enhance downstream profitability by leveraging its nationwide logistics network and strong brand loyalty programs to deliver products, including renewable diesel, to high-value markets. Management Commentary John Whelan, chairman, president, and chief executive officer, said, “Our 2026 plan builds on Imperial’s strong foundation and positions the company to structurally increase cash flow, by progressing towards volume and unit cash cost targets at Kearl and Cold Lake.” Recent Events In October, the company reported third-quarter Upstream production of 462,000 gross oil-equivalent barrels per day, marking the highest quarterly output in over 30 years. Meanwhile, Downstream throughput averaged 425,000 barrels per day, achieving 98% refinery capacity utilization in the quarter. Imperial Oil witnessed capital and exploration expenditures of about 505 million Canadian dollars in the quarter and 1.376 billion Canadian dollars in the nine months ending September 30, 2025. IMO Price Action: Imperial Oil shares were down 0.19% at $89.70 during premarket trading on Tuesday, according to Benzinga Pro data. Read Next: Exxon Is Slashing Low-Carbon Spending — And Quietly Betting On A Fossil-Fuel Supercycle Photo by T. Schneider via Shutterstock