Category: Canada

Suncor Energy Inc. (SU) and Valero Energy Corp. are poised to use only North American crude in eastern Canada by 2015, helping to displace overseas imports. Suncor’s Montreal refinery will reach that point in 2015 and Valero’s Quebec City plant by the end of this year, the companies said April 29. Imports to Quebec, Ontario and Atlantic provinces from outside North America dropped by more than 50 percent in November from a year earlier. Enbridge Inc. plans to start a pipeline late this year allowing oil to flow to Montreal from fields in North Dakota and Alberta , further reducing higher-priced supplies from Europe and Africa . U.S. crude production reached a 26-year high in April, increasing stockpiles in the U.S. to the highest since 1931, while Canadian output is forecast to rise 4.1 percent this year. A shift of oil to eastern Canada, coupled with future potential to […]

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Buckeye Partners may facilitate exports of Canadian crude to its BORCO terminal in the Bahamas from its Perth Amboy, New Jersey, terminal, where the company is rushing to make a new crude-by-rail unloading facility heavy-crude capable, CEO Clark Smith said Friday. "Customer demand has also accelerated the second phase of this rail project as we position the facility to handle heavier crude slates and facilitate exports of Canadian-sourced crude oil," Smith said on an earnings call. "Given this customer demand, we are adding certain equipment to fast track the completion of new infrastructure to handle the heavy crude oil slates." The "re-export" of Canadian crudes from US ports is an increasingly discussed topic as more heavy crude production from Western Canada moves on pipelines and tank cars to the East and Gulf coasts. For example, Texas-based Valero Energy has a license to re-export Canadian […]

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Ltd. ‘s crude-oil shipping business will likely see its revenue double to 10% of the rail’s overall total in the next two or three years, the company’s chief executive said. Hunter Harrison said demand from Western Canada’s oil producers to ship crude by rail to refineries is likely to increase as output rises. "In the next two or three years, it’ll probably go to 10% of the business," he said. "There’s a lot of opportunities." The risk of derailment and other safety issues associated with shipping crude led CP to consider getting entirely out of the business of shipping crude by rail about a year ago, he said. The company’s board discussed ending transporting oil and other hazardous material, such as chlorine and ammonia, through communities in the U.S. and Canada, he said. The board decided to continue moving the products as it believed it would do […]

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Ltd. ‘s crude-oil shipping business will likely see its revenue double to 10% of the rail’s overall total in the next two or three years, the company’s chief executive said. Hunter Harrison said demand from Western Canada’s oil producers to ship crude by rail to refineries is likely to increase as output rises. "In the next two or three years, it’ll probably go to 10% of the business," he said. "There’s a lot of opportunities." The risk of derailment and other safety issues associated with shipping crude led CP to consider getting entirely out of the business of shipping crude by rail about a year ago, he said. The company’s board discussed ending transporting oil and other hazardous material, such as chlorine and ammonia, through communities in the U.S. and Canada, he said. The board decided to continue moving the products as it believed it would do […]

Click here to view full article at online.wsj.com

From a plane landing in Vancouver, the city shimmers below. Skyscrapers sheathed in glass reflect water that lies on three sides of downtown. Forested mountains serve as a backdrop that has made it easy for politicians to brand Vancouver the world’s “ greenest city .” There is more to that reputation than just PR. Vancouver’s greenhouse gas (GHG) emissions are among the lowest of any urban center in North America. The city council has made bicycling infrastructure a priority. And in 2008, the government of British Columbia enacted a relatively steep carbon tax that has earned international praise for lowering the province’s per capita consumption of fossil fuels to well below Canada’s average. Making B.C. look even cleaner by comparison is its dirty neighbor. Right next door in Alberta are the Athabasca oil sands, a development vilified around the world as one of the most environmentally […]

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Suncor Energy Inc. (SU) , Canada’s largest oil producer by market value, said first-quarter profit rose helped by higher crude prices and shipments of North American crude to the Gulf and Atlantic coasts. was C$1.49 billion ($1.35 billion), or $1.01 a share, compared with C$1.1 billion, or 72 cents, a year earlier, the Calgary-based company said today in a statement. Chief Executive Officer Steve Williams has focused on boosting earnings by canceling less profitable projects including the Voyageur upgrader and stepping back from a production target of 1 million barrels a day by 2020. The company has protected itself from more volatile Canadian crude prices during the past year with its refineries, which benefit from lower commodity prices. “Our integrated model combined with improved market access allowed us to maximize the value of every barrel we produced,” Williams said in the release. Average production was the equivalent of 545,300 […]

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Canada will require that older rail cars used for carrying crude oil be phased out by May 2017, the government said on Wednesday, moving ahead of the United States to eliminate the cars in light of growing oil-by-rail traffic and a deadly accident last year. The move is a response to recommendations made by the Transportation Safety Board of Canada after a fiery derailment last July in Lac-Mégantic, Quebec, which killed 47 people. The ban was among a series of measures outlined by the government to improve the safety of transporting crude oil by rail, an increasingly common practice in North America, where a shortage of pipeline capacity has forced shippers to find alternatives. Canada’s faster time frame raises the possibility that the older cars will be diverted for use in the United States.

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The Canadian government said 2.7 million barrels of oil per day were exported in February, a modest increase year-on-year. The National Energy Board, the independent energy regulator in Canada, said 2.7 million bpd were exported in February, up 20,000 bpd year from the same time last year. For the first two months of 2014, Canadian oil exports were 1.5 percent higher than the same period in 2013. Nearly all of Canadian oil exports head to the United States. Canadian Prime Minister Stephen Harper has tried to add a layer of diversity to the export economy by courting Asian consumers. Last month, NEB said U.S. oil imports from Canada have increased from 16 percent of total U.S. imports in 2005 to 32 per cent in 2013. NEB’s latest set of data, published Tuesday, didn’t include export destinations. The Canadian Association of Petroleum Producers said crude oil output is expected to […]

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