(Reuters) - U.S. energy companies this week cut oil rigs for the first time in seven weeks even as crude prices hovered near a three-year high, prompting more drillers to boost spending plans for 2018. Drillers cut four oil rigs in the week to March 9, bringing the total count down to 796, 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 much higher than a year ago when 617 [Read more]
Heavy crude discount narrows for first time in four sessions
The Canadian heavy oil discount narrowed on Thursday against the West Texas Intermediate (WTI) benchmark for the first time in four trading days. Rail locomotive capacity remains tight, with both supply and demand high, said a crude by rail terminal operator. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, settled at $26.10 a barrel below the WTI benchmark crude price, according to Shorcan Energy brokers, compared with Wednesday's settle of [Read more]
Shell’s U.S. shale output plans prioritize oil over natgas
Royal Dutch Shell Plc is focused on increasing its U.S. shale operation's oilproduction while slowing investment in lower-margin natural gas,an executive said on Thursday. The Anglo-Dutch company aims to boost its overall shale production by 200,000 barrels of oil equivalent per day (boe/d) to 500,000 boe/d between 2017 and 2020, mostly in the United States with some production in Argentina. Although the shale business has yet to generate a profit, it is expected to do so next year, Greg [Read more]
Trump seeks balance with Canada and Mexico, U.S. energy chief says
The Trump administration istrying to find the right balance with top trade partners Canadaand Mexico as it considers tariffs on imports of steel andaluminum, U.S. Energy Secretary Rick Perry said on Thursday. "We are partners. But we're competitors. And finding that nice balance is what this is all about," Perry said on CNBC when asked whether Canada and Mexico were concerned that President Donald Trump's proposed tariffs could hurt the U.S. neighbors.Perry was speaking from the CERAWeek [Read more]
Oil rally stalls amid rising production forecasts: Kemp
LONDON, March 8 (Reuters) - Despite the overwhelmingly bullish sentiment that still dominates talk about oil prices, the rally that started at the end of June 2017 seems to have run out of momentum. Front-month Brent futures prices peaked in the final week of January and have since been on a gently declining trend. Brent calendar spreads peaked even earlier in January and have also been gently softening for nearly two months now. Prices and spreads are back to levels they first reached in the [Read more]
Heavy crude discount widens on supply buildup
The Canadian heavy oil discount widenedon Wednesday against the West Texas Intermediate (WTI)benchmark, as supplies continued to build amid tight transportcapacity.* Movement of crude is not expected to pick up significantlyuntil spring, when TransCanada Corp's Keystone pipelinemay be back up to full pressure after a November leak, and railcapacity may be more widely available, traders have said.* Recent ebbs and flows in the discount's range are theresult of a trickling of [Read more]
Australia’s Woodside drops Grassy Point LNG plan in Canada
Australia's Woodside Petroleum has dropped plans to build a liquefied natural gas export plant at Grassy Point on Canada's west coast,choosing to focus on another Canadian LNG project, Kitimat, run by Chevron Corp . Woodside's rights to develop the Grassy Point LNG site,about 30 km north of Prince Rupert, expired on Jan. 15, and the company said on Wednesday it had decided not to renew the agreement. "The decision was made after careful consideration of our long-term development strategy [Read more]
U.S. metals tariff would hurt future returns: shale company CEO
HOUSTON (Reuters) - Pioneer Natural Resources Co Chief Executive Tim Dove on Tuesday said proposed U.S. tariffs on imported steel and aluminum would negatively impact his shale oil production company’s profits. Dove’s remarks echoed several other energy executives who this week said they faced higher costs from tariffs, and said there are certain types of metal that are not made by U.S. companies. Pipeline and refining expansions could be revisited if the tariffs significantly raise [Read more]
Suncor’s Sarnia, Ontario refinery to undergo turnaround in April
Suncor Energy's refinery in Sarnia, Ontario is expected to undergo a turnaround in April, news website blackburnnews.com reported on Tuesday. Preparation work is underway and the company is now using its alternate flare to get the main flare ready for the turnaround, the report said, quoting a community alert notice by the company. The alternate flare is scheduled to be in use until late June, the report added. Suncor operates a 85,000 barrel-per-day (bpd) refinery inSarnia, Ontario, [Read more]
Heavy crude discount widens on bulging stockpiles
The Canadian heavy oil discount widenedon Monday against the West Texas Intermediate (WTI) benchmark,as bulging crude stockpiles in Alberta weighed on prices andreversed part of a recent narrowing of the price spread. * The discount had been shrinking modestly in the past weekdue to additional railway volumes. However, these shipments havenot meaningfully reduced the supply overhanging the market, aCalgary-based trader said.* Western Canada Select (WCS) heavy blend crude for Aprildelivery in [Read more]