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From where do you want your oil, TransCanada asks

Keystone XL planner TransCanada says project is fundamentally about the source of North American crude oil imports. Photo courtesy TransCanada CALGARY, Alberta, Nov. 5 (UPI) — The fundamental question over the Keystone XL debate is whether to use domestic oil or oil imported from Venezuela or the Middle East, TransCanada said. TransCanada asked the U.S. State Department to pause the review process for the Keystone XL pipeline while it waits for route decisions from Nebreaska’s government. The State Department refused the request . Mark Cooper , a spokesman for the company, said in an emailed statement TransCanada would continue to focus on building the pipeline. "The fundamental question remains: Do Americans want to continue to import millions of barrels of oil every day from the Middle East and Venezuela or do they want to get their oil from North Dakota and Canada through Keystone XL?" he said. "We believe […]

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Justin Trudeau stumps for low-carbon economy

Canadian Prime Minister Justin Trudeau stresses role of clean-energy jobs during introductions to the Canadian people. Photo by Heinz Ruckemann/UPI OTTAWA, Nov. 5 (UPI) — During challenging times, Canadian Prime Minister Justin Trudeau said the nation’s economy and job growth would revive on the back of cleaner energy. In a last-minute October surge, the Liberal Party in Canada emerged victorious in national elections, pushing the Conservative Party led by Stephen Harper into the opposition. As prime minister, Harper had tried to expand Canada’s energy reach outside of North America at the same time as lobbying in favor of new oil infrastructure, like the Keystone XL oil pipeline planned through the United States. "We [are] committed to fighting climate change and protecting our environment," he said in an open letter to the Canadian people. Canada’s economy relies heavily on the oil and natural gas sector. With much of its export […]

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TransCanada says it will build only one Energy East export terminal

A depot used to store pipes for Transcanada Corp’s planned Keystone XL oil pipeline is seen in Gascoyne, North Dakota November 14, 2014. TransCanada Corp scrapped plans to build a port in Quebec and said on Thursday it will have only one crude oil export terminal for its Energy East pipeline project. The move comes days after TransCanada asked the U.S. State Department to pause its review of the company’s long-delayed Keystone XL pipeline, a request that Washington turned down amid speculation President Barack Obama will ultimately reject the pipeline. The 1.1 million barrel-per-day Energy East project is intended to carry crude from Alberta across Canada to New Brunswick. Calgary-based TransCanada had originally planned to build two ports for shipping crude overseas by tanker – one at the pipeline terminus in Saint John, New Brunswick, and the other in Cacouna, Quebec. However, the company abandoned the Cacouna location in […]

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Enbridge Reports Loss as Charges, Pipeline Delay Take Toll

Enbridge Inc. reported a loss in the third quarter as one-time charges and a delay in startup of a pipeline to Eastern Canada dragged on earnings. Canada’s largest pipeline company reported net loss of C$609 million ($463 million), or 72 cents a share, compared with a loss of C$80 million, or 10 cents, a year earlier, according to a statement Thursday. Excluding one-time items, per-share profit missed by 3 cents the 50-cent average of 13 analysts’ estimates compiled by Bloomberg. Enbridge has been transferring assets to affiliates such as Enbridge Income Fund Holdings Inc. which contributed to C$351 million in costs in the quarter, along with C$654 million in one-time expenses related to changes in the value of derivatives. The delay of the reversal of Line 9, running from from southern Ontario to Quebec and initially expected to be in service in early 2015, and now will start deliveries […]

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Canadian Crude Still Flows to U.S. Despite Keystone Pipeline Delay

TransCanada Corp. TRP 0.92 % ’s decision to postpone the Keystone XL Pipeline won’t have much effect on the U.S. energy industry, experts say, largely because American refiners have found other ways to get crude oil from Canada. Oil imports from Canada set a new record in August, averaging 3.4 million barrels a day, according to data released Monday by the U.S. Energy Department. In fact, the U.S. has bought 64% more Canadian crude so far this year than it did in the same stretch of 2008, the year TransCanada first asked the U.S. government for permission to build the pipeline that would run from Alberta to Texas. That is an extra 1.2 million barrels of oil flowing into the U.S. from Canada every day, or 45% more crude than Keystone XL would have carried had it been constructed. On Monday, TransCanada asked the State Department, which reviews cross-border […]

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TransCanada Profit Falls 12%, But Results Top Expectations

TransCanada Corp. TRP 0.92 % on Tuesday reported a 12% decline in third-quarter earnings and said it hit the pause button on its controversial Keystone XL project to best assure its long-term success. Calgary, Alberta-based TransCanada late Monday said it had asked the U.S. State Department to suspend its permit application for Keystone XL while awaiting approval in Nebraska regarding the pipeline’s route through that state. “It’s our view that the State Department process should not continue in the current time in its current path if there’s going to be new information provided from a review in Nebraska,” TransCanada Chief Executive Russ Girling said during a conference call on Tuesday. The administration of President Barack Obama had been expected to reject the long-delayed project, which would carry 830,000 barrels of Canadian crude a day from landlocked Alberta to refineries on the U.S. Gulf Coast. The pipeline operator has to […]

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TransCanada Suspends Request for Permit to Build Keystone Pipeline

