Three proposals to expand pipeline capacity to move Western Canada's crude oil have been stalled for years by environmental and indigenous opposition in both Canada and the United States. Lately, the proposals have cleared several obstacles, but others remain. Canadian oil companies such as Canadian Natural Resources Ltd , Suncor Inc and Cenovus Energy say the projects are critical to lifting prices and ending government-ordered curtailments in Alberta. LINE 3 This Enbridge Inc project [Read more]
Court dismisses challenge to Trudeau government approval of Trans Mountain oil pipeline expansion
Canada's Federal Court of Appeal on Tuesday dismissed a challenge to the government of Prime Minister Justin Trudeau's approval of the Trans Mountain oil pipeline expansion, clearing some uncertainty over the project. The court said in a written decision that the government held "reasonable and meaningful" consultations with indigenous groups as required by law. The Honourable Seamus O'Regan, Minister of Natural Resources, today issued the following statement regarding the decision by the [Read more]
U.S. natgas futures edge up from near 4-year low on cooler forecast
U.S. natural gas futures on Tuesday edged up from a near four-year low on forecasts for slightly cooler weather in mid-February than earlier expected. Front-month gas futures for March delivery on the New York Mercantile Exchange rose 1.6 cents, or 0.9%, to $1.835 per million British thermal units (mmBtu) at 7:52 a.m. EST (1252 GMT). On Monday, the contract closed at its lowest since March 2016. That keeps the front-month in technically oversold territory for 11 of the past 12 sessions, [Read more]
Oil prices rebound from China virus slump amid gingerly recovery across markets
Oil prices rose on Tuesday, matching moves in other financial markets as investors regained calm after Monday's sharp sell-off on fears of the impact of the China coronavirus on demand for fuel sent crude to its lowest level in more than a year. U.S. West Texas Intermediate (WTI) crude was up 32 cents, or 0.6%, at $50.43 a barrel. Brent crude was at $54.66 a barrel by 0227 GMT, up 21 cents, or nearly 0.4%. Both WTI and Brent are currently down by more than 20% from this year's peak on Jan. [Read more]
Heavy discount narrows as inventory levels shrink
Canadian heavy crude's discount versus U.S. benchmark West Texas Intermediate (WTI) crude narrowed on Monday, the first day of the new monthly trading cycle. Alberta oil inventories have shrunk as rail movement increases, a Calgary industry source said. Anticipation of downtime for maintenance at oil production sites in March, the current delivery period being traded, also reduced the discount, the source said. Western Canada Select (WCS) heavy blend crude for March delivery in Hardisty, [Read more]
Enbridge Line 3 oil pipeline clears hurdle, Minnesota regulator rules environment statement adequate
A Minnesota regulator ruled on Monday that a revised environmental impact statement for Enbridge Inc’s Line 3 oil pipeline replacement is adequate, helping to clear a significant hurdle for the long-delayed project. The Minnesota Public Utilities Commission voted 3-1 to find the revised statement from the state's Department of Commerce adequate. It was to move on Monday afternoon to consider reissuing a certificate of need and route permit for the project. Enbridge shares jumped 1.5%, [Read more]
U.S. drillers cut oil rigs for first week in three
U.S. energy firms reduced the number of oil rigs operating for the first time in three weeks as producers follow through on plans to slash spending on new drilling for a second consecutive year in 2020. Drillers cut one oil rig in the week to Jan. 31, bringing the total count down to 675, energy services firm Baker Hughes Co said in its closely followed report on Friday. In the same week a year ago, there were 847 active rigs. In January, the rig count declined for the 13th time in the [Read more]
Prospects advance for Canada’s oil pipelines, but hurdles remain
Prospects for expanding pipelines to move Canadian oil to markets have brightened, but plenty of hurdles remain for the Canadian sector, which has struggled for years with low prices and a glut in storage due to long project delays. Two of three major proposals - TC Energy Corp's Keystone XL and the Canadian government-owned Trans Mountain - have cleared obstacles to bring them a step closer to fruition. The third, Enbridge Inc's Line 3, faces a new round of hearings before regulators in [Read more]
Oil falls amid spread of Wuhan virus, rising crude inventories
Oil prices fell on Thursday, resuming their declines after a brief pause earlier this week, as alarm spread over the economic impact of the Wuhan virus in China, while a bigger-than-expected increase in U.S. crude stocks added to the negative tone. U.S. crude was down 51 cents, or 1%, at $52.82 a barrel, after dropping 0.3% in the previous session. Brent was down 62 cents, or 1%, at $59.19 a barrel by 0623 GMT, having risen 0.5% on Wednesday. Prices had steadied in recent days, after [Read more]
Column: LNG, the “champagne” of fuels, should enjoy its beer moment
It's been an extremely weak start to the new decade for liquefied natural gas (LNG) with spot prices in Asia falling to more than 10-year lows, but it's not all doom and gloom for an industry that sees itself as part of the solution to climate change. The average spot price for LNG delivered to north Asia for March dropped to $4 per million British thermal units in the week to Jan. 24, with some cargoes trading at just $3.95. At below $4 per mmBtu, the spot price is at the weakest level in [Read more]