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Repsol Agrees to Buy Canada’s Talisman for $8.3 Billion

Repsol SA (REP) , Spain ’s largest energy company, agreed to buy Talisman Energy Inc. (TLM) for $8.3 billion, ending a months-long search for acquisitions to help boost crude reserves and production. Under the terms of the all-cash offer, Talisman shareholders will receive $8, or C$9.33, for each share they own, according to statements from both companies. That’s a 60 premium to Talisman’s 30-day weighted average price, the Canadian company said. Repsol has been seeking to spend about $10 billion on takeovers since it received compensation in May from Argentina for the 2012 nationalization of YPF SA . In losing the Argentine producer, Repsol gave up almost half of its oil and gas reserves and has been looking for ways to replace them. “The transaction with Talisman is the result of an thorough analysis of more than 100 companies and assets around the world,” Repsol Chief Executive Officer Josu […]

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Canada Finance Minister Confident in Economy Amid Oil Decline — 2nd Update

By Paul Vieira OTTAWA–The Canadian economy is in solid shape and the government remains on track to record a budget surplus next year amid the steep decline in oil prices, Finance Minister Joe Oliver said Monday. Mr. Oliver’s comments, at a meeting here with provincial finance ministers, came as signs emerge that the energy swoon is starting to weigh on real-estate markets in resource-rich regions of the country. The sharp fall in crude-oil prices has become a source of consternation in regions of Canada that rely on commodities to drive income growth. Crude oil, which fell below the $57 a barrel mark Monday, is Canada’s top export, and the 40%-plus price fall from its recent peak has prompted economists to cut their growth and inflation forecasts. Mr. Oliver, though, remained bullish on the Canadian outlook. "We are confident we will achieve a budget balance next year," he said, adding […]

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Canada Heavy Oil Nearing $40 Threatens Oil Sands Projects

Canadian heavy crude fell to near $40 a barrel, threatening projects under construction as producers boosted output and space on a pipeline was rationed. Imperial Oil Ltd. (IMO) is increasing output at its Kearl oil sands project to 110,000 barrels a day after a shutdown last month, Pius Rolheiser, a Calgary-based spokesman, said by phone yesterday. Enbridge Inc. apportioned space on the Spearhead pipeline, which carries Canadian crude south to Cushing, Oklahoma , after demand to ship on the line exceeded capacity, according to a company statement. Heavy West Canadian Select rose 82 cents to $43.01 a barrel after falling to $42.19 a barrel yesterday, the lowest since April 2009, data compiled by Bloomberg showed. Crude has fallen into a bear market as U.S. output surges to the highest in more than three decades. Calgary-based Cenovus Energy Inc. (CVE) said today it “substantially” slowed development plans at the Narrows […]

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Canada vows to make pipelines safer

Government of Canadian Prime Minister Stephen Harper vows to make pipelines safer. UPI/Yao Dawei/Pool OTTAWA, Dec. 9 (UPI) — The Canadian government said it’s committed to a world-class regime for pipeline safety, calling for new "polluter pays" rules and other control measures. The government of Prime Minister Stephan Harper outlined amendments to pipeline safety rules , rules it says will lead to one of the safest networks of pipelines in the world. "The Harper government is committed to having a world-class safety system in place for pipelines and other energy transportation and production sectors," it said. "No development will proceed unless rigorous environmental and regulatory reviews have indicated they are safe for Canadians and the environment." Counting electricity and coal, the energy sector accounts for about 7 percent of the gross domestic product in Canada. Exploration and production alone accounts for more than $54 billion annually in capital expenses. […]

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Petronas Delays Go-Ahead for Canadian LNG Project, Cites Costs

