Cenovus Energy Posts Q1 Loss as Shipping Deadlock Drags
Cenovus Energy Inc posted a first-quarter loss on Wednesday, hurt in part by maxed-out pipelines that hampered efforts to move crude to the United States and weighed on prices of Canadian heavy oil. The differential between Western Canada Select (WCS) and U.S. crude hit $25 in the first quarter ended March 31, much higher than the usual discount.
Canadian Railways in 'catch-22' over Crude Shipments
Canadian railway operators see a lucrative opportunity to transport more crude oil to the United States as a rise in output force producers to find new routes to its southern neighbor. However, their need for long-term contracts and the pressure to move a surplus of grains in the country is making it hard to cash-in on the prospect.
Cenovus Energy: Transportation Bottlenecks Impact Production
Canada's Cenovus Energy Inc said on Thursday it was running oil sands production below capacity and stockpiling excess oil due to trouble with exporting through maxed-out pipelines to the United States. The company forecast first-quarter production to double from a year earlier, but blamed transportation bottlenecks for reduced prices of its crude, compared to U.S.
Price Rally Spells Fleeting Relief for Canadian Producers
Canadian heavy crude rallied to a two-month high relative to U.S. crude this week, offering some relief to oil producers in Alberta struggling with thin margins amid plentiful supply. The rally was likely to be short-lived, traders and analysts said, because output continues to grow without a corresponding increase in transportation capacity.
Alberta Crude Oil Leak Came from Inter Pipeline System
A crude oil leak in central Alberta's Strathcona County on Friday afternoon came from Inter Pipeline Ltd's Cold Lake regional pipeline system, the company said in a statement on Monday. Calgary-based Inter Pipeline has isolated a segment of the pipeline near its Strathcona Terminal in Edmonton for repairs…
Cenovus Mulls Restart of Two Oil Sands Projects
Canadian oil and gas producer Cenovus Energy Inc said on Thursday it is doing engineering and design work at two of its deferred oil sands projects in northern Alberta and it could potentially reactivate them in 2018 and 2019, respectively. The two projects, Foster Lake phase H and Narrows Lake phase A, would add up to 75,000 barrels per day of production.
Refiners Shun New Canadian Crude Blend
Enbridge Inc has approved a new stream of heavy Canadian crude for export on one of its major oil pipelines to the United States, according to four trading sources. The only problem? No one wants it. Canada produces more heavy than light crude because of its vast oil sands projects in northern Alberta. Space on the Enbridge system for heavy barrels is in short supply…
Cenovus Raising Budget, Resuming Christina Lake Expansion
Canadian oil producer Cenovus Energy Inc said on Thursday it planned to increase its 2017 capital budget by about 24 percent and will resume work on the expansion of its oil sands project in Christina Lake. The Calgary, Alberta-based company said it intended to invest between C$1.2 billion-C$1.4 billion ($1.06 billion), with a target of C$1.3 billion.
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…
Trump's Win Revives Keystone XL Discussion
Republican Donald Trump's victory in the U.S. presidential election cheered investors in Canadian energy producers eager to revive the stalled drive to approve the controversial Keystone XL pipeline, giving oil sands crude better access to U.S. markets. President Barack Obama denied a permit to TransCanada Corp's proposed cross-border Keystone XL pipeline last year.
Cenvous Energy Cuts E&P Budget Again
Cenovus Energy Inc cut its 2016 exploration and production budget again, as the Canadian oil producer looks to tackle a steep fall in oil prices that has eroded cash flows. The company, which reported a much bigger-than-expected loss on Thursday, cut the full-year exploration and production budget to C$715 million-C$805 million…
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…
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…
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…
Canada Crude-Grades steady as post-wildfires ramp-up speed questioned
Canadian cash crude differentials remained steady on Friday as market players questioned how fast crude volumes would come back online after wildfires slashed production in northern Alberta's oil sands region. Western Canada Select heavy blend crude for July delivery last traded at $12.25 per barrel below benchmark West Texas Intermediate (WTI) futures…
Oil Falls on Iran Policy, U.S. Rig Count
U.S. rig count steady for first time this year; Iran has no plan to freeze oil output, exports. Brent crude prices fell for a fourth consecutive session on Monday as investor focus returned to global supply, with Iran insisting on a rise in oil exports and U.S. drillers slowing the reduction in rigs. Global…
Canada: Oil Facilities Largely Okay, Restart a Challenge
The mass evacuation of residents from the wildfire-devastated Canadian oil town of Fort McMurray is likely to significantly delay the restart of production, even though energy facilities themselves have escaped major damage from the flames. The huge wildfire that entered its second week on Sunday has destroyed entire neighborhoods in the town…
Canadian Energy Companies Sell "Jewels" to Keep Oil Sands Afloat
Faced with record low prices for heavy crude, Canadian energy companies are sacrificing other parts of their business to keep higher-cost oil sands production going and safeguard the billions already invested in these multi-decade projects. Companies including Husky Energy Inc, MEG Energy Corp and Pengrowth…
Canadian Energy Sacrifice "jewels" to keep Oil Sands
Faced with record low prices for heavy crude, Canadian energy companies are sacrificing other parts of their business to keep higher-cost oil sands production going and safeguard the billions already invested in these multi-decade projects. Companies including Husky Energy Inc, MEG Energy Corp and Pengrowth…
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.
