S&P/TSX 60 component
|Industry||Oil and gas|
|Founded||1938 as Husky Refining Company|
|Headquarters||Calgary, Alberta, Canada|
|Asim Ghosh, President & CEO, Li Ka-Shing|
|Products||Oil, natural gas, asphalt, associated products ,|
|Revenue||$22.4 billion, net of royalties (2015)|
|Owner||CK Hutchison Holdings (40.2%)|
Number of employees
Husky Energy Inc. is one of Canada’s largest integrated energy companies, headquartered in Calgary, Alberta. Its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE. The Company operates in Western and Atlantic Canada, the United States and the Asia Pacific Region, with Upstream and Downstream business segments. Husky Energy is controlled by Hong Kong billionaire Li Ka-Shing who owns a majority share of approximately 70% according to Bloomberg and Financial Post data.
Husky's foundation is in Heavy Oil and Western Canada, where it has conventional oil and natural gas assets, significant heavy oil production and downstream operations, including refineries, upgrading facilities and pipelines. The Company's three growth pillars are in the Asia Pacific Region, the Oil Sands and the Atlantic Region.
In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea achieved first production in 2014. The Company is advancing the liquids-rich BD field offshore Indonesia, along with three additional shallow water fields.
Husky also has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project achieved first production in early 2015.
In the Atlantic Region, off Canada's East Coast, the Company holds interests in 20 exploration licenses and producing properties at Terra Nova and White Rose. In the United States, the company owns a refinery in Lima, Ohio and holds a 50 percent ownership interest with BP in the BP-Husky Toledo Refinery in Oregon, Ohio. The company employs approximately 5,500 people (as of 2015), has approximately $33.1 billion in assets and produced an average of 346,000 barrels of oil equivalent per day in 2015, making it one of Canada's largest energy companies.
Assets and holdings
At 2015 year-end, Husky Energy had total proved reserves before royalties of 1.3 billion boe and probable reserves of 1.6 billion boe. In 2015 its reserves replacement ratio was 166 percent (136 percent including economic factors), reflecting new additions from heavy oil thermal projects, the Sunrise Energy Project, the Liwan Gas Project and the Company's natural gas fields offshore Indonesia. It owns approximately 490 retail stations in Canada.
Husky is the operator of the White Rose field and a partner in the Terra Nova project in the Jeanne d'Arc Basin offshore Newfoundland. Exploration work is underway at the Bay du Nord discovery area in the Flemish Pass, with partner Statoil.
The Company also owns a 40 percent interest in the Wenchang project offshore China, located near the mouth of the Pearl River. The remaining 60 percent of the project is owned by the Chinese National Offshore Oil Corporation (CNOOC). Husky is advancing the liquids-rich BD field offshore Indonesia, along with three additional shallow water fields.
In terms of refined products facilities, Husky owns and operates the Lloydminster Heavy Oil Upgrader in Lloydminster, Saskatchewan, the Asphalt Refinery in Lloydminster, Alberta, the Prince George Refinery in Prince George, British Columbia, the Lima Refinery in Lima, Ohio and is a 50 percent owner with BP of a refinery in Toledo, Ohio. Husky also operates the Husky Lloydminster Ethanol Plant and the Minnedosa Ethanol Plant.
A substantial portion of Husky's property and operations base has come from its acquisition of Renaissance Energy. In 2003, it also purchased the Canadian unit of the American-based Marathon Oil Corporation.
Now a publicly traded Canadian company with global interests, Husky Energy was originally founded in 1938 in Cody, Wyoming, in the United States, as the Husky Refining Company. Its primary founder was Glenn Nielsen. The first refinery was built in Cody, with a second constructed later in Riverton, Wyoming. In 1946, the Company relocated to Canada, with the Riverton refinery moved to Lloydminster, Alberta to take advantage of the expanding asphalt and heavy oil opportunities in the area. A wholly owned subsidiary, Husky Oil and Refining Ltd., was created and headquartered in Calgary, Alberta, Canada. The Cody refinery continued operations well into the 1970s, producing primarily asphalt. In the late 1980s and early 1990s, there were periodic rumors floating around Cody that the refinery would be reopened by a variety of different companies. One of the more persistent rumors was the impending purchase and reactivation of the refinery by Flying J. This never happened, however, and the entire refinery was finally razed in the late 1990s.
In 1998 Husky purchased Mohawk Oil, the largest independent chain of filling stations in Western Canada. Mohawk continues as a banner of filling stations within the Husky company.
Husky Energy's operations are divided into two business segments: Upstream and Downstream.
The Upstream division focuses on oil and gas exploration and extraction. In addition to its existing producing assets and opportunities in Heavy Oil and Western Canada, the company has identified three pillars for growth: the Asia Pacific Region, the Oil Sands and the Atlantic Region.
Its Heavy Oil business include seven thermal developments in Saskatchewan, with three additional projects anticipated to be online by the end of 2016.
The Company's transition of its Western Canada portfolio includes a focus on resource plays.
In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea began production in 2014. Husky is advancing the liquids-rich BD field offshore Indonesia, along with three additional shallow water fields.
Husky has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project achieved first production in early 2015 and supports online applicants.
