Suncor committed to Hebron despite oil collapse

Suncor Energy announced Tuesday lower crude oil prices have prompted the company to make significant spending cuts for its 2015 budget, as well as cut 1,000 jobs, but the company stated it will remain committed to the Hebron project.

• Suncor to cut 1,000 jobs in response to low oil prices

In a statement released Tuesday, Suncor said the company will be deferring some projects, including the White Rose Extension, as it works toward cutting capital spending by $1-billion.

The company will also implement an overall hiring freeze for non-critical roles, and the coming job cuts would be focused in the contract workforce.

Suncor said in its release it will continue moving forward on Hebron despite the low price of oil, calling the project a "long-term growth" project expected to bring strong returns once it comes online in late 2017.

Steve Williams, Suncor's president and CEO, said in the release the company was well-positioned for the downturn in oil prices, adding that cost management was a focus before the oil price dropped.

"Today's spending reductions are consistent with our commitment to spend within our means and maintain a strong balance sheet. We will monitor the pricing environment and take further action as required," Williams said in the release.