Why Canada is the Next Frontier for Shale Oil
The revolution in U.S. shale oil has battered Canada's energy industry in recent years, ending two decades of rapid expansion and job creation in the nation's vast oil sands. Now Canada is looking to its own shale fields to repair the economic damage. Canadian producers and global oil majors are increasingly exploring the Duvernay and Montney formations, which they say could rival the most prolific U.S. shale fields. Canada is the first country outside the United States to see large-scale development of shale resources, which already account for 8 percent of total Canadian oil output.
Exxon Mobil profit disappoints Wall Street, Chevron shines
Exxon Mobil Corp posted a rare earnings miss on Friday, the only international oil producer to do so last quarter, as production slipped in its African and Canadian operations. Exxon's results were overshadowed by rival Chevron Corp , which easily exceeded Wall Street's expectations with a double-digit percentage increase in production. Royal Dutch Shell Plc, Total SA and Statoil ASA this week delivered profits that topped expectations also. Chevron for years has downplayed profits to spend heavily on megaprojects in Australia, the U.S. Gulf of Mexico and elsewhere.
From Engineer to Sommelier: Calgary's Laid-off Oil Workers try Plan B
Alejandro Rodriguez wants to be a sommelier. His previous experience: 20 years as an oil reservoir engineer. The 42-year-old needed to consider a career plan B after ARC Resources Ltd laid him off in January, adding to a growing number of people in the Canadian city of Calgary, Alberta who no longer have a place in its once-vibrant oil and gas industry. Once lured by high pay and a multitude of opportunities, many job seekers in Calgary often have one mission these days: get out of the industry and never return. "I see this as an opportunity to go for the passions you may have.
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, according to Shorcan Energy brokers. That was 15 cents wider than Thursday's settle of $12.10 per barrel below WTI. Light synthetic crude from the oil sands for July delivery strengthened slightly to $3.30 per barrel above benchmark WTI…
New Colombian Crude Whets Appetite of US Refiners
The United States has started to import small batches of Colombia's Puerto Bahia heavy crude, an unusual development that underscores at least a temporary shift in the type of heavy oil flowing into U.S. refineries. Typically, U.S. refineries have received their heavy oil from Canada, Venezuela and Mexico. But shipments of those grades have been limited by Canada wildfires, and slipping output in Mexico and Venezuela. The first shipment of the Colombian heavy crude arrived at Lake Charles…
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…
Spectre of Gasoline, Diesel Glut Reverses Oil's Gains
A growing overhang of gasoline and diesel fuelled a sharp sell-off in oil futures on Monday that reversed a recent rally over the wildfires in the heart of Canada's oil sands region, traders and analysts said. The sell-off came amid warnings that supplies could outpace global demand even during the peak summer driving season that traditionally kicks in at the end of May. While crude oil supplies have significantly tightened in recent weeks due to outages linked to unrest in Libya, militant attacks in Nigeria, the fire in Canada and gradually slowing U.S.
Canada Wildfire Explodes in Size, Approaches Oil Sands Project
A raging Canadian wildfire grew explosively on Saturday as hot, dry winds pushed the blaze across the energy heartland of Alberta and threatened to burn close to an oil sands project. The fire that has already prompted the evacuation of all 88,000 people who lived in the city of Fort McMurray was set to double in size on Saturday, the seventh day of what is expected to be the costliest natural disaster in Canada's history. Provincial officials praised evacuees for their patience and…
Hits to Americas Oil Output Show Global Glut Not Invincible
Wildfires in Canada. Pipeline sabotage in Colombia. Instability in Venezuela. U.S. frackers at a standstill. Drops in oil output are happening so fast that it looks as if the Americas alone could resolve global oversupply. The 60 percent price slide of the last 23 months has been consistently pegged to one problem: current global supply exceeds demand by 1.5 million barrels per day (bpd). But oversupply could evaporate quite quickly when seen through the prism of current disruptions and declines in the Western Hemisphere.
