The Globe and Mail reports that Canada is proposing to support the carbon-capture projects of oil-sands companies.
The Globe and Mail reported that Canada Growth Fund, the federal funding agency of Canada, has proposed to fund a multi-billion dollar carbon-capture project by Pathways Alliance. The Alliance represents Canada's largest oil sands producers. According to a report published on Sunday, which cited sources familiar with this matter, the CGF's offer is likely to start further negotiations. However, the final agreement is still months away as the two sides are at odds on certain key terms. Carbon capture is the process by which the carbon dioxide produced from industrial activity can be stored underground.
Canada Oil Producers Fill Pipelines, Railroads
Canadian oil producers are running out of options to get crude to market as pipeline and rail capacity fills up, driving prices to four-year lows and increasing the risk of firms having to sell cheaply until at least late 2019. This will drive down the profit margins for the oil sands industry, already struggling to compete with cheaper and abundant supplies from U.S. shale. A number of foreign oil majors have left Canada's oil sands to invest in more profitable U.S. shale plays, selling over $23 billion in Canadian assets this year alone.
Innovators Toil to Revive Canada Oil Sands
In the boreal forests and on the remote prairies of Alberta, a handful of firms are running pilot projects they hope will end a two-decade drought in innovation and stem the exodus of top global energy firms from Canada's oil sands. They are searching for a breakthrough that will cut the cost of pumping the tar-like oil from the country's vast underground bitumen reservoirs and better compete with the booming shale industry in the United States. If they fail, a bigger chunk of the world's third-largest oil reserves will stay in the ground.
Suncor to Grow Oil Sands as Oil Majors Flee
Even as the world's largest energy companies exit Canada's high-cost oil sands the country's top producer Suncor Energy is lining up its next phase of growth in the world's third largest crude reserves. The preliminary plans for new projects in remote northern Alberta follow a stream of multi-billion dollar deals in which international oil majors sold off oil sands assets to Canadian producers, who are betting technology and economies of scale will make the region competitive with other plays globally.
Oil at One-Month High after U.S. Missile Strike
Syria missile strike bears no impact on oil market fundamentals; two Canadian oil sands producers cut output after fuel shortage. Oil prices hit a one-month high on Friday after the United States fired missiles at a Syrian government airbase, sending shockwaves through global markets and raising concerns that the conflict could spread in the oil-rich region. The toughest U.S. action yet in Syria's six-year-old civil war has ramped up geopolitical uncertainty in the Middle East. Oil, gold, foreign exchange and bonds reacted strongly to the attack but reversed some of the sharp moves later in the session.
New Pipelines No Silver Bullet for Battered Canada Oil Industry
Canada's oil sands producers are getting a long-awaited boost in export capacity, but the two pipeline projects approved this week will not be a silver bullet for the industry's woes unless crude prices pick up or companies improve their operating efficiency. The Canadian government approved Kinder Morgan's plan to triple volumes on its Trans Mountain pipeline to 890,000 barrels per day, and cleared Enbridge Inc's Line 3 replacement project, which will roughly double capacity to 760,000 bpd. Enbridge's Northern Gateway pipeline was rejected.
Canada Pipeline Opponents to take on Kinder Morgan, Ottawa
If Canada approves Kinder Morgan's Trans Mountain pipeline expansion, the company's four-year campaign for the project will be far from over. Next up is a battle against hardening opposition amongst some communities along its planned route. The C$6.8 billion ($5.04 billion) project is a big step toward opening up Asian markets to supply from Canada's massive oil sands. Kinder Morgan plans to build a pipeline parallel to an existing line and nearly triple capacity on the artery to 890,000 barrels per day.
Canadian Oil Sands Producers Mull New Investments
Two Canadian energy companies on Thursday outlined preliminary plans to add new oil sands production at their northern Alberta operations, a sign that the industry may have come to grips with the slump in crude prices after two years of heavy cost-cutting. Cenovus Energy said, as it released second-quarter earnings, that it was doing engineering and rebidding work on phase G of its Christina Lake thermal project, which was put on hold in 2015. It said it would decide whether to proceed with the 50,000 barrel per day expansion by December.
Bottlenecks Expected as More Canadian Oil Meets Tight Pipe Space
Deeply-discounted prices for heavy crude from the heart of Alberta's oil sands look set to sink further, thanks to hundreds of thousands of barrels of new supply that will have difficulty finding space in crowded pipelines, traders say. It would be another hit for Canada's ailing oil sands producers, who have slashed millions in capital expenditures and been forced to lay off thousands of workers over the two-year downturn in oil prices. Until recently, pipeline space in Alberta has not been an issue as May wildfires took about half of the oil sands' production capacity offline.
Bottlenecks Expected as More Canadian Oil Meets Tight Pipe Space
Deeply discounted prices for heavy crude from the heart of Alberta's oil sands look set to sink further, thanks to hundreds of thousands of barrels of new supply that will have difficulty finding space in crowded pipelines, traders say. It would be another hit for Canada's ailing oil sands producers, who have slashed millions in capital expenditures and been forced to lay off thousands of workers over the two-year downturn in oil prices. Until recently, pipeline space in Alberta has not been an issue as May wildfires took about half of the oil sands' production capacity offline.