Photo A field near Bradshaw, Neb., through which the Keystone XL oil pipeline would run. TransCanada, the company seeking to build the 1,179-mile pipeline, wants to delay the project. Credit Nati Harnik/Associated Press WASHINGTON — The company seeking to build the Keystone XL oil pipeline asked the Obama administration on Monday to suspend its yearslong review of the project, potentially bringing an abrupt halt to a politically charged debate that had become part of a broader struggle over President Obama ’s environmental policies. It was not immediately clear whether the administration would grant the request, which was swiftly denounced by environmental activists as a bid to dodge a near-certain rejection of the pipeline. Allowing the delay would push off a decision until after the 2016 presidential election. The company’s request introduced a new element of uncertainty into the administration’s decision-making process, offering the potential to free Mr. Obama from […]

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Husky CEO Sees Canada-Only Carbon Tax as `Politically Suicidal’

Husky Energy Inc. Chief Executive Officer Asim Ghosh has a stern warning for Canadian political leaders considering changes to climate policy: don’t go it alone with a carbon tax. The Canadian oil producer controlled by Hong Kong billionaire Li Ka-Shing would support a tax if it’s applied broadly and at least includes the rest of North America, Ghosh said Friday on a conference call to discuss third-quarter earnings results. “It would be politically suicidal for us to do a mea culpa and hang our neck out in a way that disadvantages the industry here,” Ghosh said. “It has to be across the board and Canada as a jurisdiction or Alberta as a jurisdiction cannot be disadvantaged.” Alberta Premier Rachel Notley is planning changes to the government’s climate policy after already raising an existing carbon levy on the oil-producing province’s biggest emitters. Her New Democratic Party took power in May. […]

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Canadian Oil Sands calls Suncor bid undervalued, exploitive

Canadian Oil Sands says its weathering weak market, recommending shareholders reject unsolicited bid from rival Suncor. Photo courtesy of Canadian Oil Sands CALGARY, Alberta, Oct. 30 (UPI) — While posting a heavy loss for the quarter, Canadian Oil Sands Ltd. said it was advising against what it considers an undervalued bid by rival Suncor. Canadian Oil Sands, among the largest owners in the Syncrude joint venture production group in northern Alberta, said its operating expenses fell to around $5 per barrel, its net debt declined and capital expenses were down 62 percent to $63.5 million. The company said it’s achieved around $750 million in cost reductions during the first nine months of the year. "Canadian Oil Sands is demonstrating its ability to weather this period of low oil prices and even a modest improvement in oil prices will generate robust expansion of cash flow," President and Chief Executive Officer […]

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Canadian market forces Shell’s hand

Weak oil economy and the lack of pipeline infrastructure caused Royal Dutch Shell to shelve Canadian oil sands project. File photo by Brian Kersey/UPI CALGARY, Alberta, Oct. 28 (UPI) — An uncertain market and the lack of infrastructure needed to move Canadian oil to the global market means it’s time to scrap an Alberta oil project, Shell said. Royal Dutch Shell said it would no longer continue with the construction of its Carmon Creek project in Alberta, Canada, and take a $2 billion write down for the loss. Sanctioned in 2013, the company said it had moved in early 2015 to retool construction operations at the oil sands project, which was expected to yield 80,000 barrels of oil per day. Costs at a time of lingering market weakness and the lack of pipelines needed to move Canadian oil to the global market forced the company to reconsider its priorities. […]

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Canada Oil-Sands Giant Suncor Posts Loss

CALGARY, Alberta— Suncor Energy Inc., SU 2.89 % Canada’s largest crude-oil producer, reported a third-quarter net loss on a foreign exchange-related charge and slumping crude oil prices, setting a grim tone for the Canadian energy industry’s earnings. The Calgary company posted a net loss of 376 million Canadian dollars ($284.9 million), or 26 Canadian cents a share, in the three months ended Sept. 30. That compared with a net profit of C$919 million, or C$0.63 a share, in the same period last year. Suncor blamed a C$786 million foreign exchange loss linked to U.S. dollar denominated debt from a weakening of the Canadian currency. On an operating, or adjusted, basis that excludes one-time items, Suncor posted quarterly earnings of C$410 million, or C$0.28 a share, down nearly 69% from the C$1.31 billion, or C$0.89 a share, in the year-earlier period. That was above analysts’ average forecast of C$0.19 a […]

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Devon Cuts 200 Employees in Canada as Spending Slows in Oil Rout

Devon Energy Corp. cut 200 employees in Canada on Wednesday as it slows spending in the oil sands amid a crude price slump. The reduction of about 15 percent of the company’s employees in Canada brings the head count in the country to 1,050, Nadine Barber, a spokeswoman, said in an e-mail. “In the past two years, Devon has seen a significant reduction in capital spending in Canada as major projects, like Jackfish, have been completed,” Barber said, referring to the oil-sands drilling project it owns and operates in northern Alberta. “We expect capital to remain at lower-than-historic levels for the foreseeable future.” The Devon cuts add to about 36,000 oil and natural gas jobs lost in the country since the price crash began more than a year ago, according to an estimate this month from the Canadian Association of Petroleum Producers. Meg Energy Corp., another oil-sands developer, said […]

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Inflation Slows in Canada to 1% Amid Slack in Economy

