Husky Energy is cutting spending by $1 billion this year

Husky Energy Inc. is cutting spending this year by $1 billion in the wake of the downturn in the global energy market.

The Calgary-based energy company says it’s reducing its capital spending program for this year by $900 million.

Husky says it will also find another $100 million in cost-saving measures.

The company expects its capital investments to total between $2.3 billion and $2.5 billion this year, down from its earlier plan for between $3.2 billion and $3.4 billion.

It says investment in resource plays and conventional heavy oil projects in Western Canada has been halted, with a focus on optimizing existing production and lowering costs.

Husky has also suspended drilling of sustaining pads at all thermal operations.

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