Throughout 2021, it was a news-worthy year for both the Canadian and international oil and gas sector, most importantly as it has recovered from historic price crashes the onset of COVID-19 to a bounce-back in prices with a strong demand for oil and gas services and products. As vaccine rollout has helped the fight against the pandemic, people were able to see life get back to a sense of normalcy, therefore, they needed oil and gas to jettison them around the world, and within their countries.
We at BOE Report have been your trusted news source and daily steward of all things oil and gas. In saying that, we have compiled the top 10 stories from 2021, and the status of each topic. We hope you enjoy our year in review of most-read stories.
Calgary’s recently-elected mayor, Jyoti Gondek, declared a ‘climate emergency’ in Calgary, saying the city has had ‘years’ to declare a climate emergency, and now is the time ‘to get serious and declare [a climate emergency]’. She also mentioned Calgary became fixated on an end product of energy production, and that Calgary needs to ‘move past’ that fixation. Her comments ruffled feathers within the city and province, and while there is an energy transition happening within the industry, the reality is oil and gas products will still play a large role in our lives for decades to come, and will also be a helpful aid in the energy transition.
The Brookfield Infrastructure Partners acquisition of Inter Pipeline in the fall has been one of the bigger news stories to follow in the industry this year. The $4 billion Heartland Petrochemical Complex, Inter’s first petrochemical project and its largest ever capital investment, was caught in the crosshairs. Meant to unlock new markets, it went $500 million over budget and put Inter Pipeline in a vulnerable position.
The ongoing Line 5 pipeline saga has been brewing for a long time, with both Enbridge and the state of Michigan and its Governor, Gretchen Whitmer, digging in their respective heels. The pipeline delivers 540,000 barrels a day to Quebec, Ontario, midwestern states, and more than half the propane consumed in Michigan. Citing environmental concerns, Whitmer had ordered the pipeline to close, with Enbridge not complying. This battle will continue on, with large ramifications to come.
In talking about the next energy boom, columnist Terry Etam says the next one will share similarities to previous booms, and will also have differences.
“What will be different in the industry’s recovery is that the legendary resilience and adaptability will surface in entirely new ways. We are seeing it already, which is remarkable because the change of focus and direction for a multi-trillion dollar industry in a few short years is an incredible accomplishment.”
“The hydrocarbon industry has survived many booms and busts, and that resilience is in the DNA. So don’t get too upset by media madness and false prophets and paid sh*t-disturbing commenters. Better days are ahead.”
Early in 2021, ARC Resources and Seven Generations Energy announced a strategic combination of the two premier Montney producers. Their combined production is expected to total over 340,000 boe/d. The transaction, valued at $8.1 billion, aims to create a combined company that enhances ARC’s and Seven Generation’s existing commodity and geographic diversification and makes them Canada’s largest condensate producer, third-largest natural gas producer, and sixth-largest upstream energy company.
Mr. Etam returns to the top 10, with a column focusing on Norway’s hydrocarbon consumption and the stark reality of energy transition. While Norway gets a shining gold star narrative as a green country, Terry asks us to look at the whole picture, and that the challenge of reducing hydrocarbon consumption in any significant way is daunting for anyone and any country.
Columnist Maureen McCall asked the question of what has been the biggest crisis in your lifetime? There is an energy crisis storm brewing that will impact Canada, North America, and the world. Maureen had a conversation with Dan McTeague, President of Canadians for Affordable Energy, and how the crisis will affect economics and humans moving.
As mentioned earlier, the controversial Line 5 pipeline saga has been dominating headlines. This is a hard situation for all parties involved, and will be ongoing well into 2022, and is hard to predict an outcome.
Near the end of 2020, the Alberta government put an end to production curtailments in Alberta, and Canada’s oil sands production hit record high numbers. Canada’s the world’s fourth-largest oil producer, with data from the Alberta Energy Regulator, stated November 2020 oil sands production hit a record 3.16 million barrels a day. Producers are expected to drill 27% more wells in 2022, as the price of oil has rebounded from turbulent times, and pipeline projects continue to advance. The oil and gas sector, well-known for its resiliency in turbulent price markets, is moving forward in a strong position.
Finishing off our top 10, Mr. Etam is back with another must-read column, this time on the hiring of Steven Guilbeault being in charge of Canada’s climate portfolio, and a head-scratching decision by Justin Trudeau.
“Putting Guilbeault on the climate emergency file makes sense; in order to lead the fight against zombies, one must believe in them. Guilbeault’s Greenpeace indoctrination checks that box like a nuclear warhead; it makes him the perfect person to lead the crusade. Greenpeace training involves bringing down things that don’t meet their approval, then offering academic doctrine as the solution. There is no doubt he will excel at it.”
On its face, this is a peculiar hire and will be interesting to watch moving forward.
Thank you, BOE Report readers, for engaging with the stories we publish, and for your continued support. We are excited for 2022!