Iranian crude exports have dropped so far in June to 300,000 barrels per day (bpd) or less after the United States tightened the screw on Tehran’s main source of income, industry sources said and tanker data showed, deepening global supply losses. The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers. Aiming to cut Iran’s sales to zero, Washington in May ended sanctions waivers to importers of Iranian [Read more]
IEA concerned about Middle East tensions, stands ready to act
The International Energy Agency (IEA) is very concerned about the impact that tensions in the Middle East may have on global energy security and will act if there is any physical disruption to supplies, its executive director said on Monday. Oil prices rose on Monday, extending large gains last week that were prompted by tensions between the United States and Iran, although concerns about the possibility of weakening demand kept a lid on gains. Strong growth in the price of U.S. shale oil [Read more]
U.S. drillers add oil rigs for first week in three
U.S. energy firms increased the number of oil rigs operating for the first time in the past three weeks as U.S. crude futures soared around 10% this week. Big energy price declines over the prior couple of months, however, prompted one analyst to cut rig count forecasts for 2019 and 2020. Companies added one oil rig in the week to June 21, bringing the total count to 789, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. That compares [Read more]
Oil industry dismayed as contentious energy bills become law
Two pieces of legislation opposed by Canada's oil and gas industry that fulfil Liberal government promises to protect the environment will become law on Friday. Bill C-69, which will overhaul environmental assessments for major resource and transportation projects like oil pipelines, and Bill C-48, which bans oil tankers from British Columbia's northern coast, were passed by the Senate on Thursday evening. That vote followed approval by the House of Commons last week. The two bills are [Read more]
Canada’s Conservative leader unveils climate plan without carbon pricing
Canada's Conservative Party leader unveiled his long-awaited climate and environmental plan on Wednesday that would eliminate the current federal carbon pricing program and focus on promoting green technologies. For more than a year, Conservative chief Andrew Scheer, who is currently leading in the polls, has been promising to deliver a climate plan that would replace Prime Minister Justin Trudeau's so-called "carbon tax." "More and more Canadians are starting to realize that paying a tax [Read more]
Canada Finance Minister says permitting work on Trans Mountain oil pipeline underway
Work to obtain building permits for the Trans Mountain oil pipeline started on Wednesday, Canadian Finance Minister Bill Morneau said, a day after the federal government approved the contentious expansion project despite widespread opposition.Once complete, the project will triple the capacity of the Trans Mountain pipeline, which carries crude from Alberta's oil sands to British Columbia's Pacific Coast.Supporters say it is a vital conduit to help Canadian oil reach higher-priced [Read more]
Trans Mountain oil pipeline expansion may start in September
CALGARY, Alberta/WINNIPEG, Manitoba, June 19 (Reuters) - Construction on expanding the Trans Mountain oil pipeline could begin in September, assuming the next regulatory steps go smoothly, the project's chief executive said on Wednesday. The $7.4 billion project was stalled a year ago after a Canadian court ruled the federal government, which also owns Trans Mountain, failed to adequately consult indigenous groups. Prime Minister Justin Trudeau on Tuesday reapproved the expansion, cheering [Read more]
Cenovus Energy: Credit Suisse says debt reduction pace above expectations
** Credit Suisse says Canadian integrated oil company Cenovus Energy Inc's debt reduction pace exceeding expectations** On Tuesday, CVE announced it intends to repurchase $748 mln of its debt as a result of successful cash tender offers for certain of its outstanding notes ** Brokerage says the debt pay down amount of $748 mln is ~50% higher than the original tender offer of $500 mln** "Increased pace of debt repayment is clear reflection of CVE's confidence in its own ability [Read more]
Spain’s Repsol cuts 30% of Canadian staff in global restructuring
Spanish energy company Repsol SA is cutting about 30% of its Canadian workforce as part of global restructuring, the company said in an emailed statement on Tuesday. Repsol joins a string of large international energy companies that have either reduced exposure to Canada or exited the country's oil sands sector to focus investment elsewhere.Delays in building new export pipelines has slowed Canadian oil and gas development and capped growth in output in the world's fourth-largest [Read more]
Trudeau approves expansion of crude oil pipeline, says legal challenges likely
Trudeau, as expected, approved the proposal to expand the crude oil pipeline Canada bought last year. Construction on the expansion of the Trans Mountain pipeline is planned to start this year, Prime Minister Justin Trudeau told a news conference. A senior government official, speaking on condition of anonymity, earlier said Ottawa expected legal challenges against the approval. The project would triple Trans Mountain's capacity to carry 890,000 barrels per day from Alberta's oil sands to [Read more]