The merger of Canadian oil companies Cenovus Energy and Husky Energy will create a formidable refining presence in the Midwestern United States, but it comes at a time when weak demand has left that market oversupplied, squeezing margins. Pandemic travel restrictions have hurt fuel demand and spurred companies to cut costs or merge. Since the pandemic started, at least four different crude oil refineries have been idled or closed in North America. With infections surging again, consumption of [Read more]
U.S. natgas hits near 2-yr high on higher demand view, storm threat
U.S. natural gas futures climbed to their highest in nearly two years on Monday on forecasts for higher heating demand and concerns that Tropical Storm Zeta aiming at the U.S. Gulf Coast could disrupt production. Front-month gas futures rose 5.3 cents, or 1.8%, to settle at $3.024 per million British thermal units (mmBtu). Prices earlier rose to their highest since Jan. 25, 2019 at $3.080 per mmBtu. "We are seeing some cold weather temperatures that will be coming across in the next week, [Read more]
Cenovus-Husky deal creates new Canadian oil major, stokes hunger for deals
Cenovus Energy's acquisition of Husky Energy creates a new Canadian-owned major oil producer and lends the long-struggling oil patch greater stability during its biggest crisis in decades, with investors betting on further deals. The C$3.8 billion ($2.9 billion) combination announced Sunday, the largest Canadian oil and gas deal in nearly four years based on enterprise value, may pressure peers to get bigger or sell. "You will continue to see stock-based deals with skinny premiums as [Read more]
Oil falls as COVID-19 case surge stokes demand concerns
Oil extended last week's losses on Monday, falling nearly 2% as a surge in COVID-19 infections in the United States and Europe prompted concern over crude demand, while the prospect of increased supply also hit sentiment. U.S. West Texas Intermediate (WTI) dropped 99 cents, or 2.5%, to $38.73, having fallen more than a dollar shortly after the start of trading. Brent crude was down 98 cents, or 2.35%, at $40.66. Brent fell 2.7% last week and WTI dropped 2.5%. The United States [Read more]
Imperial Oil overall winner from Canada removing curtailments
Credit Suisse says Alberta's move to end oil production curtailments as of December would allow producers in the country to operate projects at higher rates. Suisse expects integrated companies Imperial Oil and Suncor to benefit from the removal of curtailment. Both Imperial and Suncor were the most vocal critics of production curtailments; says Imperial is an overall winner on this, with their shares up nearly 2%. Additionally, the heavy barrels Imperial Oil produces would be tailwind [Read more]
U.S. oil and gas rigs rise to highest since May
U.S. energy firms this week added oil and natural gas rigs for a sixth week in a row for the first time since June 2018, with the industry expecting more momentum in drillers' return to the wellpad as crude prices steady around $40 a barrel. The oil and gas rig count, an early indicator of future output, rose five to 287 in the week to Oct. 23, its highest since May, energy services firm Baker Hughes Co said in its closely followed report on Friday. The total rig count fell to a record low [Read more]
Alberta to end monthly oil production curbs in December
Alberta will lift curbs on crude oil production at the start of December, allowing producers to use pipeline capacities and create jobs, the region's energy minister Sonya Savage said on Friday. The ruling comes a month ahead of the scheduled expiration of the restriction and at a time when the region's economy is reeling under the impact of the coronavirus pandemic. Nearly 16% of the crude production in the province, which is home to the world's third-largest oil reserves, is currently [Read more]
Trump, Biden clash over climate, oil industry in final debate
Republican President Donald Trump and Democratic challenger Joe Biden clashed over the country's response to climate change in their final presidential debate on Thursday, which included a stark disagreement over the future of the oil industry. The candidates were asked at their matchup in Nashville, Tennessee, what they would do to combat climate change - the first time in a presidential debate they were not questioned on whether they believed in it or not. "I do love the environment," [Read more]
U.S. natgas futures ease on forecasts for less demand in November
U.S. natural gas futures eased on Friday on forecasts for less demand in early November when expected gas price increases will cause power generators to burn more coal and less gas to produce electricity. That decline came despite the continued rise in liquefied natural gas (LNG) exports and a slowdown in output, which boosted prices to a 20-month high earlier this week. Front-month gas futures fell 3.2 cents, or 1.1%, to $2.975 per million British thermal units (mmBtu) at 8:41 a.m. EDT [Read more]
As popularity slides, Alberta’s Kenney has oil pipeline riding on U.S. vote
The premier of Alberta is losing popularity as the pandemic deepens its economic woes, highlighting the big pipeline bet that Jason Kenney has riding on the U.S. election. Kenney said in March that Alberta would invest C$1.5 billion ($1.14 billion) in TC Energy Corp's Keystone XL (KXL) oil pipeline and back the company's C$6-billion credit facility. The Alberta-to-Nebraska pipeline would widen the province's often-constricted export channels and boost prices, but TC has failed for more [Read more]