Oil Rallies on Canada Fire, Libya Violence
Fort McMurray evacuees told to head to oil sand camps; fighting in Libya escalates, disrupts supplies. A huge wildfire near Canada's oil sands region and escalating tensions in Libya stoked concern among investors over a near-term supply shortage, driving crude prices up for the first time in a week on Thursday. Brent crude futures rose $1.11 on the day to $45.73 a barrel by 1105 GMT, while U.S. West Texas Intermediate (WTI) futures gained $1.36 to $45.14. "The difference today compared with a year ago is the market is starting to price in supply disruptions…
Oil Turns Lower after US Crude Build
A bigger-than-expected build in U.S. crude inventories to fresh record highs pushed oil markets lower on Wednesday after an early rally over concerns about production cuts in Canada's oil sands region due to a wildfire. U.S. crude stocks, which have been setting record highs since January, grew 2.8 million barrels last week, government data showed, about a million barrels more than analysts' expectations. Gasoline stocks also posted a surprise increase. The data overshadowed concerns over evacuations in the Canadian province of Alberta…
Suncor extends bid for Canadian Oil Sands until Jan. 27
Suncor Energy Inc , Canada's largest oil producer, said on Friday it had extended its hostile bid for Canadian Oil Sands Ltd until Jan. 27. Suncor needs to secure at least two-thirds support from shareholders to succeed in the bid, which comes against a backdrop of tumbling global crude oil prices that slid to a 12-year low this week. Many producers in the oil sands region of northern Alberta are struggling to cover cash costs. In a statement on Friday, Canadian Oil Sands said it wanted its shareholders to take no action on Suncor's bid, reiterating its view that it is undervalued by the bid.
Operational Excellence Becomes Oil Industry Watchword (again)
Cost-cutting is set to remain the main focus for the oil industry for at least the next two years as petroleum producers adjust to an environment of much lower prices. If the boom was characterised by an emphasis on ambitious and complex engineering and technology projects, the downturn has brought a renewed focus on simplification and efficiency. It marks a return to what was called "operational excellence" during the long years of low oil prices in the 1990s. Operational excellence is about more than just short-term expenditure reduction.
MEG Latest to Shut Oil Sands Project on Alberta Fire Threat
MEG Energy Inc said on Tuesday it was suspending operations at its 80,000 barrel per day Christina Lake oil sands project and evacuated non-essential staff as wildfires rage through northeastern Alberta. MEG said in a statement that there was as yet no safety risk from the forest fires, but it has halted work on a planned maintenance shutdown at its project site, the latest of several oil producers in the region to move staff away from the potential danger. "As a precautionary measure…
Canada's Oil Sands Boomtown Feels the Chill
The boomtown in the heart of Canada's oil sands region is getting nervous. Fort McMurray, surrounded by the boreal forest of northern Canada, has long drawn thousands with jobs that paid six-figure salaries to a region that produces more crude than anywhere else in the Western Hemisphere. But a slide in oil prices since June has fueled a sense of unease in the community of nearly 73,000 which for over a decade has rarely known anything but the good times. So far, it has been spared…
Nebraska Court Hears Questions about Keystone XL Pipeline Plan
Nebraska's Supreme Court heard arguments on Friday about whether Governor Dave Heineman acted properly when he blessed a route for the Keystone XL oil pipeline, and the court's decision could weigh on the controversial project. A lawyer for landowners who may be in the pipeline's path hoped to persuade the seven-member panel that Heineman overreached and that a decision on the route should be left to an independent state agency. The 30-minute hearing played out in the court's somber wood-paneled chamber. Keystone opponents who watched the proceedings from an adjacent room, were not so subdued.
Strata Oil Engages Lorrnel Consultants
Strata Oil & Gas Inc. announced today that it has engaged Lorrnel Consultants to assist in the planning and permitting of a drilling program on Strata's 100%-owned Cadotte/Cadotte-West lease blocks in the Peace River region of Alberta. Lorrnel Consultants will be assisting Strata in submitting an Oil Sands Exploration plan ("OSE") to the Crown prior to the coming winter drilling season, including providing mapping services, third-party consultations, environmental services and project management services.
