A federal judge in Montana on Monday upheld his ruling last month that canceled an environmental permit for the long-delayed Keystone XL oil pipeline and threatened other oil and natural gas pipeline projects with delays. Chief U.S. District Judge Brian Morris denied a request by the U.S. Army Corps of Engineers to narrow his April 15 ruling that canceled the so-called Nationwide Permit 12. The permit allows dredging work on pipelines across water bodies. Morris said that the Army Corps [Read more]
Heavy discount hits new low on production cuts
Canadian heavy crude's discount versus the U.S. benchmark West Texas Intermediate (WTI) narrowed on Monday to an 11-year low. Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $3 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's settle of $3.45 under. The intraday price is the lowest recorded by NE2 in data that goes back to 2009. Canada, the world's fourth-largest oil producer, has shut in 644,000 barrels per day, [Read more]
Canada to create bridge financing for big companies, including airlines and energy
Canada on Monday said it would create a bridge financing facility for large employers including in the airline and energy sectors that need help to get through the economic downturn caused by the coronavirus. The bridge lending facility will be for all companies, except those in the financial sector, with an annual revenue of about C$300 million ($215 million) seeking financing of about C$60 million or more that have "significant operations or workforce in Canada." "This support will not [Read more]
Long-suffering Canadian oilpatch faces ‘biggest existential crisis’ yet
Canada's oil patch has endured five years of existential threats that have pruned weaker companies, but now its strongest firms are trying to navigate the coronavirus pandemic, which has set off the worst crisis in the oil industry in 40 years. Economic shutdowns have ground travel to a halt, cutting fuel demand by roughly 30% worldwide. With consumption down, oil producers around the globe cut production sharply. Canada, the fourth-largest oil producer, has shut in 644,000 barrels per [Read more]
Saudi Arabia to cut June oil output by an extra 1 mln bpd
Saudi Arabia has directed national oil company Aramco to cut its crude oil production for June by an extra voluntary amount of 1 million barrels per day, on top of a reduction already committed by the kingdom under the OPEC+ cut deal, a Saudi energy ministry official said on Monday. "This brings the total production cut that will be carried out by the Kingdom, to around 4.8 million barrels per day, from the April production level," the official said. "Therefore, the Kingdom's production [Read more]
Debt-stricken Chesapeake Energy to advance incentive executive pay
Chesapeake Energy Corp said it would prepay a total of $25 million in incentive compensation to 21 top executives to ensure they are motivated, even as it prepares to file for bankruptcy protection to tackle its nearly $9 billion debt pile. The Oklahoma City-based company, co-founded by late wildcatter and outspoken natural gas proponent Aubrey McClendon, has been struggling with an unprecedented rout in oil and gas prices, as the coronavirus-driven economic downturn saps energy demand. [Read more]
Heavy discount narrows to 11-year low on production cuts
Canadian heavy crude's discount versus the U.S. benchmark West Texas Intermediate (WTI) narrowed on Friday to an 11-year low. Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $3.50 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday's settle of $5.25 under. The intraday price is the lowest level recorded by NE2 in data that goes back to 2009. Supply cuts by Canadian producers are estimated by Canadian Natural Resources [Read more]
U.S. drillers cut oil & gas rigs to historic low
The number of operating oil and natural gas rigs fell to an all-time low - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand. The rig count, an early indicator of future output, fell by 34 to a record low of 374 in the week to May 8, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. The prior all-time low was 404 rigs in May 2016. Fuel demand has declined [Read more]
Three Enbridge pipelines shut after Kentucky natgas line fire
Three of Enbridge's pipelines were shut following a fire on the company's Line 10 segment of its Texas Eastern Natural Gas System, in Fleming County, Kentucky on May 4, the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) said on Friday. The company said on Thursday there was no estimated timeline to return its Line 10 to service. The PHMSA has deployed an investigator to the site of the incident, a PHMSA spokesperson said. No injuries were reported in the fire, which [Read more]
Oil rises as coronavirus curbs ease, setting stage for demand boost
Oil prices gained on Friday as more countries began relaxing restrictions put in place to halt the coronavirus pandemic, raising hopes that demand for crude and its products will start to pick up. U.S. oil gained 45 cents, or 1.9%, to $25.37 a barrel, after a decline of nearly 2% in the previous session. Brent crude was up by 42 cents, or 1.4%, at $29.88 a barrel by 0447 GMT, having fallen nearly 1% on Thursday. Both contracts are heading for a second week of gains after the lows of [Read more]