Japanese trading house Mitsubishi Corp said on Tuesday it will join in developing the LNG Canada project in British Columbia led by Royal Dutch Shell, which has taken a final investment decision to go ahead with the development.The C$40 billion ($31 billion) project, on the west coast of Canada, will consist of two liquefied natural gas (LNG) production facilities, known as trains, that are expected to export about 14 million tonnes per year of the fuel. LNG Canada is a joint venture [Read more]
Massive Canadian LNG project gets greenlight from owners
A C$40 billion ($31 billion) liquefied natural gas export project in Canada has received the final go-ahead from its project partners, LNG Canada said on Tuesday, with first gas expected before 2025.Stakeholders Royal Dutch Shell , Malaysia's Petroliam Nasional Bhd , PetroChina Co Ltd , Korea Gas Corp and Japan's Mitsubishi Corp have given final investment decisions, LNG Canada said on its website.Shell said that construction of the project at Kitimat will start [Read more]
U.S. East Coast refiners cash in by the trainload on Canadian oil
U.S. East Coast oil refiners are ramping up rail deliveries of crude from Western Canada, grabbing stranded barrels that full pipelines have driven to a record discount. That trend is expected to accelerate, as prices will remain weak, with no new Canadian export pipelines expected until late 2019. Rail volumes from Canada to East Coast refineries averaged 35,000 barrels a day for the 12 months ending in July, up from 16,000 bpd for the prior 12-month period. Canada is having difficulty [Read more]
Average 2018 U.S. crude price forecast at $68.81/bbl – Dallas Fed
(Reuters) - The average price of U.S. benchmark West Texas Intermediate (WTI) crude futures should be $68.81 a barrel by the end of the year according to results of a survey released by the Federal Reserve Bank of Dallas on Monday. Responses ranged between $55 and $85 per barrel, according to the results of a poll of oil and gas executives, with WTI spot prices averaging $69.79 during the survey period, which was conducted from Sept. 12-20. On Monday, WTI was trading around $74.75 per [Read more]
Heavy crude discount narrows as new trading window opens
The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Monday, the first day of a new monthly trading window. * Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, settled at $39.50 a barrel below the WTI benchmark crude futures , compared with Friday's settle of $43.50, according to Shorcan Energy brokers. * Friday's settle marked a new record spread for the differential.* Rising output from [Read more]
Canadian oil merger to help manage price discounts – Husky CEO
Husky Energy Inc's hostile bid for MEG Energy Corp reflects the need for Canadian oil companies to own integrated assets, from production to refineries, to manage the deep price discounts on Canadian crude, Husky Chief Executive Rob Peabody said on Monday.Peabody said Husky will shortly begin to meet with MEG shareholders about the deal, valued at C$6.4 billion, but would welcome talks with MEG's board. (Reporting by Rod Nickel in Winnipeg, Manitoba) [Read more]
Canada’s Husky Energy offers to buy MEG Energy in $6.4 bln deal
Canadian oil and gas producer Husky Energy Inc said on Sunday it has offered to acquire rival MEG Energy Corp in a deal valued at C$6.4 billion (USD $5 billion) including debt. The combined company will have total production of more than 410,000 barrels of oil equivalent per day (boepd) and refining and upgrading capacity of about 400,000 barrels per day (bpd), Husky said. The offer comes as many Canadian oil producers have struggled with transportation bottlenecks as output has surged, [Read more]
U.S. oil drillers add fewest rigs in quarter since 2017
U.S. energy companies cut oil rigs for a second consecutive week as new drilling stalled in the third quarter with the fewest additions in a quarter since 2017 due to pipeline constraints in the nation's largest oil field. Drillers cut three oil rigs in the week to Sept. 28, bringing the total count down to 863, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. For the third quarter, the increase of five oil rigs was the smallest since [Read more]
Oil market hears echoes of 2007/8
LONDON (Reuters) - Eleven years ago, on Monday Sept. 24, 2007, the price of Brent crude closed just below $79 per barrel, not far from where it is today. Three days later, Brent closed above $80 for the first time in history. Less than 10 months after that, prices closed at an all-time high of $146. Past prices are not necessarily a guide to the future, but the events of 2007/08 are a reminder that price moves are highly non-linear, especially around turning points in the cycle. Price [Read more]
Keystone XL pipeline route would not harm environment – U.S. State Dept
The U.S. State Department on Friday issued an environmental assessment of a revised route for the Keystone XL crude pipeline that concluded it would not harm water or wildlife, clearing a hurdle for the project that has been pending for a decade. Even if the pipeline spilled crude oil along its revised route through Nebraska, a top concern of environmentalists, there would likely be no impact to groundwater, the nearly 340-page draft review said. "Prompt cleanup response would likely be [Read more]