Consumer price inflation in Canada slowed in September more than forecast, reflecting lower gasoline prices and an economy struggling with too much slack. The consumer price index was 1 percent above year-earlier levels, Statistics Canada said Friday from Ottawa. That’s down from 1.3 percent in the prior two months, and lower than the average of 1.1 percent this year. The Bank of Canada sees weak price gains as a sign the economy is running below capacity, and has been trying to drive inflation back up to its 2 percent target by keeping interest rates at historic lows. The central bank kept its key overnight rate at 0.5 percent this week after cutting it in January and July to cushion the damage from an oil-price shock. “Headline inflation remains very tame amid a generally soft economic backdrop and a steep drop in energy prices,” Benjamin Reitzes, senior economist at BMO […]

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Canadian Oil Companies Have Reasons to Love a Liberal Government

The Canadian energy industry’s second choice for prime minister is looking like the safest bet to revive its appeal to investors. While Liberal Justin Trudeau is supportive of environmental policies some energy producers may not like, his Monday victory puts into power a moderate government that stands between Conservatives who haven’t been able to advance key parts of the industry’s agenda and a more left-leaning party that’s seen as a strident foe. Trudeau is pledging to support new pipelines, help open markets for Canada’s oil and lure investment into the industry, while attempting to appease oil-sands opponents with more stringent curbs on pollution. His approach contrasts with the touting of projects by Stephen Harper, the outgoing leader whose repeated calls for approval of Keystone XL strained relations with U.S. President Barack Obama. “Trudeau has said nothing but positive things about Alberta’s energy industry,” said Stephen Carter, a Calgary-based non-partisan […]

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Canada Dollar Falls Most in 3 Month as Central Bank Cuts Outlook

The Canadian dollar fell the most in three months after the nation’s central bank left interest rates unchanged while cutting its economic growth forecasts, saying the fallout from lower prices for crude oil, one of Canada’s largest exports, will be felt for longer than projected. The currency weakened against most major peers as the Bank of Canada said falling energy investment will hobble the economy through next year. The currency weakness is a reversal from Tuesday when it got a boost from the Oct. 19 election that saw Justin Trudeau’s Liberal Party sweep into power on promises for deficit-funded stimulus spending. "Forecasts for growth are lower, and while not terribly pessimistic, it’s not terribly optimistic either," said Jack Spitz, the managing director for foreign exchange at National Bank of Canada. The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, […]

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Canada’s Trudeau under low-carbon pressure

Liberal leader Justin Trudeau called on to move Canada away from an economy that relies heavily on oil and natural gas. Photo by Heinz Ruckemann/UPI WASHINGTON, Oct. 21 (UPI) — The incoming Liberal government in Canada is called on to move away from an oil-based economy, the Natural Resources Defense Council said. The Liberal Party of Canada defeated the Conservatives in national elections Monday, pushing Prime Minister Stephen Harper ‘s party into the opposition and Justin Trudeau into the leadership position in Ottawa. Anthony Swift, director of the NRDC in Canada, said the incoming administration should move closer to a low-carbon economy for the sake of prosperity . "The new Liberal government in Ottawa has an unprecedented opportunity to move Canada away from the dirty fuels of the past and toward a clean energy future that will bring jobs, prosperity and security for all Canadians," he said in a […]

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Shell to drill in deep Canadian waters

Nova Scotia petroleum regulator gives Shell permit to start drilling in deep regional waters. File photo by James Jones Jr./Shutterstock HALIFAX, Nova Scotia, Oct. 21 (UPI) — An offshore petroleum regulator in Nova Scotia said Dutch supermajor Shell has consent to start an exploratory drilling program in the region’s deep waters. The Canada-Nova Scotia Offshore Petroleum Board said Shell Canada Ltd. has consent for operations about 150 miles off the provincial coast. "After an extensive regulatory review process, Shell Canada has demonstrated to the satisfaction of the CNSOPB that it will be taking all reasonable precautions to protect safety and the environment while carrying out the drilling program," Stuart Pinks, the board’s chief executive officer, said in a statement. Nova Scotia’s government estimates there may be up to 120 trillion cubic feet of natural gas and 8 billion barrels of oil offshore . Shell first acquired six-year exploration licenses […]

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Obama Keystone Veto Seen Helping Trudeau Reset U.S. Alliance

Canada’s new prime minister seen focusing on trade, climate A prompt rejection of TransCanada Corp.’s Keystone XL pipeline would make the job easier for Canada’s incoming Prime Minister Justin Trudeau as he seeks to reset the country’s relationship with the U.S., which he says was damaged by outgoing leader Stephen Harper. Trudeau, whose Liberal Party Monday night defeated Harper’s Conservatives with a surprise majority in Parliament, could use a quick U.S. denial of Keystone to focus discussions with U.S. President Barack Obama on issues such as trade and climate. There’s been speculation among Keystone watchers including Republican North Dakota Senator John Hoeven, a supporter of the $8-billion project, that Obama would reject the pipeline shortly after the Canadian election. “If it’s going to be rejected, which I think most people think it is, the sooner the better so it can be attributed to Harper,” said James Coleman, assistant professor […]

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Canada’s Trudeau gets nod for green agenda

