That’s saved several tens of millions of dollars for us. Now we’re on this cadence of one turnaround per year, but we’re looking at how we can do that more efficiently and at lower cost. And our guidance for this year for essentially the same scope as last year has us doing that work in a shorter period of time at a lower cost. So that’s another example. But the cost structure kind of leverages initiatives around every part of our business, our contracting strategy, our maintenance strategy, our energy usage, all these things together is what’s driving these improvements. One thing that differentiates Cold Lake from Kearl is the nature of that operation is very different. It’s very steam intensive and consequently very dependent on fuel gas.
And so that’s a key driver in its cost structure. But beyond that, all the other things like I just talked about at Kearl with contracting strategy, maintenance, energy usage, we’re continuing to look at ways to improve those as well. And then with Grand Rapids starting up, as I mentioned, that’ll take about a dollar per barrel out of the cost structure for Cold Lake overall. So a lot of really important initiatives there
Nolan Akins: Thanks for the color. On the second question I’ll ask here is capital builds. How are you expecting working capital builds on the leases to impact cash balances to balance here, appreciating that commodity prices are unpredictable.
Brad Corson: Maybe I’ll ask Dan to talk about that.
Dan Lyons: Yes. Look, I mean, working capital bounces around. And as you pointed out, it’s super hard to really predict quarter-to-quarter. We had a $450 million hit this quarter, driven by inventory and some tax payables. So I would say going forward, we kind of forecast zero, but the inventory piece of the working capital build should reverse itself out. So it’s really hard to say what it will do over the next few quarters. But we don’t expect continued significant working capital. It’s noise that bounces around. So we took this quarter, we wouldn’t expect that to be repeated. And if prior trends are predictive of the future, we’ll probably see some unwind of some of that, especially out of inventory.
Nolan Akins: That’s a good answer. I’ll turn it back
Dan Lyons: Thank you.
Operator: Thank you. This does conclude today’s question-and-answer session. I’d now like to turn the call back to Peter Shaw, Vice President of Investor Relations, for closing remarks.
Peter Shaw: Thank you. On behalf of the management team, I would like to thank everyone for joining us this morning. As always, if there are further questions, please don’t hesitate to reach out to anybody on the IR team, and we’d be happy to answer your questions. With that, thank you very much, and enjoy the rest of your day.
Operator: This does conclude today’s call. Thank you for your participation. You may now disconnect.
