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Canada Petroleum Producers Cut 2030 Output Forecast

The Canadian Association of Petroleum Producers cut its 2030 oil production forecast by 17 percent as capital expenditures slipped after crude prices tumbled. The world’s third-biggest holder of crude reserves will produce 5.3 million barrels a day, down from 6.4 million forecast a year ago, CAPP said. The organization cut its forecast after oil dropped to $42 a barrel this year from near $108 in June as the Organization of Petroleum Exporting Countries maintained quotas amid a surge of U.S. shale oil. The drop has curtailed capital expenditure by oil and gas producers to C$45 billion ($36.5 billion) in 2015 from C$73 billion last year, CAPP said. Expenditure in the oil sands fell to C$23 billion this year from C$33 billion. “Companies are reverting to expansion of existing projects,” said Greg Stringham, a vice president at the Canadian Association of Petroleum Producers. “As far as new projects, those are […]

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Canadian Oil Sands Resume Output as Wildfire Threat Recedes

CALGARY—Two major Canadian oil sands operators said Monday they have resumed output at sites that had been shut down by a more than two-week old wildfire in northern Alberta, which exports much of its crude oil production to the U.S. The blaze had shut-in nearly 10% of Canada’s oil sands output, or about 233,000 barrels a day, since it was first detected on May 22. Canadian Natural Resources Ltd. CNQ -2.32 % said it expects to resume full production later this week at its 80,000 barrel-per-day Primrose site, which had been evacuated and shut down, and its 30,000 barrel-a-day Kirby South operation, which was forced to cut output due to the temporary closure of a pipeline. Cenovus Energy Inc. CVE -3.28 % said it began ramping up production at its 135,000 barrel-per-day Foster Creek site over the weekend, but didn’t provide an estimate for when output levels would return […]

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Canadian oil exports by rail fall

Canadian crude oil exports by rail down by more than a quarter year-on-year, federal data show. Photo by Steven Frame/Shutterstock CALGARY, Alberta, June 3 (UPI) — Canadian crude oil exports by rail for the three months ending in March declined by more than 25 percent year-on-year, federal data show. The National Energy Board updated data on total crude oil exports by rail , showing an average 119,755 barrels per day were shipped for the three months ending in March. That’s down 24 percent from the three-month period ending in December and 27 percent less than the same period in 2014. Though rail shipments have declined recently, the volume delivered through March 2015 is six times greater than the volume delivered for the three months ending March 2012, data show. North American crude oil production has increased to the point that it’s more than the existing pipeline infrastructure can handle, […]

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Western Canadian Wildfires Shut in Oil Sands Production

CALGARY—Wildfires that have crimped Alberta’s oil sands production for more than a week continue to burn, officials said Monday, dealing another blow to producers already spooked by low crude prices and expected royalty increases. Some 1,400 firefighters in northern Alberta—including hundreds from neighboring provinces—have been working to douse or corral dozens of wildfires which have raged for several days, spread by strong winds and dry underbrush in the boreal forests that dominate the landscape. Of 35 blazes currently being fought, five have yet to be contained, including the largest which has engulfed nearly 80,000 acres in the province’s northeast, said Richard Horne, a spokesman for the Alberta Agriculture and Forestry Ministry. “Our crews are still working around the clock to get the fire under control and build a perimeter,” Mr. Horne said, adding that light rain and milder winds over the weekend helped firefighters extend a fire proof zone […]

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Alberta Wildfires Burn For 6th Day, 10% Of Oil Sands Crude Offline

CALGARY, Alberta, May 28 (Reuters) – Firefighters battled wildfires in northern Alberta, Canada’s biggest crude-producing region , for a sixth day on Thursday, with two blazes near oil sands facilities still out of control. The wildfires have forced producers in the Western Canadian province, the largest source of U.S. crude imports, to shut in 233,000 barrels per day of crude production, around 10 percent of total oil sands output. The biggest fire, on the Canadian military’s Cold Lake Air Weapons Range, had grown in size to 20,000 hectares (49,000 acres) from 17,000 hectares on Wednesday. That blaze has forced Cenovus Energy Inc and Canadian Natural Resources Ltd to shut down production and evacuate staff from their Foster Creek and Primrose oil sands projects. Janelle Lane, a wildfire information officer at the Alberta government, said the fire had advanced to roughly 15 kilometres (9.3 miles) away from Cenovus’s Foster Creek […]