Canadian Liberal leader and Prime Minister designate Justin Trudeau gets strong support from oil-rich Alberta province while environmental group questions his commitment to a low-carbon economy. Photo by Heinz Ruckemann/UPI EDMONTON, Alberta, Oct. 20 (UPI) — The premier in the oil-rich Canadian province of Alberta said she was looking forward to working with the next prime minister on environmental protection. In a last-minute surge, the Liberal Party in Canada emerged victorious, pushing the Conservative Party led by Prime Minister Stephen Harper into the opposition. Alberta Premier Rachel Notley welcomed the outcome of the Canadian federal election and the upcoming tenure of Prime Minister designate Justin Trudeau. "By growing our economy and protecting the environment, we can continue to make Alberta and Canada a great place to live, work and raise a family," Notley said in an emailed statement. Alberta announced plans in June to double a tax on carbon […]

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In Canada, Stunning Rout by Justin Trudeau and the Liberal Party

Photo Justin Trudeau of the Liberal Party and his wife before giving his victory speech in Montreal, Canada. Credit Jim Young/Reuters OTTAWA — The nine-year reign of Prime Minister Stephen Harper and his Conservative Party came to a sudden and stunning end on Monday night at the hands of Justin Trudeau , the young leader of the Liberal Party . Starting with a sweep of the Atlantic provinces, the Liberals capitalized on what many Canadians saw as Mr. Harper’s heavy-handed style, and the party went on to capture 184 of the 338 seats in the next House of Commons. The unexpected rout occurred 47 years after Mr. Trudeau’s father, Pierre Elliott Trudeau, first swept to power. Justin Trudeau, who will be 44 on Christmas Day, will become Canada’s second-youngest prime minister and the first to follow a parent into office. While the Liberal Party had emerged on top in […]

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S&P Downgrades Six Canadian Energy Issuers on Decline in Oil

Cenovus Energy Inc. and Husky Energy Inc. and four other Canadian energy companies have seen their ratings or outlooks lowered by Standard & Poor’s as slumping commodities prices put pressure on their businesses. Cenovus’s grade was cut to two levels above junk to BBB from BBB+ with a stable outlook and Husky saw the outlook on its BBB+ ranking lowered to negative from stable, the rater announced Friday. "The rating actions taken on both Cenovus and Husky reflect our view of the changes to each company’s business risk and financial risk profiles caused by the persistent weakness of crude oil and natural gas prices, and the resulting downward revision of our hydrocarbon price assumptions," S&P said in its ratings rationale. Cenovus spokesman Brett Harris said in an e-mail that "nothing has changed" for Cenovus despite the credit rating downgrade. "We are still a solid investment-grade company with one of […]

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Canadian Oil Sands Takeover `Ill Advised,’ Venator’s Osten Says

Suncor Energy Inc.’s offer to buy Canadian Oil Sands Ltd., the largest stakeholder in oil-sands miner Syncrude Canada Ltd., is “ill advised” because of the low oil price and the potential for further share-price declines, said Venator Capital Management Chief Executive Officer Brandon Osten. For the the Canadian Oil Sands purchase “to offer reasonable rates of return, you kind of need $70 dollar-plus oil and you’re not really there,’’ Osten said in an interview Wednesday at Bloomberg’s Toronto office. Venator Capital is a Toronto-based hedge fund with about C$300 million ($233 million) under management, and has shorted Suncor since the first quarter, he said. Suncor, Canada’s largest crude producer, is taking advantage of a prolonged oil rout to renew its effort to take over Canadian Oil Sands after two friendly offers were turned down earlier this year. Suncor has offered to trade 0.25 Suncor share for each share of […]

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Exclusive: Canada railroads cut crude freight rates to lure shipments

The Canadian Pacific railyard is pictured in Port Coquitlam, British Columbia February 15, 2015. Canadian rail companies are slashing rates for shipping crude in their first serious effort to revive an industry rocked by the rout in global oil prices, according to shippers and terminal operators who are seeing discounts of as much as 25 percent. The move highlights how railroads are struggling to compete with pipelines for a share of shrinking crude shipments across North America, particularly in Canada, where a long hoped-for boom in oil sands traffic has fizzled with the oil bust. Canadian National Railway and Canadian Pacific Railway, which together account for the vast majority of crude-by-rail cargoes shipped across the country, are dropping prices, four people familiar with the cuts told Reuters. The size of the cuts varied among sources, leading one source to suggest that railroads may be working with individual shippers to […]

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Oil Company Workers Kiss Their Perks Goodbye

Canadian energy companies have cut thousands of jobs and scrapped projects in a drive to cut costs. Now they’re raiding workers’ perks. Holiday parties, childcare benefits and Fridays off are being targeted as the rout in crude prices grinds into its 16th month, workers and company representatives say. The clampdown on perks comes as firms dig deeper for savings after eliminating about 36,000 oil and natural gas jobs in the crash, according to a tally by the Canadian Association of Petroleum Producers. At Canadian Natural Resources Ltd.’s office in Aberdeen, Scotland, the only microwave is in overdrive after the cafeteria stopped serving hot meals and raised the price of sandwiches. The coffee cups are smaller, too. While the company has avoided job cuts, salary reductions of as much as 10 percent mean some workers are also earning less. ConocoPhillips, which is cutting 500 workers in Canada this year, removed […]

