Canada's oil producers are cutting their capital spending for 2019 due to volatility in Canadian crude prices and forced production cuts in the province of Alberta. Global crude prices have also been under pressure as markets worry about a supply glut and an economic slowdown.Last month, Alberta Premier Rachel Notley said the Western Canadian province would mandate temporary oil output cuts of about 325,000 barrels per day to deal with a pipeline bottleneck that has led to a [Read more]
Husky Energy to receive majority support in hostile MEG takeover
Husky Energy Inc expects to secure over 50 percent support from MEG Energy shareholders for Husky's $3.3 billion unsolicited offer to take over the rival oil producer by Wednesday's deadline, people familiar with the situation told Reuters. The numbers may still fall short of the two-thirds threshold required to get the deal across the finish line, the sources said, declining to be named as the details were not public. In that case, Husky plans to extend the deadline to buy more time to [Read more]
Alberta’s oil cuts offer lifeline to producers but create new problems
Alberta's OPEC-style decision to force production cuts is benefiting oil companies with higher prices, but it is also pushing capital elsewhere and threatens to undermine booming crude-by-rail shipments. After Alberta cut 325,000 barrels per day (bpd) starting this month, the discount on Canadian heavy oil compared to benchmark U.S. crude oil shrank to less than $7 per barrel from more than $40 in October, providing relief for producers. But drilling activity has dropped sharply in the [Read more]
Heavy crude differential widens slightly after narrowing all week
The Canadian heavy oil differential widened slightly against the West Texas Intermediate (WTI) benchmark on Friday, after narrowing throughout the week: * Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $7.45 a barrel below WTI crude futures , wider than Thursday's settle of $7.35 below WTI, according to Net Energy Exchange. * But the intraday price of $6.95 is the smallest discount on Canadian heavy crude to WTI since June 2015, [Read more]
U.S. oil drillers cut rigs for second week in a row
U.S. energy firms cut oil rigs for a second week in a row as more producers, like Occidental Petroleum Corp , turned conservative in their 2019 drilling plans due to uncertainty over a recovery in crude prices. Drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. The U.S. rig count, an early indicator of future output, is still much higher [Read more]
Canada regulator issues draft conditions in oil pipeline review
Canada's energy regulator released draft revisions of conditions and new recommendations on Thursday as part of the Trans Mountain oil pipeline expansion re-review, ordered last year after a Canadian court overturned the approval of the project. The National Energy Board proposed amendments to existing conditions related to marine safety and mammal protection, and introduced 13 new draft recommendations for comment. A final report is due by Feb. 22. Canada's Federal Court of Appeal last [Read more]
Heavy crude differential tightens again
The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Thursday, as curtailments and brisk rail movement reduced bloated supplies: Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $7.35 a barrel below WTI crude futures , narrower than Wednesday's settle of $8.15 below WTI, according to Net Energy Exchange. The intraday price of $7.20 is the lowest discount on Canadian heavy crude to WTI since [Read more]
Heavy crude differential narrowest since mid-2015
The Canadian heavy oil differential moved to the narrowest level since mid-2015 against the West Texas Intermediate (WTI) benchmark on Wednesday, as government-ordered curtailments and brisk crude-by-rail shipments boosted prices:* Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $8.15 a barrel below WTI crude futures , narrower than Tuesday's settle of $9.20 below WTI, according to Net Energy Exchange.* The settled price is the lowest [Read more]
Bank of Canada: low Canadian dollar plays big role in adjusting to oil shock
The lower Canadian dollar is playing "an important role" in helping the economy adjust to the shock of lower crude prices, the Bank of Canada said on Wednesday. The central bank it expected weak crude prices since the middle of last year to cut gross domestic product by about 0.5 percent by the end of 2020. Canada is a major oil exporter and in recent weeks the crude slump has helped pull the domestic currency down to an 18-month low against the U.S. dollar. This is helping mute the pain [Read more]
TransCanada’s Keystone crude line to cut some spot rates to Illinois, Cushing
TransCanada Corp's Keystone pipeline filed with U.S. regulators to cut some temporary discounted spot rates to haul crude from Canada to Wood River and Patoka, Illinois and Cushing Oklahoma, effective Feb. 1:* Temporary discounted spot rates for oil moving from the international boundary at or near Haskett, Manitoba, to Wood River, Patoka and Cushing would range from $21.242 to $25.032/cubic meter for light crude and $22.642 to $26.331/cubic meter for heavy crude - FERC filing. * Current [Read more]