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Alberta fires threaten oil installations

More than 30 new blazes erupt in Alberta as energy companies report key installations under threat. File photo Heinz Ruckemann/UPI CALGARY, Alberta, May 28 (UPI) — Wildfires are moving closer to key oil installations in Alberta province as the government reports nearly three dozen new outbreaks in the last 24 hours. The provincial government in Alberta enacted an open-fire ban amid a persistent threat of wildfires. The government expects hot, dry conditions to continue at least through the end of the week . "In the last 24 hours there have been 33 new wildfires," the provincial government said in its latest update. "The wildfire outlook in Alberta continues to be severe." Since April 1, more than 600 wildfires have been reported , charring more than 32,000 acres of land. As of late Wednesday, there were 63 active wildfires in the province and 13 are out of control. Canadian energy […]

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Hundreds more oil sands staff evacuated on Alberta fire threat

CALGARY, Alberta Statoil ASA, MEG Energy Corp and Cenovus Energy Inc evacuated hundreds of workers from three oil sands projects in northeastern Alberta on Tuesday as wildfires raged through the key crude-producing region. The latest evacuations are in addition to project shutdowns by Cenovus and Canadian Natural Resources Ltd over the weekend, as companies rushed to remove staff from potential danger. At least 233,000 barrels per day of oil sands production, 9 percent of Alberta’s total oil sands output, have been suspended because of the fire risk, though none of the projects have been damaged. The Alberta government said there are 70 forest fires now burning in the province, with 20 considered out of control. Lightning storms are forecast for Tuesday evening, increasing the risk of more fires, a government spokesman said. Cenovus evacuated all 90 staff from its Narrows Lake oil sands project on Tuesday, which is not […]

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After a Political Reversal in Alberta, ‘Anything Seems Possible’

Photo Rachel Notley, leader of the New Democratic Party in the Canadian province of Alberta, at the ceremony in Edmonton on Sunday in which she was sworn in as the province’s premier. Credit Topher Seguin/Reuters EDMONTON, Alberta — This is the Canadian province known for oil, cowboys and rodeos, and as the adopted home of Prime Minister Stephen Harper , whose Conservative Party has long dominated politics. So it seemed especially jarring when a boisterous crowd in this bastion of conservative voting known as Canada ’s Texas celebrated its new premier this weekend: a woman regarded by much of the country as a leftist who vows to take on big oil and champion the poor. The 51 newly elected New Democratic Party members who sat behind the premier, Rachel Notley, their leader, in the swearing-in ceremony on Sunday did not resemble typical revolutionaries. Largely political novices, they dressed like […]

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Crude-Oil Exports to Canada Kept U.S. Gulf Coast Storage Hubs Below Capacity

Crude-oil exports to Canada provided a crucial relief valve for U.S. producers this year, according to a new report from data provider Genscape Inc. Almost 19 million barrels were shipped from the U.S. Gulf Coast to Canada’s eastern coast from the beginning of the year through early May, according to Genscape. Without those shipments, storage terminals in Corpus Christi, Texas, would have run out of capacity by now, according to the report, which is slated to be released on Wednesday. Though federal law prohibits exports of most U.S. crude oil, there is an exception for shipments to Canada. As production in the U.S. and in Canada has increased in recent years, more oil has criss-crossed the border, allowing both countries to import less crude oil from outside North America. Growing U.S. oil output has raised concerns among traders that some storage locations could reach full capacity. If an area […]

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Canada oil group vows to strengthen industry

Canadian oil group pledges to work to make the industry stronger than ever in the evolving energy market. Photo by Heather Snow/Shutterstock CALGARY, Alberta, May 15 (UPI) — The oil and gas industry in Canada said it was ready to work with the incoming provincial government in Alberta to strengthen a sector hurt by low oil prices. The Canadian Association of Petroleum Producers announced it would form an industry group to work alongside Alberta Premier-elect Rachel Notley to advance their interests in the oil-rich province and all of Canada. The Canadian National Energy Board said it was monitoring crude oil prices as U.S. oil production gains push markets toward the supply side. Low energy prices means less spending on exploration and production and Kevin Brin, director of the Canadian oil sands division at consultant firm IHS, said in a February interview a potential slowdown in Canada was a reflection […]

Posted On : Published By : Tom Whipple