Small Canadian oil producers are striking complex deals with refineries, diversifying production and seeking marketing help as they try to soften the blow from record price discounts on heavy crude generated by pipeline congestion.Unlike integrated companies Suncor Energy and Imperial Oil that have refineries to process their own oil, reserved pipeline space, storage, and marketing departments, small producers scrape by with less.That reality is spurring companies such as Pengrowth Energy [Read more]
Heavy crude discount widens, light discount hits 6-year high
The Canadian heavy oil differential widened slightly against the West Texas Intermediate (WTI) benchmark on Wednesday, while the light oil differential tripped its widest level in 6-1/2 years.* Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, settled at $42.25 a barrel below the WTI benchmark crude futures , compared with Tuesday's settle of $42, according to Shorcan Energy brokers. * Light synthetic crude from the oil sands for November delivery [Read more]
Merger talks started in spring between Canadian oil companies Husky, MEG
Canadian oil companies Husky Energy Inc and MEG Energy Corp discussed a possible merger for months, and one major MEG shareholder expressed interest early, before Husky was rebuffed and launched a hostile bid this week, according to a Husky filing. Husky, controlled by Hong Kong tycoon Li Ka Shing, announced on Sunday a cash-and-stock offer for MEG in a deal valued at C$6.4 billion ($4.99 billion). MEG, whose investors include Chinese state-owned oil producer CNOOC Ltd , said it would [Read more]
Canada won’t appeal court ruling that overturned pipeline approval
The Canadian government will not appeal a court ruling that overturned its approval of a major crude oil pipeline expansion project, Natural Resources Minister Amarjeet Sohi said on Wednesday.Instead, the government will reinitiate consultations with all 117 indigenous groups that would be affected by the project, he told a news conference. In August, the Federal Court of Appeal said Ottawa had failed to adequately consider aboriginal concerns."We are going to do things differently this [Read more]
After lean years, Big Oil is under pressure to spend
LONDON (Reuters) - Executives at the world’s biggest oil and gas companies are under growing pressure to loosen the purse strings to replenish reserves, halt output declines and take advantage of a crude price rally after years of austerity. With oil at a four-year high of $85 a barrel, exploration departments are urging company boards to drill more, wages are creeping higher, service companies say rates will have to rise and some investors say Big Oil must start growing again soon. For [Read more]
Build it and they will buy. The new world of LNG Canada
The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of "she'll be right, mate." The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell , which is leading the $31 billion venture along with partners Petronas , Mitsubishi , PetroChina and Korea Gas . What makes the first export plant on Canada's west coast different [Read more]
Heavy crude discount widens amid tight transport
The Canadian heavy oil differential widened against the West Texas Intermediate (WTI) benchmark on Tuesday: Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, settled at $42 a barrel below the WTI benchmark crude futures , compared with Monday's settle of $39.50, according to Shorcan Energy brokers. Friday's settle of $43.50 marked a new record spread for the differential. Rising output from Canada's oil sands has run up against full pipelines, [Read more]
LNG export terminal projects to be approved 2018-2019
The launch of a massive liquefied natural gas (LNG) export project in Canada has finally fired the starting gun on a wave of plan approvals around the world, needed to avoid a supply crunch after 2020. Below is a list of the large LNG export terminal projects with final investment decisions (FIDs) expected by the end of next year. Country/Project Companies FID Start-up Capacity date date mtpa Russia [Read more]
Shell’s LNG Canada seen as tip of megaproject iceberg
The launch of a massive liquefied natural gas (LNG) export project in Canada has finally fired the starting gun on a wave of plan approvals around the world, needed to avoid a supply crunch after 2020.Royal Dutch Shell said it would export LNG from Western Canada by 2025 after approving a $14 billion project, hot on the heels of Qatar's commitment last week to expand its facilities. The two announcements, adding 37 million tonnes a year (mtpa) to the 290 million tonnes traded in 2017, [Read more]
Too much oil? Texas boom outpaces supply, transport networks
MIDLAND, Texas (Reuters) - The west Texas drillers that drove the shale revolution have overwhelmed the region's infrastructure with oil production -driving up costs, depressing regional oil prices and slowing the pace of growth. The U.S. government continues to forecast the country's oil output rising to fresh record. But competition for limited resources in Texas is making it harder for shale producers to turn a profit and encouraging some to invest elsewhere. Texas is home to the Permian [Read more]