Trans Mountain Corp has restarted construction on the Trans Mountain pipeline expansion, the company said on Wednesday, a year after the project stalled because of regulatory delays. The expanded pipeline will nearly triple the flow of crude from Alberta's oil sands to the British Columbia coast but is fiercely opposed by environmental and some indigenous groups. Last year a Canadian court overturned the federal government's 2016 approval of the project on the grounds it had failed to [Read more]
Oil market starts to rebalance at lower prices
Global oil consumption is falling at the fastest rate for almost five years as manufacturing activity and trade flows slip around the world and vehicle production tumbles. Demand in the top 18 consuming countries, each using more than 1 million barrels per day (bpd), fell by almost 0.2% in the three months between March and May compared with the same period a year earlier. Oil use is falling at the fastest rate since the third quarter of 2014, according to national government data [Read more]
Alberta extends oil curtailments by 1 year, through 2020
The government of Canada’s main oil-producing province, Alberta, said on Tuesday it was extending mandatory curtailments on crude production by an extra year through 2020, because of uncertainty about when expanded pipelines may come online. Alberta’s previous New Democratic Party government imposed production limits in January to drain a glut of oil in storage that built up due to congested pipelines. The curtailments have dramatically reduced a painful discount on Canadian heavy crude, but [Read more]
U.S. natgas futures hold steady on outlook for near-normal weather
U.S. natural gas futures were little changed on Tuesday amid forecasts for near-normal temperatures going into the home stretch of summer. Front-month gas futures for September delivery on the New York Mercantile Exchange (NYMEX) remained unchanged at $2.210 per million British thermal units as of 10:24 a.m. EDT (1424 GMT). Forecasts indicate a turn to more normal temperatures, said Thomas Saal, senior vice president of energy at INTL FCStone. "The market is waiting for this week's [Read more]
U.S. removed almost 2.7 mln barrels of Iranian oil from market
The United States has removed nearly 2.7 million barrels of Iranian oil from global markets as a result of Washington's decision to reimpose sanctions on all purchases of Iran's crude, U.S. Secretary of State Mike Pompeo said on Tuesday. In an interview with MSNBC, Pompeo said the U.S. government was confident it could continue with its strategy. The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers. In May, [Read more]
Exxon says production shut at Hibernia oil platform after power outage
Production is shut down at the 220,000-barrel-per-day Hibernia oil platform off the coast of eastern Canada, Hibernia's largest shareholder ExxonMobil Corp said on Monday, after a temporary power cut led to oil and water leaking into the ocean. Exxon estimated around 14 barrels of oil leaked. It is the second spill in a month from the platform, and comes just days after Hibernia resumed production following the mid-July leak. The platform has been producing oil since 1997 and sits roughly [Read more]
Saudi Aramco asks banks to pitch for roles in planned IPO-sources
Saudi Aramco has formally asked major banks to submit proposals for potential roles in its planned initial public offering, two sources with direct knowledge of the matter said. Aramco's planned IPO, which could potentially raise $100 billion, is the centrepiece of Saudi Arabia's economic transformation drive to attract foreign investment and diversify away from oil. Request for proposals were sent to banks few days day ago, they said. Aramco declined to comment. The formal IPO [Read more]
MEG Energy complains to Canada regulator over proposed Enbridge pipeline changes
Oil sands producer MEG Energy has written to Canada's energy regulator to oppose pipeline company Enbridge Inc's plan to introduce long-term fixed volume contracts on its Mainline system. MEG's open letter to the National Energy Board regulator, filed on Friday, makes it the largest producer so far to call for Enbridge to scrap its Mainline plan because of how it will affect producers' ability to ship crude to market. The 2.85 million barrel per day Mainline is North America's largest [Read more]
Oil up after drone attack on Saudi field, but OPEC report caps gains
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemen’s Houthi forces and as traders looked for signs of progress in U.S.-China trade negotiations. Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand. U.S. West Texas Intermediate (WTI) crude futures were up $1.01, or 1.8%, at $55.88 a barrel. Brent crude, the international benchmark for oil prices, was up 85 cents, [Read more]
Husky to resume full production at White Rose field
Husky Energy Inc said on Friday it would resume production from the last two shut-in drill centers at its White Rose field, which was shutdown last year after an oil spill off the Atlantic Coast.The Canadian oil and gas producer said it will now begin an orderly restart process and expects to reach full rates from by early next week.Husky, the operator and majority owner of the White Rose field, said it expects production there to ramp up to about 20,000 barrels per day after the startup. [Read more]