Canada's Aboriginals tell Trudeau they can Block Pipelines
Canadian aboriginal groups and their allies said on Friday they have the power to block proposed oil pipelines on land where they have proven title, dismissing comments by Prime Minister Justin Trudeau who said no community has a veto. Trudeau told Reuters on Thursday that unanimous consent is not needed for the government to approve pipeline projects to bring Canadian oil to market, even as he pledged consultation with aboriginals and environmentalists who oppose projects. At the heart of the conflict are the rights of aboriginal people…
Latest Evacuations Threaten Oil Sands Restart
The sudden surge north of the massive wildfire burning in Canada's oil sands region has dealt a new setback to producers, triggering a second round of evacuations and threatening work camps north of Fort McMurray. With the the city of Fort McMurray off limits and fewer places to house workers needed to restart operations, production may be shut down for longer than companies and market analysts had anticipated. A shift in winds and hot temperatures sent the blaze roaring toward Suncor Energy and Syncrude Canada's mining and upgrading projects late Monday…
Cenovus Cuts Nearly 250 Workers
Cenovus Energy said it let go nearly 250 employees on Tuesday as part of a previously announced restructuring, a spokesman said, adding to the tens of thousands of energy industry workers laid off in Canada since oil prices crashed. The cuts at the oil and gas producer are part of the 440 layoffs outlined by Cenovus earlier this year, when it reported quarterly losses and said it would slash its dividend and 2016 capital budget. Spokesman Brett Harris said 190 contractors lost their jobs earlier this year and with Tuesday's cuts the bulk of the planned layoffs were now complete.
Oil Rises Towards $31 on Hopes of Deal
Oil rose on Tuesday to above $31 a barrel on hopes that OPEC and non-OPEC producers were inching closer to a deal to reduce output in the face of one of the biggest supply gluts in decades. The Organization of the Petroleum Exporting Countries is making renewed calls for rival producers to cut supply alongside its members, but Russia, seen as key to any deal, has so far refused to cooperate. Iraqi Oil Minister Adel Abdel Mahdi said on Tuesday he saw "some flexibility" for a deal, an idea has been repeatedly mooted and dismissed for over a year. Brent crude was up $1.02 at $31.52 a barrel by 11:05 a.m.
Hefty Maintenance Schedule Looms for Canada Oil Sands Producers
The move is seen temporarily curbing supply in the second and third quarters, which should lift crude prices in the region and give producers a respite from selling their barrels below cash costs. Among producers planning major work at their facilities, Suncor is planning the first five-yearly turnaround on its U2 upgrader, Cenovus has three turnarounds planned versus none last year and Canadian Natural has scheduled 30-35 days of maintenance deferred from 2015. Not all producers disclose the impact on output…
Oil Rout Deepens, U.S. Crude at Multi-Year Low
U.S. crude hits September 2003 low under $28. Oil futures extended their decline on Wednesday, with U.S. crude touching its lowest since 2003, as a global supply glut bumped up against bearish financial news that sparked deeper worries over demand. U.S. crude oil dropped more than 4 percent in early trading, falling to as low as $27.32 a barrel. It bounced back to trade down $1 at $27.46 as of 1239 GMT. The contract settled down 96 cents, or 3.26 percent, in the previous session. "You need the low price to slow down shale much faster," said Bjarne Schieldrop, chief commodities analyst with SEB in Oslo.
Suncor to buy Canadian Oil Sands
Canadian oil and gas producer Suncor Energy Inc said on Monday it had reached an agreement to buy Canadian Oil Sands Ltd after raising its all-stock offer, valuing the deal at about C$4.24 billion ($2.93 billion) excluding debt. The deal came days after Suncor's hostile bid for the company fell short of support from Canadian Oil Sands shareholders. Alberta oil sands producers have been struggling with tumbling global crude oil prices, which slid to their lowest levels since 2003 on Monday over worries of a global supply glut.
Bargain Hunters Swarm to Oil Equipment Auctions
In an auction room a few dozen potential bidders scan a picture of a used oil drilling rig projected on the wall while an auctioneer raises his voice to drum up enthusiasm. "If you came to this sale not looking for a rig you should be looking at it now," the auctioneer bellows into his microphone. Initial asking price on the rig - complete with water, mud and shale tanks - was C$150,000 ($107,650) and it eventually sold for C$52,500, a fraction of a cost of a new rig that can fetch between $7 million and $15 million.
Low Crude Prices Leave Many Canada Oil Sands Producers in the Red
U.S. crude's slide to $35 a barrel this week has left many Canadian oil sands producers selling their oil at a loss, with some analysts predicting even more pain in 2016. Alberta's oil sands hold the world's third-largest crude reserves but also have some of the highest breakeven costs globally because of energy-intensive production methods. Canadian heavy crude trades at a discount to U.S. crude because of quality and the cost of transportation from landlocked Alberta to U.S. markets.
Hurting Canadian Oil Producers Signal Further Cuts to Come
Canadian energy companies, especially those at higher cost oil sands producers, are signalling they will cut capital spending for a second straight year in 2016 as they adjust to a painful new reality of oil near $40 a barrel. Energy executives, coming off a bleak third-quarter earnings season and due to roll out capital budgets in coming weeks, were in a grim mood even before the United States last week rejected TransCanada Corp's proposed Keystone XL pipeline that would have been key in boosting exports of heavy oil from the landlocked oil sands.