Husky is using Steam Assisted Gravity Drainage technology at Sunrise, where bitumen is heated with steam to reduce its viscosity. When the liquid becomes more fluid, it is pumped to the surface and back to the central facility.
The White Rose field (located offshore Newfoundland in the Jeanne d'Arc Basin) includes two production wells at South White Rose that came online in 2015. Exploration work is underway at the Bay du Nord discovery area in the Flemish Pass, with partner Statoil.
Husky has managed the terminal operations for Western Canada Select (WCS)—one of North America's largest heavy crude oil streams— since it came on stream in 2004.
Husky Lloydminster Upgrader
Husky Lloydminster Refinery
Minnedosa Ethanol Plant
Husky's Ethanol Plant in Minnedosa, Manitoba has been producing ethanol to be blended into gasoline since 1981. In 2007 it was expanded and produces about 130 million litres of ethanol per year.
Lloydminster Ethanol Plant
The Husky Lloydminster Ethanol Plant came online in 2006 and produces 130 million litres of ethanol per year. In Canada ethanol is blended into gasoline. Feedstock for the plant is mainly non-food feed-grade wheat purchased locally. The plant can also produce Corn ethanol.
Prince George Refinery
Husky owns and operates the Prince George Refinery in Prince George, British Columbia. The refinery provides unleaded gasoline, seasonal diesel fuels, mixed propane and butane, and heavy fuel oil. The refinery's capacity is 12,000 bpd.
Like a number of other Midwest refiners, Husky was revamping its Lima, Ohio refinery with a coker capable of processing Western Canadian Select, (WCS) a heavier but less expensive crude oil. Since 2012 "Lima has run over 60,000 bpd of Canadian crude, but only about 3,000 bpd of that would be particularly heavy with an API gravity below 30." In early January 2015 an explosion destroyed the refinery's 26,000-bpd isocracker unit. Later in January Husky announced that, given the low price of oil, it would postpone its USD$300 million crude oil flexibility project. The project will process up to 40,000 bpd of WCS. Work is expected to begin on the first stage of the crude oil flexibility project during a planned maintenance turnaround in the first quarter of 2016.
BP-Husky Toledo Refinery
Husky and BP arranged a Joint Venture (JV) in 2008 in order to develop and process Alberta bitumen through which Husky acquired a 50 percent share in the 155,000-bpd BP-Husky Toledo Refinery in Oregon, Ohio and BP acquired a 50 percent share of the Husky-operated Sunrise field in Alberta. This refinery has been upgraded with a coker and is processing bitumen from Sunrise.
In December 2009, Husky Energy announced that it has entered into an agreement with Suncor Energy Inc. and Suncor Energy Products Inc. to purchase 98 retail outlets in the Ontario market. Husky acquired 68 stations that were branded Sunoco and 30 stations that were branded Petro-Canada. The Company operates a total of about 490 retail stations in Canada.
Current members of the board of directors of Husky Energy are: Victor Li, Canning Fok, Frank Sixt, Asim Ghosh, Stephen Bradley, Martin Glynn, Poh Chan Koh, Eva Kwok, Stanley Kwok, Frederick Ma, George Magnus, Neil McGee, Colin Russel, Wayne Shaw and William Shurniak.
Tommy Douglas served as a director of Husky Oil after his retirement from politics.
The current Chief Executive Officer and President of Husky is Asim Ghosh. Ghosh assumed the role of CEO and President in June 2010, taking over the position from John C.S. Lau, who had served as the CEO since 1993.
- Husky 2010 Annual Report. , accessed July 22, 2011
- "2015 Financial Statements". http://www.huskyenergy.com/downloads/investorrelations/2016/FinancialStatements2015.pdf. External link in
- "2015 Annual Information Form". http://www.huskyenergy.com/downloads/investorrelations/2016/AnnualInfoForm-2015.pdf. External link in
- Rebecca Penty (November 1, 2012). "Husky Profit Rises on Refining Margin as Production Falls". Bloomberg.
- Financial Post: "Husky needs to avoid government's teeth"
- McGill Canadian Corporate Reports: "Company Detail Husky Oil Ltd."
- "Husky Energy Brings Second Liwan Gas Field Onto Production". Husky Energy. Retrieved 24 February 2015.
- "Husky Energy Begins Oil Production at the Sunrise Energy Project". Husky Energy. Retrieved 11 March 2015.
- "2014 Annual Information Form". http://www.huskyenergy.com/downloads/investorrelations/2015/AnnualInfoForm2014.pdf. External link in
- "Husky Energy Reports Fourth Quarter Results". Husky Energy. Retrieved 26 February 2016.
- "Husky Energy Reports Fourth Quarter Results". Husky Energy. Retrieved 26 February 2016.
- Jarrett Renshaw (January 28, 2015), Husky Energy shelves fall shutdown of Lima, Ohio, refinery, New York: Reuters, retrieved July 21, 2015
- Downstream Operations, nd, retrieved July 21, 2015
- "BP-Husky Toledo Refinery, United States of America", Hydrocarbons Technology
- Husky Energy Announces Expansion of Retail Network
- Husky Energy Corporate Information, "Husky Energy Appoints New President and Chief Executive Officer", May 21, 2010, accessed July 19, 2011.