VANCOUVER, Dec 3 (Reuters) – Petronas, Malaysia’s state-owned oil and gas company, delayed giving the final go-ahead on Wednesday for its planned investment in a $11 billion liquefied natural gas export terminal in British Columbia, citing high costs and other outstanding issues. "Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive FID (final investment decision) can be undertaken," the company said in a statement. Petronas had hoped to be in a position to green light its Pacific NorthWest LNG project before the end of 2014, but said it still needs more clarity on "substantive items of importance" and is reviewing the impact of declining oil prices on the economic viability of the remote development. The company warned back in October that the economics of the project, part of a roughly $35 billion investment in Canadian gas, were marginal and said […]

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IEA Chief Economist Urges Oil Producers to Invest in New Projects

Petroleum storage tanks at the Suncor tar sands operations near Fort McMurray, Alberta, Canada. IEA… ENLARGE Petroleum storage tanks at the Suncor tar sands operations near Fort McMurray, Alberta, Canada. IEA has singled out Canada as a key focus area for future oil production. Reuters MADRID—The International Energy Agency’s chief economist on Friday urged oil producers to boost investment in new projects to meet an anticipated rise in demand, a move that he said may avoid oil price spikes in coming years. Speaking in Madrid during the presentation of the IEA’s annual report, Fatih Birol said that a tumble in oil prices makes it hard to believe a supply crunch may happen any time soon, but the slow pace of development of new projects makes it imperative to act. “We shouldn’t just ignore tomorrow’s challenges,” Mr. Birol said. “This is hard point to make in this context of lower […]

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Canadian Dollar Ends Lower As Oil Prices Plummet

By Don Curren TORONTO–The Canadian dollar ended sharply lower on Friday, suffering another day of deep losses, as oil prices spiralled lower. The currency didn’t derive sustained support from unexpectedly robust data on gross domestic product for the third quarter early in the session. The U.S. dollar was recently at C$1.1429, up from C$1.1332 at Thursday’s close, according to data provider CQG. The Canadian dollar initially advanced after news that Canada’s GDP grew 2.8% in the third quarter, much more than the expected 2.1% and the Bank of Canada’s previous forecast of 2.3%. The Canadian currency drove the U.S. dollar to C$1.1366 immediately after the data, but it was unable to hold onto gains, as crude-oil prices continued the decline after Thursday’s OPEC’s decision not to reduce production targets. The early about-face and subsequent losses by the Canadian dollar proved a little puzzling to some market participants and a […]

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Alberta Producers With World’s Cheapest Oil Face Cascading Woes

Canada ’s biggest energy producers now face the same prospects of shrinking budgets and declining profit as their smaller rivals as prices drop for what’s already the world’s cheapest oil. Producers including Suncor Energy Inc. (SU) and Canadian Natural Resources Ltd. (CNQ) , which each fell the most in at least three years yesterday, operate in one of the most expensive places on earth to produce oil. If crude prices continue sinking following OPEC’s decision not to cut global oil supplies, Canada’s producers big and small will have to tighten their belts to prepare for declining profits. “This is a pretty big shock,” said Justin Bouchard, an analyst at Desjardins Securities Inc. in Calgary. “There’s no question there’s going to be a slowdown. Even the big guys will have to look at their capital spending plans.” Western Canada Select, the Canadian benchmark, has lost more than a third of […]

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Oil Boom Triggering Cowboy Shortage Across Canada

There’s been a lot of attention paid to how Canada ’s oil boom has helped make gasoline cheaper. What many people may not realize is that the boom is also driving up the prices they pay for burgers and steaks. Surging energy investment in Prairie Provinces, home to most of the nation’s farms and cattle ranches, has boosted domestic crude output to a record and sent pump prices to a three-year low. That’s led to jobs on drilling rigs or pipe crews paying two-thirds more than those in livestock, luring cowboys and beef-plant workers to the oil patch. The labor shortage is squeezing a cattle industry already diminished over the past decade by mad cow disease, drought and floods. The herd in Canada, the world’s eighth-largest beef exporter, is the smallest in 21 years. Beef supplies are so tight that Costco Wholesale Corp. (COST) is importing more meat from […]

Posted On : Published By : Tom Whipple