U.S. energy firms this week reduced the number of oil rigs operating for a fifth week in a row to its lowest in nearly a year as independent producers follow through on plans to cut spending on new drilling with the government cutting its growth forecasts for shale output.Drillers cut nine oil rigs in the week to March 22, bringing the total count down to 824, the lowest since April 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on [Read more]
Ahead of Alberta vote, Canada’s oil industry roots for the opposition
Canada's battered oil industry is rooting for the opposition in next month's election in energy heartland Alberta, investors said on Wednesday, but a brewing scandal involving the party's leader could derail its hopes of an easy victory. Alberta contains Canada's vast oil sands, home to the world's third largest crude reserves. With an economy nearly the size of Ireland, the province contributes almost 15 percent of Canada's gross domestic product. But billions of dollars of foreign [Read more]
Alberta to hold provincial election on April 16
CALGARY — Alberta Premier Rachel Notley has called an election for April 16. Notley asked cheering supporters standing behind her in Calgary this morning if they are ready to fight for an Alberta that benefits everyone. She began her attack on the leader of the Opposition United Conservatives immediately. "The question is this: do Albertans stick together or do we turn on each other?" she said. "Jason Kenney wants two Albertas — one for the wealthy and one for the rest of us. He [Read more]
Canada’s Alberta increases crude output limit for May and June
The Canadian oil-producing province of Alberta will increase crude production limits by 25,000 barrels per day in May and a further 25,000 bpd in June, the government said on Monday.The increases mean that by June, oil companies will be limited to 3.71 million bpd of production.Alberta mandated production cuts this year to ease congestion on export pipelines that resulted in crude getting bottlenecked in storage and the discount on Canadian heavy crude widening to record levels."This [Read more]
Alberta kicks off final legislature session before election
Alberta on Monday opened its final legislature session before a provincial election, which polls suggest could see the left-leaning New Democratic Party cede power to the United Conservative Party opposition. Premier Rachel Notley has not yet set a date for the election, but Alberta law states it must be held between March 1 and May 31. Voters will be asked to cast their ballots at a time of controversial government intervention in Alberta's oil market that has drawn support from some [Read more]
Canadian oil companies continue to cut 2019 capital expenditures
Canada's oil producers lowered their capital expenditures for 2019 due to volatility in crude prices and mandatory production cuts in the province of Alberta. Imperial Oil Ltd said on Friday it would delay its C$2.6 billion ($1.95 billion) Aspen oil sands project in Alberta by about a year after the provincial government imposed output cuts to tackle pipeline bottlenecks. "As part of its 2019 capital budget, the company had earmarked C$800 million in Aspen related spending, which will [Read more]
Heavy crude discount inches wider in thin trade
The Canadian heavy oil differential widened slightly compared with the West Texas Intermediate (WTI) benchmark on Friday:* Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, last traded at $10.00 a barrel below WTI crude futures , widening marginally from Thursday's settle of $9.95 a barrel below WTI, according to Net Energy Exchange.* It was the last day of the monthly trade cycle, which runs from the first of each month until the day before pipeline [Read more]
Canadian oil firms lament output cuts as rail volumes slip
Some Canadian oil executives blame higher crude prices from mandated production curbs for hurting their refining margins and depressing shipments of Alberta crude to U.S. customers. The government of Alberta last year mandated output cuts of 325,000 barrels per day (bpd) to help alleviate a supply glut that had weighed on crude prices and earnings of Canadian producers. Many in the industry had praised the move as prices rose. But other Canadian companies including Husky Energy Inc and [Read more]
U.S. oil rig count falls to lowest since April 2018 -Baker Hughes
U.S. energy firms this week reduced the number of oil rigs operating for a fourth week in a row with drilling slowing to its lowest in nearly a year, prompting the government to cut crude output growth forecasts. Drillers cut one oil rig in the week to March 15, bringing the total count down to 833, the lowest since April 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. That is the first time the rig count has declined for four [Read more]
Imperial Oil delays Aspen oil sands project due to Alberta output cuts
Canada's Imperial Oil Ltd will delay its C$2.6 billion Aspen oil sands project in Alberta by about a year after the provincial government imposed output cuts to tackle pipeline bottlenecks.The Calgary, Alberta-based company, majority owned by Exxon Mobil Corp , said it had slowed the pace of development of the 75,000 barrels per day project, whose first output was expected in 2022.Alberta introduced oil production cuts earlier this year to deal with tight pipeline capacity, which has [Read more]