Category: Canada

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 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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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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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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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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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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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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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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