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Canada's NEB Forecasts 75% Rise In Crude Oil Output By 2035

Canadian oil production will rise by nearly 75 percent to 5.8 million barrels per day by 2035, the country’s National Energy Board (NEB) said in a report on Thursday, assuming the infrastructure is built to transport crude to export markets. The NEB, Canada’s energy regulator, said the discount on Canadian crude versus the West Texas Intermediate benchmark will likely remain volatile if extra takeaway capacity is not built, potentially affecting production growth. Congested pipelines and booming production mean Canadian crude tends to get bottlenecked in Alberta, pushing prices lower. Western Canada Select, the benchmark heavy crude blend, traded as low as $41.50 per barrel below WTI earlier this month. Throughout 2011 and 2012 the WCS price traded on average nearly $19 per barrel below the WTI. “A key assumption in this analysis is that there will be sufficient infrastructure to deliver […]

Posted On : Published By : Tom Whipple
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Canada’s NEB Forecasts 75% Rise In Crude Oil Output By 2035

Canadian oil production will rise by nearly 75 percent to 5.8 million barrels per day by 2035, the country’s National Energy Board (NEB) said in a report on Thursday, assuming the infrastructure is built to transport crude to export markets. The NEB, Canada’s energy regulator, said the discount on Canadian crude versus the West Texas Intermediate benchmark will likely remain volatile if extra takeaway capacity is not built, potentially affecting production growth. Congested pipelines and booming production mean Canadian crude tends to get bottlenecked in Alberta, pushing prices lower. Western Canada Select, the benchmark heavy crude blend, traded as low as $41.50 per barrel below WTI earlier this month. Throughout 2011 and 2012 the WCS price traded on average nearly $19 per barrel below the WTI. “A key assumption in this analysis is that there will be sufficient infrastructure to deliver […]

Posted On : Published By : Tom Whipple
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Suncor expects 'strong year' for oil production

Suncor Energy Chief Executive Officer Steve Williams said his company is set for a strong year in 2014 in terms of oil sands production. “We’re set for a strong year of continued production growth,” he said in a statement Wednesday. Suncor said it would spend $7.8 billion next year, about half of which would go toward projects like its Fort Hills oil sands project in northern Alberta. The company said it expects oil sands production to increase next year, which would offset the production loss from the sale of some of its assets in 2013. Exploration and production from its Canadian assets should result in the total production next year of at least 53,000 barrels of oil equivalent per day. “We will be diligent in pursuing only those projects we believe will deliver long-term shareholder value,” Williams said. “This approach applies not only […]

Posted On : Published By : Tom Whipple
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Suncor expects ‘strong year’ for oil production

Suncor Energy Chief Executive Officer Steve Williams said his company is set for a strong year in 2014 in terms of oil sands production. “We’re set for a strong year of continued production growth,” he said in a statement Wednesday. Suncor said it would spend $7.8 billion next year, about half of which would go toward projects like its Fort Hills oil sands project in northern Alberta. The company said it expects oil sands production to increase next year, which would offset the production loss from the sale of some of its assets in 2013. Exploration and production from its Canadian assets should result in the total production next year of at least 53,000 barrels of oil equivalent per day. “We will be diligent in pursuing only those projects we believe will deliver long-term shareholder value,” Williams said. “This approach applies not only […]

Posted On : Published By : Tom Whipple
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Working Around Keystone XL, Suncor Energy Steps Up Oil Production in Canada

Suncor Energy, Canada’s top petroleum producer, announced on Thursday that it would expand its oil production in 2014 by 10 percent in another sign that the Obama administration’s delay in approving the Keystone XL pipeline extension is not holding back growth in the western Canadian oil sands fields. “We’re set for a strong year of continued production,” Suncor’s chief executive, Steven W. Williams, said. The company announced a capital spending program of $7.45 billion for 2014, $477 million more than it had forecast earlier this year. Suncor, which is based in Calgary, produces oil and gas around Canada, and has operations in North Africa and the North Sea. But its oil sands operations are the main driver for the company. In the most recent quarter, its oil sands output rose 16 percent from the year before for a record of 396,000 barrels a day, nearly 20 percent of the […]

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Canada woos EU with oil study

