Suncor Energy (NYS: SU) has released its guidance for 2013, in which it announced that it will be looking to spend $7.3 billion in capital expenditures next year. Of that amount, $3.3 billion will be aimed at other growth projects on the East Coast of Canada, which should be strong moves for the company, but they'll also be away from its bread-and-butter area, the Canadian oil sands. By comparison, the company is projecting only $1.2 billion in capital expenditures for its oil sands projects. Why isn't Suncor isn't focusing more on developing these oil sands projects? Because there's no takeaway capacity. And until it can work out a deal with the midstream companies to arrange for the transport of more volume, there's no way to plan for how much expansion it can budget.
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The article Suncor's Growth Problem originally appeared on Fool.com.
Joel South and Taylor Muckerman have no positions in the stocks mentioned above. The Motley Fool owns shares of Kinder Morgan. Motley Fool newsletter services recommend Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.