Canada's oil producers need to set clear targets to fight climate change to continue to attract global capital, Canadian Prime Minister Justin Trudeau said on Wednesday, as the country's carbon-intensive oil sands industry faces heightened environmental scrutiny from investors. The comments come as Japan's biggest bank by assets said it would restrict transactions involving oil sands, while Norway's $1 trillion wealth fund blacklisted four of the industry's biggest companies. "We've seen [Read more]
Oil rises on second wave outbreak fears, rise in U.S. inventories
Oil prices rose on Wednesday on worries about a possible second wave of coronavirus cases in countries starting to ease lockdowns, while industry data showed a rise in U.S. crude inventories. The concerns overshadowed a further call by Saudi Arabia for larger production cuts to balance the market following a virus-induced demand slump, after OPEC's biggest producer said earlier this week it planned to add to cut output again. U.S. crude was up 28 cents, or 1.5%, at $26.07 a barrel, after [Read more]
World’s largest wealth fund blacklists four Canadian firms for emissions
Norway's $1 trillion sovereign fund said on Wednesday it had excluded four Canadian oil and gas companies from its portfolio for producing excessive greenhouse gas emissions, its first use of that reason to blacklist firms. Canadian Natural Resources Ltd , Cenovus Energy Inc , Suncor Energy Inc , and Imperial Oil Ltd were excluded due to "unacceptable greenhouse gas emissions", Norges Bank Investment Management (NBIM) said. The firms did not respond to requests for comment after market [Read more]
As Canadian oil sands site fights infections, some want fewer fly-in workers
A coronavirus outbreak at a Canadian oil sands site has spread across five provinces and sparked calls to limit the use of fly-in workers in the remote locations. Any restrictions would upend a labor model that the high-cost industry depends on. Projects that use fly-in workers represent more than half of the region's crude production capacity. There are 106 known infections associated with Kearl, Imperial Oil's mine near Fort McMurray, Alberta, according to Alberta Health Services. Cases [Read more]
Major insurers increase cover for Trans Mountain oil pipeline
Major insurers Zurich , Chubb increased their insurance cover for a Canadian oil sands pipeline over the last year, Canadian regulatory filings show. The Trans Mountain pipeline, which ships types of crude oil and refined products to British Columbia from Canada’s main oil-producing province of Alberta, is owned by the Canadian government and has become a focus for environmental and indigenous groups who want a planned expansion of the pipeline stopped. The government bought the pipeline [Read more]
Oil prices climb as Saudi Arabia pledges further production cut
Oil futures rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain the glut in the global market that has grown as the coronavirus pandemic crushed fuel demand. U.S. West Texas Intermediate (WTI) crude futures were up 2.8%, or 70 cents, at $26.11. Brent crude futures climbed to a high of $30.11 a barrel and were up 0.8%, or 24 cents, at $29.87 at 0206 GMT, reversing some of the previous session's losses. Saudi Arabia said [Read more]
Montana judge upholds ruling that canceled Keystone XL pipeline permit
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]