LONDON, Nov. 20 (UPI) — Canadian Natural Resources Minister Joe Oliver said from London energy standards in the European Union discriminate against Canadian crude oil grades. “Canada supports the EU Commission’s objective of reducing greenhouse gas emissions for transportation fuels but believes it must be based on science and facts,” Oliver said Tuesday from London. “Unfortunately, the Fuel Quality Directive, as currently drafted, is unscientific and discriminatory … harm[s] the European refinery industry and [does] not achieve its environmental objective.” The European directive ranks conventional crude oil, bitumen, known also as oil sands, and shale oil according to the amount of greenhouse gas emissions. The values are used to determine which grade contributes how much to total emissions. The European Union aims to cut its emissions from fuel by 6 percent of their 2010 levels by 2020. The Canadian government last week published a report saying oil sands in […]

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China National Offshore Oil Corp. plans Canadian LNG hub

HONG KONG, Nov. 13 (UPI) — China National Offshore Oil Corp. Chief Executive Officer Li Fanrong said his company is considering a liquefied natural gas export hub in British Columbia. “LNG export is the most attractive option for maximizing the value of our Canadian shale gas business,” Li said in a statement Tuesday. CNOOC’s Canadian subsidiary, Nexen Energy, reached an agreement with the provincial government of British Columbia to examine the potential for a liquefied natural gas export terminal near Prince Rupert, a port city on British Columbia’s northern coast. The agreement gives Nexen and its joint venture partners, Japan’s Inpex Corp. and JGC Corp., exclusive rights to pursue long-term access to the land needed for the LNG terminal. “With robust financial capacity, a track record of efficient, innovative and responsible development and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity,” […]

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Redford sees rail problems entering the Keystone XL debate

Some US officials raised greenhouse gas concerns as increasing amounts of Alberta’s heavy crude oil move by rail while approval of the Keystone XL pipeline’s cross-border permit continues to be delayed, Premier Allison Redford said after concluding her fifth Washington visit to lobby for the project. “A lot of that product is being transported by rail at the moment, and that is something that is receiving quite a bit of attention in the United States, partly because we know that transportation by rail leads to higher greenhouse gas emissions than a pipeline would,” The Financial Post reported Redford as saying. The premier met with officials at the US Department of State , which is expected to conclude its environmental impact statement early in 2014 on TransCanada Corp.’s revised application for a cross-border permit, as well as US Senate and House leaders. The proposed 1,179-mile pipeline would move diluted bitumen […]

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Cnooc Wins Right to Build LNG Export Plant at Canadian Site

CALGARY—The Canadian subsidiary of Chinese state-owned energy giant Cnooc Ltd. 0883.HK -2.62% CNOOC Ltd. Hong Kong $ 14.86 -0.40 -2.62% Nov. 13, 2013 4:01 pm Volume : 62.98M P/E Ratio 8.09 Market Cap $692.04 Billion Dividend Yield 3.36% Rev. per Employee $33,147,300 11/12/13 Cnooc Wins Right to Build LNG … 10/25/13 Chinese Energy Deals Focus on … 10/22/13 Chinese Hunt for Oil in Brazil… More quote details and news » 0883.HK in Your Value Your Change Short position has been awarded exclusive rights to proceed with a proposed terminal to export liquefied natural gas from Canada’s Pacific coast, local government and company officials said Tuesday. Known as Aurora LNG, the project is one of nearly a dozen proposals for plants to export surplus natural gas from British Columbia, none of which have been formally approved yet by their corporate sponsors. In addition to Calgary-based Nexen Inc., a wholly owned […]

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How North America’s Oil Boom Is Hurting Farmers In Western Canada

“We are not getting the rail capacity we need to move the product,” Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents major grain companies, said. The 81 million-tonne harvest and increased rail traffic from the energy sector has created a backup of grain sitting in elevators waiting to be transported to the market. The best way to transport the crude oil is by rail since there is no significant pipeline network in place, John Felmy, chief economist at the American Petroleum Institute, told International Business Times. “So, I think [railroading] will fit in well in terms of all of our shipping aspirations,” he said. “Definitely, increased shipments of oil by rail are having an impact,” Blair Rutter, executive director of the Western Canadian Wheat Growers Association, which represents farmers, said. “The fact that we don’t have [enough] pipelines is hurting the Canadian farmer in getting […]

Posted On : Published By : Tom Whipple