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Canadian Oil Sands Adopts Poison Pill in Wake of Hostile Suncor Bid

Calgary, Alberta-based Canadian Oil Sands said the shareholder rights plan is meant to give its shareholders and board adequate time to evaluate Suncor’s 4.3 billion Canadian dollar ($3.3 billion) all-stock offer and any other unsolicited bid or strategic options. The company reiterated that shareholders take no action on the Suncor bid until the offer has been fully reviewed by its board. “The board will consider Suncor’s unsolicited offer in both the current context and in light of the strong long-term potential of Canadian Oil Sands,” Canadian Oil Sands Chairman Donald Lowry said in a statement. Shareholder rights plans, or poison pills, are designed to dilute the value of a stock by flooding the market with additional shares, which makes it expensive for an investor to acquire a controlling stake. The rights plan, which is in addition to one already in place, would be triggered upon the purchase of 20% […]

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Oil Patch Braces for Exploration Chill After Canada’s Election

As Canada’s oil patch grapples with a price shock, pipeline delays and rising tax rates, the federal election could add another barrier to recovery by reining in a key incentive for development of new wells. (Bloomberg) — As Canada’s oil patch grapples with a price shock, pipeline delays and rising tax rates, the federal election could add another barrier to recovery by reining in a key incentive for development of new wells. Two of the three major parties jostling for power in the Oct. 19 vote are campaigning against “fossil fuel subsidies” and propose tightening the rules for a tax deduction that allows oil-and-gas producers to write off exploration costs against profits entirely in the year they’re incurred. Justin Trudeau’s Liberals and Tom Mulcair’s New Democratic Party would both restrict use of the Canadian Exploration Expenses (CEE) deduction, which Prime Minister Stephen Harper’s Conservatives expanded in their pre-election budget. […]

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TransCanada Says Cutting 20% Of Senior Management Positions

CALGARY, Alberta, Sept 24 (Reuters) – Pipeline company TransCanada Corp is cutting 20 percent of its senior management positions as a result of the continuing slump in oil prices, a company spokesman said on Thursday. TransCanada is the company behind the controversial and long-delayed Keystone XL pipeline to the United States, and the cross-Canada Energy East project. (Reporting by Nia Williams; Editing by Chris Reese)

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Native Women Shut Down Pipeline “Consultation”

Montreal — First Nations women and supporters sent a clear message to TransCanada this Wednesday evening that the Energy East pipeline is not welcome through First Nations lands. “What we want TransCanada to understand is that no means no. This is Kanien’ke, this is Mohawk Land and we are tired of occupation, we are tired of environmental disaster.” said Lickers at Wednesday night’s hearing. “This is our land and we are going to protect it.” Amanda Lickers and Vanessa Gray were 2 of several First Nations opponents to the Energy East present to express their outrage at the public hearings hosted by the Communauté métropolitaine de Montréal. The purpose of the hearings is to establish a community report to submit to Office of Public Hearings on the Environment (BAPE) and the National Energy Board (NEB). “But the consultation process does not work”, states Lickers, whose family is from Six […]

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Imperial Cuts Spending on Existing Projects as Costs Drop

Imperial Oil Ltd. has been able to lower the amount of capital reinvestment needed to sustain the business to about C$1.2 billion ($900 million) a year from C$2 billion a year ago, helped by shrinking supplier costs. Imperial expects overall annual spending on expansion and maintenance to average about C$2.5 billion in the coming years as it reduces costs and slows expansion, Chief Executive Officer Rich Kruger said Wednesday in a webcast of the company’s annual investor day. The company is basing its operations on the current price for oil, which is helping to create a “challenging” environment for Canadian producers, Kruger said. “If prices rise, so be it,” he said, adding that the company is planning for the “long term.” Canadian oil-sands producers have cut budgets along with the sinking price for crude this year. Imperial operates bitumen mining at its Kearl site, in addition to its Cold […]

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Challengers Attack Canada’s Pro-Oil Harper for Stalled Pipelines

Stephen Harper’s two challengers for prime minister have regularly taken swipes at him during Canada’s election campaign for failing to get oil pipelines built. Harper, a Conservative who represents a Calgary constituency, is regarded as one of the most petroleum-friendly politicians in Canada. Therein lies the problem, according to his opponents. How to start up new pipelines is a major preoccupation for a Canadian oil industry increasingly worried about getting product to market. The troubled Keystone XL project is just one of four proposals mired in delay due to concerns over carbon emissions from the oil sands and potential spills. “He hasn’t got pipelines built. He has made the oil sands an international pariah,” Liberal Leader Justin Trudeau said of Harper during a leaders debate on the economy last week that happened to be held in hard-hit Calgary. “Under Stephen Harper’s stewardship,” New Democratic Party Leader Tom Mulcair said, […]

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Oilsands may face severe water shortages, Athabasca River study suggests

The study also confirmed that overall flows in the Athabasca River are declining. That’s something that was already known and thought to be mainly because of the melting and shrinking of glaciers, seen in this photo of the river’s headwaters. (David Sauchyn) The river that provides water to the oilsands industry is much more prone to multi-year droughts than modern records show, suggesting that the industry’s current level of water use may not be sustainable, a new study suggests. The oilsands industry needs 3.1 barrels of fresh water to produce a barrel of crude oil from oilsands mining and 0.4 barrels of fresh water to produce a barrel of crude oil from oilsands drilling, according to the Canadian Association of Petroleum Producers . That water comes mainly from northern Alberta’s Athabasca River, and oilsands account for 72 per cent of estimated water use from the river. The government regulates […]

