Enbridge Inc said on Monday it received federal permits for its Line 3 crude pipeline replacement project from the U.S. Army Corps of Engineers, moving closer to building the pipeline in the United States after years of delay. Line 3, which ships crude from Alberta to U.S. Midwest refiners, currently carries less oil than was designed for because of age and corrosion. Replacing the line, built in the 1960s, would allow Calgary-based Enbridge to roughly double its capacity to 760,000 barrels [Read more]
U.S. oil industry group pledges to fight possible Biden fracking limits
If U.S. President-elect Joe Biden tries to restrict development of oil and gas drilling on federal lands, the American Petroleum Institute (API) will use "every tool at its disposal" including a lawsuit against the federal government, chief executive Mike Sommers said in an interview with Reuters on Monday. Biden has said he supports a ban on new gas and oil permits — including fracking — on federal lands. Fracking, or hydraulic fracturing, is a drilling technology that has allowed the [Read more]
Oil prices extend gains on COVID vaccine hopes
Oil prices extended their gains on Monday as traders were optimistic about a recovery in crude demand thanks to successful coronavirus vaccine trials, but price gains were contained by renewed lockdowns in several countries. Sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. U.S. West Texas Intermediate crude gained 34 cents, or 0.8%, to $42.75 a [Read more]
Pipe dreams leave U.S. energy firms caught in climate trap
In remote northern Michigan a propane shortage in early 2014 caused prices to nearly double, squeezing about half of the families there who rely on fossil fuel to heat their homes. Glenda Bowler remembers her son fitting a wood stove at his restaurant as an alternative to propane, which reaches Michigan's Upper Peninsula via a 645 mile (1038 km) pipeline. "Everybody's thermostats got turned down, and you turned to supplemental, like wood or electric to help. I'm old, so I can't go cut [Read more]
U.S. oil & gas rig count falls for first week in 10
U.S. energy firms cut the number of oil and natural gas rigs operating for the first time in 10 weeks even as producers return to the wellpad with crude prices mostly trading over $40 a barrel since mid June. The U.S. oil and gas rig count, an early indicator of future output, fell by two to 310 in the week to Nov. 20, according to data on Friday from energy services firm Baker Hughes Co . The total rig count fell to a record low of 244 during the week ended Aug. 14, while oil rigs alone [Read more]
Imperial Oil to boost spending, slightly raise output amid volatile recovery
Canada's Imperial Oil, one of the country's biggest crude producers and refiners, said on Thursday it would raise capital spending and production next year as a volatile recovery of energy demand continues. Chief Executive Brad Corson said at the company’s virtual investor day presentation that a recovery in global energy demand looked to be “highly uncertain” and dependent on the spread of COVID-19. Pandemic travel restrictions have crushed fuel demand, depressing oil prices, and forcing [Read more]
What is happening with the Keystone XL oil pipeline?
TC Energy Corp says it is continuing to advance its Keystone XL (KXL) oil pipeline, the $9 billion project that would move oil from the province of Alberta to Nebraska. Most recently, a Canadian indigenous group said it would invest C$1 billion ($764.35 million) in the project, which has been in the works for 12 years. That surprised some, as KXL has been slowed by legal issues in the United States, and faces a potential fatal blow next year when President-elect Joseph Biden takes office, [Read more]
Oil up on hopes for delay to OPEC+ supply increase, vaccine
Oil prices firmed on Wednesday on hopes OPEC and its allies will delay a planned increase in oil output and after Pfizer said its COVID-19 vaccine was more effective than previously reported. U.S. West Texas Intermediate crude gained 51 cents, or 1.22%, to $41.87. Brent crude rose 58 cents, or 1.28%, to $44.36 a barrel. Both contracts jumped by about $1 after Pfizer Inc said on Wednesday final results from the late-stage trial of its vaccine showed it was 95% effective. Last week, it had put [Read more]
Indigenous group to invest up to C$1 bln in TC Energy’s Keystone project
TC Energy said on Tuesday indigenous group Natural Law Energy will make an equity investment of up to C$1 billion ($763.77 million) in its controversial Keystone XL pipeline project. The Keystone XL pipeline, which would run from the Canadian energy-producing province of Alberta to Nebraska, has been delayed for more than a decade due to opposition from landowners, environmental groups and tribes. The first phase of the transaction with NLE, created as a coalition of First Nations in [Read more]
Oil prices jump on hopes OPEC+ maintains supply curbs
Oil prices jumped in early Asian trade on Monday, recouping some losses from the previous session as hopes that OPEC+ will continue to curb output offset concerns of weaker fuel demand amid rising COVID-19 cases and higher production from Libya. While U.S. West Texas Intermediate crude for December was at $41.36 a barrel, up $1.25, or 3.22%. Brent crude futures for January rose $1.31 cents, or 3.07%, to $44.02 a barrel. Both contracts gained more than 8% last week on hopes of a COVID-19 [Read more]