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ConocoPhillips Said to Be Near Deal to Sell Canadian Assets

ConocoPhillips, the third-largest North American oil and gas producer, is nearing a deal to sell several Western Canadian assets to various buyers including Canadian Natural Resources Ltd., people with knowledge of the matter said. An agreement could be reached as early as this week, said the people, who asked not to be identified because the discussions are private. A deal hasn’t been finalized and talks could still fall apart, the people said. Production from the properties, located in Alberta, British Columbia and Saskatchewan, represents about 20 percent of the Houston-based company’s Canadian volumes outside of oil sands. The properties produce the equivalent of almost 35,000 barrels of oil and gas a day and include a net working interest in 2.4 million acres for future drilling, according to the marketing material for the assets, an area slightly larger than Yellowstone National Park. Based on that, the group of assets could […]

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Suncor’s Fort Hills Deal Shows Slump Hitting Oil-Sands Assets

Suncor Energy Inc.’s bargain on a further 10 percent stake in its Fort Hills oil-sands project shows how the energy market crash is reducing asset values in one of the most expensive places on Earth to extract crude. Canada’s largest energy producer will pay Total SA C$310 million ($234 million) for an additional 10 percent share in the C$15 billion oil sands mine being built in northern Alberta, the companies said Monday. That’s less than a third of the value Teck Resources Ltd., another partner in the project, ascribes to its stake. Teck said its 20 percent is worth C$2.3 billion in a July release. The deal is also 31 percent less than the C$450 million Desjardins Capital Markets assumes a 10 percent stake in Fort Hills is worth. Desjardins based its estimate on a reduced long-term U.S. oil price of $80 a barrel starting in 2017, Justin Bouchard, […]

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Canadian gas exports to U.S. plummet

Canadian energy regulators reports gas exports to the United States are down dramatically. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Sept. 17 (UPI) — Canadian natural gas exports to the United States for the seven years ending in 2014 are down significantly because of U.S. shale production, a regulator said. The National Energy Board said in a market snapshot natural gas exports are down dramatically. For the eastern United States, exports are down more than 65 percent for the seven years ending 2014. For the market in the U.S. Midwest, natural gas exports are down nearly 23 percent through 2014. "Rapid development of unconventional gas projects has increased U.S. natural gas production," the NEB said. "As a result, natural gas exports from Canada to the U.S. have been decreasing." NEB said pipeline revisions have shifted exports away from Midwest markets as well. Canada relies heavily on export revenue from oil […]

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Ontario refineries shove foreign oil aside

Enbridge pipelines credited for shifting eastern Canadian refineries away from foreign crude oil. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Sept. 10 (UPI) — Refineries in Ontario have shifted from foreign to domestic supplies of crude oil in the 14 years ending in 2014, the national energy regulator said. The National Energy Board attributed pipeline developments from Enbridge for the turnaround beginning in 2000, when 46 percent of the crude oil refined in Ontario came from foreign supplies. By 2014, foreign supplies were nearly eliminated from the provincial downstream sector as more domestic crude oil moved east. In the five years ending in 2010, Enbridge expanded a pipeline system to move more western Canadian crude oil to Ontario and U.S. refineries so that, by 2010, domestic crude accounted for 79 percent of Ontario feedstock. Since 2013, Enbridge completed further pipeline expansions and overhauls. "By 2014, almost all of the crude […]

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Canadian Oil Sands Not Planning to Sell Future Production

Canadian Oil Sands Ltd. isn’t planning to sell future royalty production after considering the option, a company spokeswoman said. Canadian Oil Sands has enough liquidity to survive a period of low oil prices, Siren Fisekci, a company spokeswoman, said in a phone interview on Tuesday. The company isn’t pursuing any other plans at the moment to raise capital and isn’t for sale, she said. Management of the largest owner of Syncrude Canada Ltd. spoke with Holder Highfields Capital about selling some future production for upfront payment to help boost the company’s flagging shares, the Wall Street Journal reported earlier. The oil-sands producer in January cut its dividend the most since 1998 to cope with sinking crude prices. Shares of Canadian Oil Sands have declined 38 percent this year. The stock rose 3.7 percent to C$6.50 at 2:44 p.m. in Toronto.

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In Canada’s prairies, crude slump puts first oil patch in reverse

Sr. foreman Dwayne Roy checking tap for production at an active well site about 60 kilometres east of field office during a tour of Gear Energy’s well sites near Lloydminster, Saskatchewan August 27, 2015. Amid the corn and canola fields of eastern Saskatchewan, oil foreman Dwayne Roy is doing what Saudi Arabia and fellow OPEC producers are loath to do: shutting the taps on active wells. Inside a six-foot-square wooden shed that houses a basic hydraulic pump, the Gear Energy Ltd employee demonstrates how shutting down a conventional heavy oil well in this lesser-known Canadian oil patch is as simple as flipping a switch. His company has already done so hundreds of times this year, making the Lloydminster industry among the first in the world to yield in a global battle for oil market share that has sent crude prices tumbling to six-year lows. Gear Energy Ltd, has idled […]

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The Oil-Sands Glut Is About to Get a Lot Bigger

The last place oil producers want to be when prices plummet to profit-demolishing lows is midstream on a billion-dollar project in one of the costliest parts of the planet to extract crude. Yet that’s exactly where half a dozen oil sands operators from Suncor Energy Inc. to Brion Energy Corp. find themselves with prices for Canadian oil now hovering around $30 a barrel. While all around them projects have been postponed or canceled, their investments were judged too far along when the oil game suddenly moved from offense to defense. These projects will add at least another 500,000 barrels a day — roughly a 25 percent increase from Alberta — to an oversupplied North American market by 2017. For companies stuck spending billions in a downturn, the time required to earn back their investments will lengthen considerably, said Rafi Tahmazian, senior portfolio manager at Canoe Financial LP. “But the […]

Posted On : Published By : Tom Whipple
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Canadian oil sector edging forward

More Canadian oil projects despite slumping oil-based economy. Photo courtesy of Husky Energy CALGARY, Alberta, Sept. 2 (UPI) — Despite working in a weak market, two companies — Husky Energy and ConocoPhillips — announced the start of new oil operations in Canadian oil sands. Husky announced the start of operations at its Sunrise energy project in Alberta. Production began in April and the new phase of development should put the project closer to full capacity of 60,000 barrels of oil per day by the end of next year. Data from the Canadian Association of Petroleum Producers show oil sand deposits, centered largely in Alberta province, hold an estimated 167 billion barrels of oil, the third largest reserves in the world. Canada depends heavily on oil and natural gas for government revenue. With crude oil prices more than 50 percent below mid-2014 levels, the nation has teetered on the brink […]

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Cnooc Canadian Oil-Sands Plant to Shutdown Amid Pipeline Probe

CALGARY, Alberta—The Canadian unit of Chinese state-controlled energy giant Cnooc Ltd. CEO 0.69 % said Wednesday it will halt production at a 50,000 barrel-a-day oil-sands plant indefinitely as part of its effort to comply with an order from regulators forcing it to shut down pipelines at the site. The move comes after the chief energy regulator in the Western Canadian province last week suspended operating licenses affecting 95 pipelines at Cnooc subsidiary Nexen Energy ULC’s Long Lake heavy oil extraction facility in northern Alberta for suspected failure to comply with certain rules . Shutting down Long Lake is the latest in a string of setbacks at the plant , which started up in 2008 but has never reached its capacity of 72,000 barrels a day. The loss of output is a blow to parent company Cnooc, which bought Nexen for $15 billion in 2013 and installed its own management […]

Posted On : Published By : Tom Whipple
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Production Woes at Oil-Sands Giant Syncrude to Impact Full-Year Output

By Chester Dawson CALGARY, Alberta– Canadian Oil Sands Ltd., the largest owner of the giant Syncrude oil-sands project, said Wednesday that production of synthetic crude would be "minimal" for two weeks after a weekend fire at Syncrude’s main plant, and that the lost production would impact its annual output. The company halted production after a blaze on Saturday damaged equipment at its Mildred Lake strip mine’s crude processing facility in northern Alberta. The loss of some 200,000 barrels per day of output has contributed to a sharp spike in prices of Canadian synthetic oil this week. "Syncrude plans to implement a phased recovery strategy with minimal synthetic crude oil shipments and operating rates for the next two weeks, " Canadian Oil Sands said in a statement late Wednesday. Production is expected to return to more normal levels at the end of the month, it said. The company said that […]

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Two New Canadian Oil Sands Projects Started Despite Price Pain

CALGARY, Alberta, Sept 1 (Reuters) – ConocoPhillips and Husky Energy Inc announced key milestones in bringing two new oil sands projects online on Tuesday, underlining how some producers in the high-cost sector are boosting production even as crude prices tumble. The two projects will add around 178,000 barrels per day to the 2.3 million bpd already being produced from the oil sands, the world’s third largest crude reserves after Saudi Arabia and Venezuela. The Canadian Association of Petroleum Producers forecast in June that oil sands production to hit 3.1 million bpd in 2020. That forecast may be overstated however, as Imperial Oil has since delayed plans to expand its Kearl project by another 125,000 bpd. The start up announcements on Tuesday also come as around 900 oil company jobs were cut in Canada, 500 of those by ConocoPhillips, and the U.S. benchmark crude dropped more than 6 percent on […]

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Canadian producer Penn West slashing jobs

Canadian oil and gas producer Penn West shedding more than 400 jobs to ensure durability during weak crude oil market. File photo by ekina/Shutterstock CALGARY, Alberta, Sept. 1 (UPI) — Canadian oil and gas producer Penn West Petroleum said it would cut more than 400 jobs, or around 35 percent of its workforce, to endure a weak oil market. The company said it was cutting capital spending, suspending dividends and "significantly" cutting costs through a 35 percent workforce reduction. President and Chief Executive Officer Dave Roberts said steps taken today will help the company endure an era of historically low crude oil prices. "Limiting our capital programs to the funds flow generated from our assets and suspending our dividend are necessary steps," he said in a statement. "We remain flexible and well positioned to move forward when oil prices improve." The company said it expects to save about $34 […]

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Canada orders Alberta pipeline closures

Canada issues suspension order for Nexen pipeline systems amid mounting safety concerns. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Aug. 31 (UPI) — Canadian energy company Nexen said safety was its top priority after a provincial regulator ordered dozens of pipelines closed because of maintenance issues. The Alberta Energy Regulator issued a suspension order to Nexen Energy, a Canadian subsidiary of the China National Offshore Oil Corp., calling on the company to shut down more than 90 of its oil and gas networks after the company was found to be in non-compliance with federal regulations. The order came after last month’s report of a failure on the company’s Long Lake pipeline network in the province. About 31,000 barrels of a mixture of oil, water and sand spilled in Alberta from the system. "Given that this company has already had a pipeline failure at this site, the AER will not lift […]

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Canadian Oil Sands Halts Crude Production at Oil-Sands Giant Syncrude

A dump truck is loaded with oil sands at the Syncrude Canada Ltd. mine. CALGARY, Alberta— Canadian Oil Sands Ltd. COSWF 2.60 % , the largest owner of the giant Syncrude oil-sands project, said on Sunday that it has halted production after a fire damaged equipment at its synthetic crude oil processing facility in northern Alberta. The company said the fire, which occurred early Saturday and was extinguished without any injuries, affected pipes connected to a water treatment unit at Syncrude’s heavy oil upgrader on the site of its Mildred Lake oil-sands surface mine. The cause of the blaze is under investigation, it said. While the upgrader’s core machinery wasn’t damaged and the strip mine continues to operate, Canadian Oil Sands said in a statement issued late Sunday that “synthetic crude oil production has been temporarily suspended while a recovery and repair strategy are being developed.” Canadian Oil Sands […]

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Canada’s Oil-Dependent Alberta Province Projects Record Deficit

CALGARY, Alberta—The government of Alberta said Monday its deficit will hit record levels due to the swoon in crude oil prices and an economic slowdown and will consider increasing taxes to reduce that budgetary shortfall. Finance Minister Joe Ceci said Alberta expects the deficit to grow to an all-time high of 5.9 billion Canadian dollars ($4.5 billion) in the fiscal year that began April 1. He said the deficit could hit C$6.5 billion if oil prices remain low, reflecting the province’s reliance on crude production as its chief engine of growth. “There is no doubt that our big challenge is commodity prices that our government in Alberta does not control,” Mr. Ceci said at a news conference in the provincial capital of Edmonton. “No one expected global oil prices to reach levels that they’re at today,” he told reporters. The deficit in Alberta is a poor omen for Canada […]

Posted On : Published By : Tom Whipple
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Canadian Oil Sands Halts Crude Production at Oil-Sands Giant Syncrude

A dump truck is loaded with oil sands at the Syncrude Canada Ltd. mine. CALGARY, Alberta— Canadian Oil Sands Ltd. COSWF 2.60 % , the largest owner of the giant Syncrude oil-sands project, said on Sunday that it has halted production after a fire damaged equipment at its synthetic crude oil processing facility in northern Alberta. The company said the fire, which occurred early Saturday and was extinguished without any injuries, affected pipes connected to a water treatment unit at Syncrude’s heavy oil upgrader on the site of its Mildred Lake oil-sands surface mine. The cause of the blaze is under investigation, it said. While the upgrader’s core machinery wasn’t damaged and the strip mine continues to operate, Canadian Oil Sands said in a statement issued late Sunday that “synthetic crude oil production has been temporarily suspended while a recovery and repair strategy are being developed.” Canadian Oil Sands […]

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Canada’s oil diversity may be paying off

Canadian oil export data suggests healthy balance in an era of low crude oil prices. Photo by Heather Snow/Shutterstock CALGARY, Alberta, Aug. 27 (UPI) — Canadian crude oil exports in the depressed energy market were down for conventional oil but up for heavier oil sands, national data show. The National Energy Board reported exports of lighter conventional crude oil down 25 percent from January to 772,000 barrels per day in June. Compared with June 2014, total light crude oil exports are down 10 percent. For the heavier oil sands , however, NEB data show a 6 percent increase from January to 2.2 million bpd in June and up 13.5 percent year-on-year. In July, NEB released its report on full-year 2014 production. Though crude oil prices fell roughly 50 percent from June 2014 to year’s end, the NEB said the energy sector was resilient and export revenue of $100 billion […]

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Western Canadian Crude Oil Stockpiles Rise to a Record

Stockpiles of Western Canadian crude reached a new high last week, according to a report from a leading energy market data provider, in a further sign of the North American oil glut rising as energy prices fall. The rapid rise in inventory, which may worsen the price discount between Western Canadian and other crudes, comes as global demand for oil hasn’t kept up with the pace of production increases. Oil prices have slumped to six-year lows in recent trading, prompting North American producers to park more crude in storage tanks as they wait out the slump in the hopes of a rebound in demand and prices. Storage levels in Western Canada, which includes several tank farms in the oil-rich province of Alberta, rose 10% on the week to a record of 27 million barrels as of August 21, according to data from Genscape of Louisville, Ky. That topped the […]

Posted On : Published By : Tom Whipple